Docstoc

L'OceLOt – InfO Pack _cZ_

Document Sample
L'OceLOt – InfO Pack _cZ_ Powered By Docstoc
					L’OceLOt – InfO Pack (cZ)
FOREWORD

                                                                                                                       DisclaimER
the information and representations made available in this document have been prepared by the ceReS Group for informational purposes
only and is not intended to replace any professional advice. It should be noted that property prices may fall and rise as circumstances
vary for each prospective buyer. the ceReS Group and all affiliated parties advise all clients to seek legal advice prior to considering a
real-estate investment.


                               FOREWORD
Due to the evolving nature of the czech real estate market and associated laws the specific values shown in this document may be
subject to change without notice. We ask that you take this into consideration in all your calculations based on the prices and values listed.
By utilizing this document you acknowledge that you do so at your own risk and understand that decisions to purchase any property
should not be based purely on this document. Values may vary until they are finalized in contractual form. the ceReS Group assumes no
responsibility for any errors, inaccuracies, omissions or other defects in any of the information provided in this document.

In addition, the views and information herein is compiled from a variety of different sources and do not necessarily reflect those of the
ceReS Group.


                                                                                                             ExchangE RatEs
exchange rates are provided for indicative purposes only and may not accurately reflect current rates. Purchases of property will be con-
cluded in czech korunas (cZk) unless stipulated otherwise. Price lists are also subject to change without notice and do not necessarily
reflect the most up-to-date availability of units. for the purpose of this document, the following conversion rates have been utilized.

EUR 1 = CZK 28.2
GBP 1 = CZK 41.3

Prior to finalising any purchase utilising a foreign currency, we encourage you to confirm the rate of exchange and to note the trends and
fluctuations that might affect your future investment.




                                                                                                                                                 
intRODuctiOn

an eight minute drive to the city centre, in the district of Vysocany, this residential project with unique design and state-of-the-art
technologies will become one of the most interesting projects in the area. L’Ocelot will be an eleven floor building at Ocelarska Street,
due for completion in the fourth quarter of 2007. Most of the apartments will have terraces connected with the interior through large
french windows facilitating perfect connection between the interior and exterior. Penthouse apartments will have large terraces with a
view of Prague. the apartment house will include a small Parisian style café-restaurant where residents can have fresh baked goods and
fine coffee for breakfast or have a supper on their way from work. each apartment has its own basement storage compartment and safe
deposit for approximately 120 bottles of wine in a wine cellar.

L’Ocelot comprises of 59 apartments and is located in the vicinity of the Rokytka creek in a recently designed park that is a part of the
zone called “Zelený ostrov” (Green Island) currently originating in the surroundings of the Sazka sports hall. apart from leisure and sport
facilities it boasts great public transportation access and a short drive to get to the city centre.


                                                                                                            PROjEct OvERviEW
Project timetable:
Start Marketing:                                        nov/06
Building Permit:                                        nov/06
construction Start:                                     Oct/06
Project completion:                                     Q4 2007


Development name:                                       l'Ocelot apartments
address:                                                Ocelarska Street, Vysocany, Prague 9
tenure:                                                 freehold
no. of apartments:                                      59
apartment sizes:                                        50 m² -184 m²
no. of buildings:                                       1
no. floors:                                             11
Parking:                                                63 under ground parking spaces, including also twin-car stack lifts
Starting price:                                         1,673,000 cZk/59,350 eUR/ 40,500 GBP (excluding Vat)
Service charges:                                        30 – 40 cZk per sqm / per month (estimated)
Parking price:                                          150,000 cZk & 220,000cZk/ 5,320- 7,800 eUR/ 3,632 cZk- 5,327 per space (excluding Vat)
Developer:                                              Podzimek a Synove s.r.o.
Lead architect:                                         Studio Sea s.r.o.




                                                                                                                                                 
                                                                                                                    abOut cEE
The Central And Eastern European Region

Home to gorgeous scenery, stunning coastlines, unexplored forests, a wealth of history and culture – and now also home to some of
the most exciting emerging economies and real estate markets in the world. On May 1st 2004 cyprus, czech Republic, estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia joined the eU. Under current plans, Bulgaria and Romania will join them in
the eU fold in 2007.

the appeal of central and eastern europe goes beyond the consolidation of the accession states. the thinning economic and social borders
throughout the entire region and an increase in foreign Direct Investment (fDI) from corporations’ off-shoring business functions to take
advantage of highly-killed but lower-cost work forces means the current climate for property investors is excellent:

•   as fiscal enrichment permeates the cee development is encouraged and booming (and property taxes slashed) to bring these coun-
    tries in line with the rest of the eU.
•   Investors can choose between attractive modern designed apartments and gorgeous ancient homes in old historic centres.
•   the burgeoning middle classes of the cee offer the investor and opportunity to maximize their investment as this ‘new young rich’
    seek larger and nicer places to have their families.
•   cee markets are not only booming in volume but they’re also booming in price. It is strongly believed that most of these markets are
    likely to outperform more traditional markets, such as Spain or france throughout 2006 and beyond.
•   new jobs and an overall level of economic growth have resulted from major economic reforms

the rapid price rises witnessed in central eastern europe have been fuelled by highly successful national economies that have attracted
large amounts of inward investment.




                                                                                                                                            
                                                                        abOut thE czEch REPublic
"Prague is endlessly fascinating and diverse, and a crossroad of cultures. It is a city of such a physical beauty."
                                                                                                              (Homes Worldwide)

Economic Overview
the czech Republic’s economy is as strong as ever and shows no sign of slowing down. the czech national Bank (cnB) is one of
the most credible central banks in cee at this time. the financial market’s maturity and strong currency make the czech Republic
an ideal environment for the foreign investor. the czech Republic has one of the highest per capita foreign Direct Investment
(fDI) in continental europe. With legal and tax reform underway, unemployment rates falling, low interest rates, and a well
educated labour force, the czech Republic has solidified its economic stronghold on the european market:

    Basic Data:
    •   Gross Domestic Product 110.2 billion USD
    •   GDP growth 4.8 %
    •   GDP per capita 18,100 USD
    •   foreign Direct Investment 8,148.9 million eUR (czech national
        Bank, Balance of payments 2005)
    •   Rate of Inflation: 2.0%
    •   Unemployment: 9.1% (Prague- 3%)
    •   Population: 10.2 million
    •   currency: czech crown (cZk)


Mortgages in the Czech Republic
the domestic mortgage market is now worth around 150 billion cZk – double its value in 2000. Still, the
total potential tapped is only in single digits percentage-wise, leaving plenty of room for growth over the
foreseeable long term. around 80 billion cZk were advanced by czech banks for mortgage loans in the
first half of 2003. this compares with 60 billion for the same period in 2002. that is an increase of 38%,
which is a staggering leap. However, the concept of mortgages is relatively new to the czech Republic
banking institutions. this tells you a great deal about what is and will be fuelling the market in Prague
for some time.

Property investment in the Czech Republic offers a terrific combination:
•       High growth potential though either mature markets that will continue to grow steadily,
        or through basement level opportunities that are likely to take off.
•       economic, political and social stability
•       freely available finance on attractive terms in a market that is now constantly offering new and improved
        products




                                                                                                                                   
                                                                                                               abOut PRaguE

“Prague's prominent role in medieval central europe is rewarded with this inclusion. It has seen continuous urban development from the
Middle ages to the present, resulting in an architectural ensemble of outstanding quality”                         (World Heritage Site)



 Basic Data:
 •   1.21 million inhabitants
 •   496 square km
 •   centre of the czech Republic, 50°05"n and 14°27"e
 •   average salary 23,729 cZk/Month (€833.489)
 •   approx 7.4 million tourists per annum




Prague’s newly regained status as an international hub has garnered the reputation of ”the Jewel of europe”. Its liberal lifestyle yet modern
mind-set has made it attractive for visitors from all four corners of the world. It is often regarded as the new Paris of old europe.

numerous foreign businesses are now being attracted to Prague for various reasons:
•  centuries of construction gave rise to an exceptional integrated architectural complex
•  concentration of cultural heritage
•  Prague is the seat of the top-level legislative, administrative and political bodies of the country
•  Prague has maintained its exceptional attraction for tourists and is renowned for being one of the world’s most beautiful cities
•  Its central european location, cheap labour costs and beautiful scenery.
•  ever increasing expatriate community
•  an influx of foreign wages since the czech Republic’s accession to the eU on May 01st, 2004
•  almost one-half of the national income from tourism is realised in Prague

a great deal of films are also now shot in Prague, bringing a multitude of actors and celebrities to its doorstep - including the likes of
Johnny Depp, Sean connery, Bruce Willis, and Wesley Snipes.

UneScO listed, the city of Prague has had prominent personalities throughout the centuries pay homage to it, including Mozart, Beethoven,
tchaikovsky, the British Queen elizabeth II and Pope John Paul II. all of whom professed their beguilement by its attractiveness and
architectural beauty.




                                                                                                                                                
lOcatiOn

                                                                               l’OcElOt aPaRtmEnts lOcatiOn
the apartment house is located in the vicinity of the Rokytka creek in a recently designed park that is a part of the zone called “Zelený
ostrov” (Green Island). the close environment of the creek is almost in the full length stabilised by the urban general plan as the public
green area – connected with currently constructed cycle paths.

the area will be, in a few years, one of the most prospective districts in the capital city offering excellent public transportation accessibil-
ity, green areas and leisure & sports facilities.

Within a few minute walk there are two metro stations – Vysocanska and ceskomoravska. a bus stop is just a minute walk away form the
apartment house and also tram stops are within walking distance. It only takes eight minutes to drive to the city centre.




                                                                                                                   aREa bEnEFits
Area benefits from:
•   Pleasant surroundings with lots of greenery
•   8 minute drive to the city centre
•   Great public transport accessibility – metro stations, tram and bus
    stops
•   area currently undergoing reconstruction
•   Hospital with health centre in the area
•   Sport and leisure facilities in the neighbourhood
•   Schools located within walking distance




                                                                                                                                                   
aRchitEctuRal PROFilE

L‘OceLOt distinguishes itself by innovative architecture respecting the genius loci of the place. It is based on the steel tradition of a famous
czech-Moravian Machine-work enterprise that had a considerable effect on the area.

the north, west, and east facades of the house are made of steel sheets. the special steel used rusts quickly; however, rusting will stop
soon and the formed layer of iron oxide protects the steel sheets, which results in an interesting design element.

the south facade, in contrast to the others, is very articulate, lightweight, and coloured according to the colour spectrum used in the
picture Maternity by a very known painter of the 20th century Marc chagall.




                                                                                                                        aRchitEcts
Sea was established in the year 1984 as an unofficial association of architects, engineers and doctors. this group focused on ecological
aspects of architecture. In the year 1992 the association transformed into an architectonical studio, which followed the same direction as
the former and further developed these ideas.

the present area of interest could be resumed into three goals:

1) economical use of energy – application of local energy-saving building materials, maximal use of renewable sources of energy, eco-
nomical architectonical concept.

2) Respecting cultural, social and climate context in architectonical design.

3) Integrating green into the architecture – green is understood as a full-value building element not only in urban planning, but also in
building itself. for example application of green roofs, green facades, habitable green houses.




                                                                                                                                                   
aPaRtmEnts

                                                                                                           tERminOlOgy
In the czech Republic there are specific unit markings used to describe various apartment layouts. We have prepared the following key
to help you understand:

Studio Apartments

1+kk : One room with a kitchenette corner
1+1: two rooms, usually one which is a small tiled kitchen room & a second lounge/bedroom

1 Bedroom Apartments

2+kk: two rooms (one bedroom, one lounge), of which one has a kitchenette corner
2+1: three rooms, usually one which is a small tiled kitchen room & a second lounge/bed

2 Bedroom Apartments

3+kk: three rooms (two bedrooms, one lounge), of which one has a kitchenette corner
3+1: four rooms, usually one which is a small tiled kitchen room & a second lounge/bed




                                                                                                                                        
aPaRtmEnts layOuts

         Apartment   Apartment




                                 10
sPEciFicatiOns

                                                                                                                        sPEciFicatiOn OF aPaRtmEnts stanDaRDs


                                                                   Reinforced-concrete - painted with a clear dustproof and hydrophobic coating, some walls are lined with fermacell
Inter-apartment walls and walls between the hallway and
                                                                   boards painted with an eco-friendly colour coating as per the design of the designer, high acoustic resistance (see the
apartment
                                                                   project documents)


                                                                   fermacell boards - painted with an eco-friendly colour coating as per the design of the designer


Interior walls                                                     Walls lined with wood bio-boards, painted with a clear coating, on the upper strip - an indirect lighting of the bedroom
                     Between the living room and bedroom
                                                                   and living room

                     Bathroom and toilet                           Walls painted with a cement colour coating

                     Living room, bedroom                          face concrete
Ceilings
                     kitchen, entrance hall, and toilet            Plasterboard ceilings

                     Dwelling rooms, kitchen, entrance hall, and
                                                                   Solid oak wood floor
Floors               walk-in wardrobe

                     Bathrooms and toilet                          Solid oak wood floor in combination with a cement coloured through coating
                     floor                                         Grid of wooden slats made of tropical wood
Terraces and bal-    Handrail                                      Steel poles in the structure
conies               Panel                                         Made of safety glass or a heightened parapet in the same make as the facade
                     equipment                                     Lighting, socket and, on the 8th above-ground floor, a water outlet

                     entrance door                                 Safety fire door, neXt standard, smooth, coloured, metal case, and safety fittings
Door
                     Interior revolving door                       Wood smooth door with matt aluminium fittings
                     Interior sliding door                         Wood solid frame with a transparent macrolone insert




                                                                                                                                                  11
                                                        Wood euro-windows openable and hinged; on the north side, ventilation grills facilitating permanent ventilation of apart-
                       north, west, and east
                                                        ments without windows opening

Windows                South                            Wood french euro-windows (in some apartments, folding fittings facilitating the opening in a full profile)

                       Window sills                     Outer sills made of sheet metal, inner sills made of wood
                       1st above-ground floor           Safety foil on windows

                                                        the installation prepared for the connection of water, the sewer system, electrical installation, and range hood; a kitchen
Kitchen                                                 unit and equipment are not included. On walls, there is prepared a grid for the subsequent lining with plasterboard or
                                                        fermacell

                       toilet                           Suspended toilet bowl, flushing in the Geberit standard

                                                        170 white bath, a partially flat bed suitable for having a shower, revolving glass screen, two basins on a wood board, built-
Sanitary equip-                                         in cabinet for cosmetic preparations with a mirror
                       Bathroom
ment
                                                        Maisonette apartments in addition with a shower enclosure with ceramic poliban and glass door

                       taps                             Bath, shower, and basin taps

                                                        Basic lighting located in the platform in the upper part of the wall (indirect lighting)

Lighting, electrical installation, and telephone line   In the centre of main rooms, the installation prepared for the main lighting
                                                        Dwelling room - a switch with a dimmer
                                                        Sta socket in each dwelling room
                                                        number of sockets according to the project documents
                                                        Opening of the entrance door using a key or using an electric door opener from one's apartment, the installation pre-
Security system
                                                        pared for the video telephone
                                                        In the maisonette apartments, the installation prepared for the computer network wiring in the dwelling rooms and bed-
Computer network
                                                        rooms




                                                                                                                                         1
                                             central hot-water heating, control with thermostatic heads; electrical heads in the maisonette apartments

                     Rooms - south side      Built-in heating elements installed in the floor
Heating
                     Other rooms             White panel radiators
                     Bathrooms               floor heating, wall-mounted ladder radiator with an electrical insert
                     Maisonette apartments   In some maisonette apartments, the installation prepared for a fireplace (chimney breast)

                                             Maisonette penthouse apartments and non-residential premises have the installation (piping) prepared for the air-condi-
Air-conditioning system
                                             tioning system


Ventilation                                  In the kitchen, the installation prepared for a range hood, toilet and bathroom ventilation


Measurement and control                      Measurement of power and water consumption and heating individual for each apartment

Stair in maisonette apartments               Wood or steel structure lined with plasterboard, wood treads




                                                                                                                             1
FuRnituRE Packs

In our effort to help you arrange everything concerning your new apartment we have brought together custom-fitted furniture and
kitchen packages, ideally suited for the offered rental units.

In co-operation with leading Scandinavian and Italian designers and producers of furnishings our furniture packages contain everything
you are going to need. Whether you have bought your apartment as an investment or you intend to live abroad full time, one of our
packages will suit your needs.

as an indicative guideline on the packages offered, investors can expect the following costs according to the selected unit size:

  type      Furniture      build-in wardrobe       kitchen         White goods       complements          total         EuR         gbP
  1-bed     75,000 cZk        10,000 cZk          70,000 cZk        40,000 cZk        20,000 cZk       1,000 czk     00         00
  2-bed     98,000 cZk        10,000 cZk          70,000 cZk        40,000 cZk        25,000 cZk       ,000 czk     00         00



transportation, assembly and management typically come to an additional 10% of the total costs. It should be noted that the above prices
are budget guidelines only based on the current prices of our suppliers, however stock and pricing may change over the duration of the
build-time of the project.

clients may also have the option to cover around 50% of the furnishing costs within the mortgage, as any build-in items increase value of
the apartment. these items include kitchen with build-in electrical appliances, build- in wardrobes or lightings.

Should you be interested in more information about these packages please contact us by clicking here. We also have brochures with an
itemized break-down of items available on request.




                                                                                                                                            1
sERvicEs inFORmatiOn

                                                           buying PROPERty in thE czEch REPublic:
Widely acknowledged as one of the most beautiful cities in the world, Prague has in recent years attracted the attention of many foreign
investors. However, as stated by law, non-residents are not able to directly own property. the ceReS Group suggests these solutions:


1. Special Purpose Vehicle (SPV)                                        2. Temporary Residency Permit (EU Card)

the most common method for obtaining ownership for non-                 effective May, 1st 2004, when the czech Republic entered the
residents is through the establishment of a Special Purpose             european Union, eU citizens can --under certain circumstances--
Vehicle (SPV), an entity without any business activity other than       buy real estate without an SPV. an eU citizen is entitled to apply
the purchase, ownership, rental and sale of a property:                 for a temporary eU card which enables the purchase of a property
•   the investor forms or purchases the firm and becomes its            in the czech Republic under his or her name.
    only shareholder.
                                                                        advantages:
•   the company in turn owns the property.
                                                                        •  ability to purchase property under your own name
•   the SPV can be used for financing arrangements in relation
                                                                        •  Less expensive than establishing an SPV
    to the property.
                                                                        Disadvantages:
advantages:
                                                                        •   the process takes up to 60 days from initial application to
•  Ready for immediate operation
                                                                            realization,
•  Guaranteed to have no activities, obligations or claims
   against it
•  Registered capital fully paid up
•  One year free banking with Raiffeisenbank
•  tax & accounting support
Disadvantages:
•   More expensive than an eU card
•   annual accounting and tax reporting required




                                                                                                                                             1
                                                              cEREs- intEgRatED suPPORt sERvicEs (iss)
for prospective clients of L’Ocelot, the ceReS Group have built tailored packages for buy-to-let investors designed to save both time &
money. the package is made up of the services which have been integrated within the ceReS Group with the intent to provide a seamless
approach to the provision of these services.



Integrated Support Services                                                 Integrated Support Services
Company Pack                                                                EU-Card Pack

Included in this ISS package are the following services:                    Included in this ISS package are the following services:
•   Legal representation throughout the purchase transaction                •   Legal representation throughout the purchase transaction
•   formation of the SRO company                                            •   Registering for an eU-card
•   Mortgage brokerage                                                      •   Mortgage brokerage
•   Opening of accounting books & tax advice                                •   Opening of accounting books & tax advice
•   company accounting (2nd & 3rd year)                                     •   eU card accounting (2nd & 3rd year)

normal price for combined services:                                         normal price for combined services:
201,408 cZk (ex-Vat )                                                       150,238 cZk (ex-Vat )

Our price for combined services:                                            Our price for combined services:
189,323 CZK (ex-VAT) - 6,715 eUR / 4,584 GBP                                141,223 CZK (ex-VAT) – 5,008 eUR / 3,420 GBP



The main benefits of purchasing an IIS pack include:
- Discounted services
- ceReS will arrange weekly meetings to coordinate complete service folder
- no duplication of paper work
- One point of contact

the ceReS Group have selected service partners for their reputation, experience and ability to deal with non-resident transactions. When
comparing other service providers it is important to look at all factors such as reputation, communication abilities (ie. fluency in english),
ability to deal with non-resident transactions and integration with other service providers that are required to seamlessly close a purchase
transaction. Whilst there are no doubt cheaper alternatives available, the ceReS Group believe that the selected service partners provide the
best value for money all round.




                                                                                                                                                 1
tRansactiOn cOsts

the following section provides an outline of the costs that one could expect to incur in both the purchase transaction and on completion
of the project in relation to the on-going costs related to running the property as a but-to-let investment. the ceReS Group have identified
a number of reputable partners to assist in all aspects of the property transaction, from the sourcing of the best applicable mortgage, to
the local legal representation and due diligence. the partners sourced have both a proven track record on the local market, as well as the
ability to deal in a professional manner with foreign clientele.

for eU-card holders, a czech address will be required. companies.cz can provide this for 3,000 cZk per month or 18,000 cZk per
annum.



Typical transaction costs (all excluding VAT):                           SRO formation & representation:
Mortgage arrangement               16,000 cZk (ISS)
                                                                                                                            57,000 cZk (ISS)
eU-card arrangement                32,000 cZk (ISS)
Opening of accounting              12,000 cZk (ISS)
                                                                         SRO Registered address (1-yr):
tax advice                         1,250 cZk (ISS)
Legal fees                         45,000 cZk (ISS)                                                                              6,000 cZk

Typical fixed transaction costs:

                               112,250 cZk / 3,980 eUR/ 2,718 GBP

Variable transaction costs:

                                   Bank fees 1% of purchase price




                                              We recommend that you speak with a consultant from Companies.cz prior to making your decision.




                                                                                                                                               1
sEt uP anD OPERatiOn cOsts

It should be noted that many of the given costs are estimations only and can only be determined on a case-by-case basis.

In addition, whilst every effort has been made to give an accurate indication of potential costs that may be involved in the transaction
and on-going running of the property, purchasers may, in certain circumstances, incur additional or unforeseen costs. all prices given are
also excluding Vat rates.



Property set-up costs                                                        Variable annual running costs:

furniture costs:                          75 – 98,000 cZk                    Ground rent & service charge              30-40 cZk p/sqm
                             (depending on apartment size)                                                                    (p/month)

                                 Wardrobe : cca 10,000 cZk                   Life Insurance                      0.04% of purchase price
                             (depending on apartment size)                                                                   per annum

kitchen cost:                              cca 70,000 cZk                    Property Management                   10.00% of rental price
                             (depending on apartment size)
                                                                             tenant finders fee                           1 month’s rent
White goods:                                30 – 40,000 cZk                                                 (every 18 months on average)

complements:                                20 – 25,000 cZk
                                                                             Typical annual variable costs:

On-going costs (annual)                                                                                                        (as above)

accounting & tax:                           12,000 cZk (ISS)

Banking fees (annual):                            1,200 cZk
                                                                             n.B. as with any apartment there will be repairs and general
Home & contents insurance:                        6,000 cZk                  upkeep needed on occasions so an allowance should be made
                                                                             for this at your discretion.
Local property tax:                               3,000 cZk

Typical fixed annual running costs:

                             21,200 cZk / 745 eUR/ 518 GBP




                                                                                                                                             1
REntal ExPEctatiOns
With the rising purchasing power of czech professionals --many of whom are employed with the large international corporations which
have chosen Prague as their european headquarter, there is an increasing demand for modern living spaces.

Due to it’s proximity to the city centre, great public transportation access and extensive redevelopment of the area, Prague 9 is expected
to become one of the most desired residential areas over the next 3-5 years.

Being the exclusive agents of L’Ocelot, the ceReS Group have purposely limited the total number of buy-to-let units available to a maxi-
mum of 25% (15 units) with the remaining units being sold as buy-to-live units. this is to ensure the market is not saturated with rental
units from the same project when the development completes.

for this development, the ceReS Group has obtained an external quote on rental expectations (per month) which is as follow:

Sample apartments gross yield calculations:

Annual Gross Yield= [(rental expectation * 12 months) / purchase price (excl. VAT)]*100%

Sample price breakdown of a one bedroom apartment (cca 50 sqm with a 10 sqm metre balcony):
•   Price of apartment (w/ storage space & balcony): 2,181,000 cZk (excl. Vat)
•   Price of Parking:                                   150,000 cZk (excl. Vat)
•   total price:                                        2,331,000 cZk (excl. Vat)

aGY = [(13,000 cZk * 12) / 2,331,000 cZk]*100 =        6.69%



Sample price breakdown of a two bedroom apartment (cca70sqm + 8sqm terrace):
•   Price of apartment (w/ storage space & balcony): 3,454,000 cZk (excl. Vat)
•   Price of Parking:                                  220,000 cZk (excl. Vat)

•   total price:                                      2,674,000 cZk (excl. Vat)

aGY = [(18,000 cZk * 12) / 2,674,000 cZk]*100 =       5.56%



It should be noted that the given rental quotations are for indicative purposes only and the ceReS Group provide no warranties that these
can be achieved. as with the property prices, rental income can also rise as well as fall on a year-by-year basis.




                                                                                                                                             1
PaymEnt tERms

Payment Schedule

clients are required to transfer the reservation payment 15 days from the signing of the reservation agreement. Reservation fees are
deducted from the fee payable on the exchange of a future Purchase contract.

•   Reservation fee:              50,000 cZk / 100,000 cZk for apartment over 3,000,000 cZk inc. parking

•   Future Purchase Contract: 20%

•   Purchase Contract:            80% (after final inspection)

the Purchase contract is concluded on the completion of the construction and registration of the units.




                                                                                                                                       0
Financing

although it used to be almost impossible eU accession paved the way to enable eU citizens to purchase property in the czech Republic.
However, this does not mean that it is impossible for non-eU citizens.

According to Czech law:
•   no restrictions for non-eU citizens having a permanent residence in the czech Republic;
•   no restrictions for eU citizens with a permanent or temporary residence in the czech republic (license) except for agricultural pur-
    poses;
•   limited possibilities for all foreigners with no residency in the czech Republic (only possible through a czech Single Purpose company,
    so called S.R.O. – this company is set up for the specific purpose to purchase a real estate)

Unlike a mortgage which is offered by a bank in your home country czech mortgages are not secure against other property (collateral)
which you might own.

this means that your home is not at risk of being seized should you default on payments for any reason.

With the czech koruna gaining in strength every year taking a mortgage in the same currency in which you are purchasing allows you to
reduce your currency conversion costs. this is particularly relevant with buy-to-let properties.

Local banks have become more aggressive in competing with the interest rates offered by banks throughout the eU. currently, interest
rates are starting at 3%, meaning that the value of your property will outgrow the costs of its financing.

Simply Mortgages, a partner of ceReS Group, is an independent mortgage broker cooperating with all the major czech mortgage banks.
they are the market leader in assisting foreign investors with czech mortgages.

Simply Mortgages has provided indicative loan-to-values at 80% of the purchase price, inclusive of the kitchen, fixtures & fittings- mean-
ing that typical investors can expect to need to input 20% in personal equity in to the project. Interest rates in the czech Republic start
from 3.4% for a 1-year fixed rate and terms of loans can be up to 25 years if the property is purchased through an eU-card, or 20 years if
purchased through a company.




                                                                                                                                              1
sERvicE PROviDERs

Mortgage Brokerage - (Simply Mortgages)

the mortgage brokerage fee is calculated as a percentage of the loan received. the standard fee is 0.4% of the mortgage amount with a
minimum fee of 16 000 cZk excl. Vat. an exact fee can be provided after the initial meeting.

Company Formation - (companies.cz)

the establishment of a Special Purpose Vehicle (SPV) limited liability company for owning a property has a fixed fee. Inclusive with this
fee is a registered address for 6 months as well as all translations.

Tax Advice - (tax Dimension)

It is advisable to seek tax advice prior to the establishment of an SPV or obtaining a visa. a meeting of 4 hours is generally sufficient for
this purpose. another option is to develop a tax structure with which we can also provide offshore assistance. to develop a complete
structure outline generally takes between 10 to 20 hours.

Legal Assistance & Due Diligence - (Zizka & Partners)

although all cases vary, a client will generally require about 45,000 cZk excl. Vat (1,500 eUR) for legal advice and assistance during the
purchasing process.

Accounting - (Blue Q)

annual accounting is required for an SPV and the price includes annual compliance and filing. accounting -is also required if the property
is held via an eU-card and is intended to be used for buy-to let purposes.

Title Insurance - (Stewart International)

this insurance is designed to protect the buyer from defects, leans and encumbrances and is issued for a onetime up-front fee which
covers the buyer through the duration of property ownership.
                                                    For any enquiries into any of these services please write to us at: enquiries@ceres-group.com




                                                                                                                                                    
abOut thE DEvElOPER

Podzimek & Sons was founded in 1896 as a construction company and has this year been celebrating its 110 th anniversary, which included
two awards, one for Building of the Year 2006 and the other a special prize from Prague’s mayor for the kollarova Rezidency.

Up until now the company has dealt with residential, commercial and industrial constructions and reconstructions, being involved on the
architectural side as well, so L’Ocelot will be their first project as an investor as well.

In the past they have reconstructed such renown and historical buildings as Palace Zofin, the Swiss embassy in Prague and the renaissance
town hall in Brtnice. Recent new builds include 20 houses in na Vidouli, Prague 5 and an apartment house in Prague 8 and many others.




www.podzimek.cz




                                                                                                                                            
salEs

                                                                                                          thE cEREs gROuP
theceReS Group was formed in May of 2004 following the entrance of the central european countries in to the european Union, and is
one of the fastest growing real-estate groups in the czech Republic, with a team of 80 personnel under the umbrella group since the
group’s establishment.

It was formed out of the recognized need for a centralized organization to clarify, stream-line, and assist foreigners with the complex and
often confusing processes that are required for individuals and businesses wishing to purchase property within the central european
region.

Designed as a “one-stop shop”, and targeted towards non-resident investors, the ceReS

Group brings together under one umbrella all the services required for an investor to purchase a property within the region. the ceReS
Group currently offers a number of exclusive properties- both new-build and historic apartments and is able to offer all services required
to complete a real-estate transaction through one contact point.


                                                                                                    PaRtnER cOmPaniEs
the ceReS Group was originally formed as a joint-venture between leading mortgage broker- Simply and the first online company for-
mations firm- companies.cz. Since then, various other entities have come together to provide a complete array of services under one
umbrella group.

for your stay in Prague, we have also recently launched our “concierge Services” to ensure your stay in the czech Republic is as carefree as
possible. this range of services includes airport transfers, historic tours and special rates at partner hotels around the czech Republic.

Our range of services are constantly expanding as we form partnerships with like-minded companies with the end vision to bring any
and all services related to the development, purchase and sale of property under one roof. the key advantage of this cooperation is that
we are able to ensure that all partners maintain a high standard of service towards our clients.




CERES Group
central european Real estate Services
www.ceres-group.com
info@ceres-group.com
+420 272 143 513




                                                                                                                                               
cOntact inFO


If you have any further questions or require any clarifications on any of the points raised in this proposal, please feel
free to contact us directly on the below contact details.




CERES Property Services
na Příkopě 15
110 00 Prague
zech Republic

e        enquiries@ceres-group.com
u        www.ceres-group.com

t        +420 272 143 513
f        +420 272 143 516

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:6
posted:7/17/2011
language:English
pages:25