22 Oct
The real estate market is constantly evolving, and we already have indications of how the market will look in the future. Currently, there is a much greater demand for real estate offers, which pushes real estate and mortgage prices up and at the same time leads to restrictions on obtaining financing from the bank.
A very simple solution to these restrictions is LOL.
Let’s take a look at the pros and cons of this form of housing compared to a standard mortgage and rent:
| LOL | Mortgage | Rent | |
| Type of ownership | 👍 Cooperative partner with the possibility to transfer to personal ownership at any time | 👍 Private ownership | 👎 Of someone else’s |
| Visibility of the property to others | 👍 No | 👎 Cadastre | 👍 No |
| Dept information | 👍 Not in registers | 👎 Is in registers | 👍 Not in registers |
| Installment amount | 👎 Higher | 👍 Lower | 👎 Pay to someone else |
| Amortization | 👍 Yes | 👍 Yes | 👎 No |
| Own funds | 👌 20% of the property price | 👌 10% of the property price | 👎 Real estate agency fee |
| Refundable deposit | 👎 3 rentals in advance | 👍 No | 👎 2-3 rentals in advance |
| Income proofs | 👍 Statutory declaration of income | 👎 Only approved by the bank | 👍 Not important |
| Form of further use | 👍 Sublease (more info at a specialist) | 👌 Rent | 👎 Anything |
| Financial settlement in case of obstacles | 👍 Sale of real estate at market value, payment of the remaining amount | 👎 Confiscation of property by the bank sold at auction | 👎 Eviction |
| 8 of 10 | 6 of 10 | 3 of 10 |
Let’s look at a model example of a 3+kk apartment in Prague:
Estimated price of the property: 5,000,000 CZK
Client’s own funds: 900,000 CZK
However, the client wants to give 30%, that being CZK 1,500,000, so he/she needs to co-finance CZK 600,000
| Rent of flat 3+KK | 22,000 CZK | LOL (30 years) | 17,036 CZK |
| Services | 4,500 CZK | Services | 4,500 CZK |
| Credit (15 years) | 4,732 CZK | ||
| Total | 26,500 CZK | Total | 26,278 CZK |
It is much better to pay the same money for my own apartment than for a rent, right?
Make an appointment with our specialist now and soon you can be living in your own home and still save money.
