Are you considering purchasing an investment property? You should take into account not only your financial possibilities, but also the location and the target group to which you will rent the apartment.
“An investment apartment is chosen differently than an apartment for your own living, free yourself from your emotions,” advises financial expert Jarka Popelka in the podcast About money is (not) talked about. She now has 8 investment apartments in her portfolio, which she rents out. Although a few years ago she owed more than half a million crowns and stopped paying, today she helps other women gain financial freedom and passive income.
According to Popelka, the most important criterion for choosing an investment property is the location. Before you buy an apartment, visit the city where you want to invest. Find out where the ideal location for your property is based on its size and target audience.
Childless couples and younger people will want smaller apartments near the center, families will appreciate at least 3+kk in quieter locations. “If you choose the wrong location, you won’t be able to do anything about it and that can significantly devalue your investment,” warns the financial expert.
Photo: Proženy.cz
Financial expert Jarka Popelka (left) with moderator Michaela Raková
Short term vs. long-term leases
Likewise, carefully consider whether you will rent the apartment short-term or long-term. Both options have their pros and cons and require different apartments. Short-term rentals may be more advantageous in tourist-attractive locations. Elsewhere, long-term rentals are worthwhile.
An apartment for short-term rentals requires a higher initial investment for complete equipment, you have to clean it and take care of it regularly. You do not need to furnish apartments for long-term rent.
Previous podcast episodes
“On the contrary, it is more advantageous to rent it unfurnished, because if the tenant brings his own furniture there, assembles it, he doesn’t want to move away immediately and re-furnish somewhere,” Jarka reveals his tactics, saying that the long-term rental results in a lower but constant income.
Listen to the entire interview with financial expert Jarka Popelka in the podcast Money is (not) talked about – you can play it in the player at the beginning of the article. You will learn why it is sometimes more advantageous to take out a mortgage, although you have your own resources for the property. They will also advise you where to find suitable apartments to buy. And you will find out how to start investing in real estate with a minimum of your own funds.
Money is (not) talked about
Series for women about finance. Moderator Míša Raková discusses a variety of financial topics with her guests – from the family budget to marital property and investments. Hear practical tips on how to manage money better.
The podcast is published every Tuesday and you can listen to it on Podcasty.cz or in podcast applications such as Spotify or Apple Podcasts, where you can Money is (not) talked about and subscribe.
