Plan B as a better plan

Investing abroad is becoming an increasingly popular option for Czech investors who are looking for ways to effectively evaluate their savings. But why is this "Plan B" better than investing in the Czech Republic or leaving money in the bank? Here are the key reasons:

1. Higher returns and stability

Investments in foreign real estate often offer higher returns than the domestic market. For example, in attractive locations such as Bulgaria or Spain, annual real estate appreciation is around 7% pa. In addition, regular rental income of up to 4.5% pa can be achieved. Compared to interest rates on Czech savings accounts, this is a significantly more interesting option.

2. Protection against inflation

Money deposited in the bank loses value due to inflation. Conversely, investing in real estate not only protects the value of your capital, but can also increase it in the long term. Moreover, inflation often affects the value of real estate abroad favorably, which leads to an increase in prices and at the same time the appreciation of your investment.

3. Diversification of risk

Investing in one market means that you are exposed to the specific economic and political risks of that country. Foreign real estate will help you spread the risk and minimize the effects of any crises in the Czech real estate market.

4. Attractive destination for own use

Buying a property by the sea can serve not only as an investment, but also as a great place for relaxation and vacation. Spending the summer in your own apartment on a sunny beach instead of paying for expensive hotels is tempting. At the same time, you will save considerable sums on accommodation and you can continue to rent out your property when you are not using it yourself.

5. Legal and tax benefits

Some foreign destinations offer more favorable legal and tax conditions for investors. For example, in Bulgaria the tax on rental income is lower than in the Czech Republic and the administrative processes are simpler. This makes investing more transparent and less bureaucratic.

6. Faster value growth

In emerging areas such as Bulgaria or the south of Spain, the potential for property value growth is high. These destinations are popular not only among tourists, but also among locals, which contributes to the demand for real estate and consequently to the increase in prices.

Why not keep the savings in the bank?

Interest rates on savings accounts in the Czech Republic often cannot even cover inflation. Money in the bank thus loses its value every year. Plus, fees and interest taxes can reduce your balance even more. Investing in foreign real estate not only brings better returns, but also more control over how your money works.

Plan B - investing in foreign real estate - is a great way to achieve higher appreciation, diversify risks and at the same time enjoy the benefits of property ownership in attractive locations.