Real estate investment as an income option

Bc. Tomáš Fischer

Master's thesis

Abstract:

Investment to the real estate is one of the way, how to invest funds for appreciation. The option to choose a real estate market is a very popular and frequent variant of investors, because this investment is appreciating slowly but is a very low risk investment. The real estate market has been experiencing significant price increases in recent years, and this thesis has focused on this. The basis of the thesis is to find out if the investment property is a good investment and it pays off. The biggest part of the work is focused on investment in real estatein a certain part of Prague city centre and its return. The first option was to choose a long-term rental variant, where was it buys the apartment and to find out how quickly and if this investment could be returned. I did the same with short-term rentals, which in recent years have become a major power of the property market, which was previously intended for longterm rentals only. The thesis shows that, the investment variant on the real estate market is the right one. Because they are either short-term or long-term rental options, they are profitable for the property owner and bring a positive profit to the investor, after deducting all costs andtaxes. It is still better to use the property for short-term rental method, but with the coming of new laws for this type of short time rental method, can be this difference reduced, even completely erased in the future. Real estate rental will still be profitable, but the rate of return will not affect by which method the property is rented.

Keywords

Real estate market, investment, rent, mortgage loan, return, Airbnb, short-term rent time, long-term rent time

Language used: English

Date on which the thesis was submitted / produced: 29. 3. 2019

Thesis defence

• Supervisor: prof. Ing. Luboš Smutka, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management