Even a Small-Volume Investor Can Behave Like a Fund, as Stated at the BIGMONEY Conference

According to all panelists, Czechs see real estate as a guaranteed investment and a pillar of their retirement income. “Despite this positive sentiment, I’m repeatedly surprised by how few investors can correctly calculate the return on equity when buying real estate. Even a small-volume investor with a modest portfolio can behave like a fund and effectively leverage a mortgage loan through refinancing,” said Prokop Svoboda, while speaking at the panel. 

“We live in an inflationary environment, and for this reason alone, real estate prices will rise,” said the owner of Svoboda & Williams. “After the dot-com bubble burst at the beginning of the millennium, capital flowed into real estate. Now we can expect a similar scenario with the technology bubble relatively soon,” he predicts.

All of the panelists agreed that viewing real estate from an investment perspective undermines the established media narrative that housing in the Czech Republic is unaffordable. “Excellent returns can be achieved thanks to the leverage effect, and by chaining together mortgages on two or three smaller investment apartments, our clients are able to achieve an income that will secure financing for the purchase of a home for their family,” said Robert Sedláček, co-founder of the Spilberk investment fund.

The real estate panel speakers also discussed the prospects for institutionalized rental housing and opportunities in Dubai’s currently strong real estate market growth, as well as new perspectives on real estate investment from an intergenerational perspective. One unique tool in the Czech environment is the Refugium project, a land portfolio of environmentally valuable locations that Prokop Svoboda is developing. 

BIGMONEY, a new platform for investors, entrepreneurs, and experts from the Czech Republic and abroad, is building on the successful REAL ESTATE FORUM conference, which was organized in Brno by HAVEL & PARTNERS for five years. Due to the great interest in it, the organizers decided to expand the conference. On October 15th, in addition to real estate investments, several stages also featured discussions on managing the assets of traditional aristocratic families, the private equity market, alternative instruments, and the risks and opportunities offered by cyber security.