I have been finally arranging my mortgage for my unit on Avenium in Prague- I notice that wrt UK BTL, CEE returns are truly astonishing, well done PS!

However, notable with the Czech Rep, PL and the Slovak Rep is the extent that devaluation of the £ has enhanced the capital growth really as much again as the rise in values of the property in local currnecy terms. eg now Kcs 32 to £1 while in May 2007 a year ago it was Kcs 41 to £1, representing a 28% currency appreciation alone.


Obviously Rumania looks as though it is different with the relative decline in the Leu, but I don't know the sutuation in Bulgaria. Slovakia will soon be affected by euro convergence. I would love any comments about currencies.

The side effect for me, unwanted is that with the increase in Czech Interest rates and the Kcs, is that I am in deeper negative territory to retain my Avenium unit, because the gap in my projected rental receipts and mortgage payments has increased, and I project that actually retaining my unit will leave me £5k negative for the whole year. Thus, if there is a large sign of the growth rate in Prague 7 slowing up, it might be better to sell and reinvest elsewhere in CEE

Hi Charles,

With regards your comment on Romania being different, I accept that the RON has declined recently, but all the property transactions that I have been involved in, in Romania (except those involving a company) have taken place in Euro. The Euro is the accepted currency for buying and selling land and buildings and so anyone with a portfolio of real estate in Romania will be "comfortable" with the current weak pound.

Rgds