Buying the top apartment at U baterie 43, Praha 6 — business plan

The family-in-law owns 2 of 3 apartments in the building. The top floor is being sold by the third owner. This tool models whether buying it and renting it out can pay for itself, given the family's mixed financing (in-laws + Arthur's cash + a possible intra-family loan + an optional bank mortgage). Every assumption is sourced inline — click any [ref] to verify.

Last data refresh: 2026-05-04. Only sources from the past ≤ 3 years are admissible.
1 EUR =CZKverify
seeded 30 April 2026

1. Inputs

Apartment
m²
CZK
≈ €821,839

District median CZK 182,000/m² × 110 m² = CZK 20,020,000

District rent benchmark[deloitteRentIndex]CZK 470 /m²/mo
Implied gross monthly rent (medium scenario)CZK 51,700
District sale benchmark[investropaPragueDistricts]CZK 182,000 /m²
Financing stack
CZK
≈ €164,204
CZK
≈ €41,051
Total cashCZK 5,000,000≈ €205,255
CZK
≈ €82,102
%
yr
Total family loansCZK 2,000,000≈ €82,102
5.2%

Hypoindex April 2026: 5.18 % (5y fix, 80 % LTV).

25 years
Bank principal neededCZK 13,027,000≈ €534,770
Total cost (price + CZK 7,000 fees)CZK 20,027,000≈ €822,126

2. Long-term lease vs short-term let

Side-by-side, both strategies on the medium scenario. Pros / cons and headline KPIs.

Long-term leasemedium scenario

12-month rental contract with a vetted tenant; rent indexed annually to CPI.

Year-1 gross rent
CZK 620,400
Gross yield[investopediaGrossYield]
3.1%
Year-1 net cashflow
-CZK 527,849
Cash-on-cash Y1[investopediaCoc]
-10.6%
cash invested: CZK 5,000,000
NPV (term)[investopediaNpv]
CZK 1,106,495
IRR[investopediaIrr]
409,500%
Break-even vacancy
0%
Y1 net cashflow → 0 above this %
Pros
  • Steady, predictable cash flow — matches the family motivation (control over neighbour, low management).
  • Simpler taxation: §9 income, 15 % flat with optional 30 % lump-sum expense (cap CZK 600 000).[pwcCzIncome]
  • Low operating burden — no cleaning, no platform fees, no daily turnover.
  • Lower vacancy in Prague: tight supply keeps re-letting periods short.[deloitteRentIndex]
Cons
  • Lower gross yield than short-term let, especially in residential Prague 6.
  • Rent indexation capped by NOZ rules; tenant protections favour the renter on eviction.
  • Currency mismatch if rent is CZK but the family thinks in EUR.[cnbFx]
Short-term let (Airbnb-style)medium scenario

Nightly stays via Airbnb / Booking. Higher gross, higher turnover and operating cost.

Year-1 gross rent
CZK 547,875
Gross yield[investopediaGrossYield]
2.7%
Year-1 net cashflow
-CZK 716,555
Cash-on-cash Y1[investopediaCoc]
-14.3%
cash invested: CZK 5,000,000
NPV (term)[investopediaNpv]
-CZK 1,898,963
IRR[investopediaIrr]
409,500%
Break-even occupancy
99%
Y1 net cashflow → 0 below this %
Pros
  • Higher gross income per m² in Prague tourist seasons.
  • Flexibility — block dates for family use without breaking a tenancy contract.
  • Easier to exit: no fixed-term tenant in place when selling.
Cons
  • Treated as business / §7 income — higher administrative load (trade licence, VAT registration if turnover > CZK 2 M).[pwcCzIncome]
  • Operating-cost ratio 22–35 % (cleaning, platform fees, utilities, linens, dynamic-pricing tools).
  • Vacancy / occupancy risk much higher; sensitive to seasonality and regulation changes.
  • Prague has been tightening short-term-let rules; verify Praha 6 municipal restrictions before assuming long-term legality.

3. Worst / Medium / Optimistic

Strategy:
Worst caseworst
Y1 net cashflow
-CZK 799,044
NPV[investopediaNpv]
-CZK 10,052,885
Gross yield[investopediaGrossYield]
2.6%
IRR[investopediaIrr]
409,500%
Medium casemedium
Y1 net cashflow
-CZK 527,849
NPV[investopediaNpv]
CZK 1,106,495
Gross yield[investopediaGrossYield]
3.1%
IRR[investopediaIrr]
409,500%
Optimistic caseoptimistic
Y1 net cashflow
-CZK 381,490
NPV[investopediaNpv]
CZK 24,215,850
Gross yield[investopediaGrossYield]
3.3%
IRR[investopediaIrr]
10.8%

4. Projection

Scenario:
Annual cashflow (years 1–25)
Debt schedule
Sensitivity (±20 % per input → NPV impact)

Known gaps to fill

  • Asking price for U baterie 43 is currently a derived placeholder (district median × size). Replace once the seller quotes.
  • Insurance default is a placeholder. Get a real CZK quote from Allianz / Generali / Kooperativa.
  • SVJ contribution comes from the actual building's SVJ resolution — replace with the real figure for U baterie 43.
  • Prague 6 sale price is from a secondary aggregator. Cross-check against the latest Deloitte Real Index PDF before commitment.
  • STL ADR is a stress band, not a market quote. Validate with AirDNA / Inside Airbnb for the U baterie cluster.
  • Tax model assumes CZ tax residence. For a French-resident owner add the FR–CZ treaty top-up — out of scope for v1.

Sources (21)

  1. [cnbRepo] ČNB — Bank Board decisions (2W repo rate)data as of March 2026· retrieved 2026-05-042W repo held at 3.50 % since May 2025; reaffirmed March 2026.
  2. [hypoindex] Swiss Life Hypoindex — average offered CZK mortgage ratedata as of April 2026· retrieved 2026-05-04April 2026: 5.18 % (5y fixation, 80 % LTV). March 2026: 4.89 %.
  3. [hypoindexApril2026] Prague Daily News — Hypoindex April 2026 (mortgage rates jump to 5.18 %)data as of April 2026· retrieved 2026-05-04Secondary source; cite alongside hypoindex.cz primary.
  4. [cnbFx] ČNB — Central bank exchange-rate fixing (CZK/EUR)data as of 30 April 2026· retrieved 2026-05-04Fixing: 1 EUR = 24.360 CZK on 30 Apr 2026.
  5. [csuInflation] ČSÚ — Consumer price indicesdata as of March 2026· retrieved 2026-05-04CPI YoY March 2026: +1.9 %. 2025 average: +2.5 %.
  6. [ecHicpCz] European Commission — Economic forecast (Czechia, HICP)data as of 2026 forecast· retrieved 2026-05-04HICP forecast 2025: 2.3 %, 2026: 2.1 %.
  7. [deloitteRealIndex] Deloitte Real Index — CZ flat resale prices by districtdata as of Feb 2025· retrieved 2026-05-04Prague avg 139,900 CZK/m². District splits in full PDF.
  8. [deloitteRentIndex] Deloitte Rent Index — Prague rent CZK/m²/modata as of Q3 2025· retrieved 2026-05-04Q1 2025: 438 CZK/m²/mo; Q3 2025: 456 CZK/m²/mo. Central > 490.
  9. [csuHpi] ČSÚ — Prices of real estate (HPI)data as of Q4 2025· retrieved 2026-05-04Official House Price Index by region.
  10. [mfRentMap] MF ČR — Cenová mapa nájemnéhodata as of Q4 2025· retrieved 2026-05-04Quarterly rent + sale-price map by cadastral area.
  11. [investropaPragueDistricts] Investropa — Prague housing prices (April 2026)data as of April 2026· retrieved 2026-05-04Secondary aggregator. Prague 6: 146 000–218 000 CZK/m². Verify against Deloitte before commitment.
  12. [pwcCzIncome] PwC Tax Summaries — Czech Republic, individual income determinationdata as of 2025 / 2026· retrieved 2026-05-0415 % / 23 % bracket; 30 % lump-sum expense capped at CZK 600 000.
  13. [pwcCzOther] PwC Tax Summaries — Czech Republic, other taxesdata as of 2025 / 2026· retrieved 2026-05-04Real-estate tax annual basis; VAT 15 %/21 % on new builds.
  14. [portalGov] Portal.gov.cz — tax liability for property purchase / ownershipdata as of 2025· retrieved 2026-05-04Confirms RETT abolished from 1 Dec 2019 (Act 386/2020 Coll.).
  15. [spravabd] spravabd.cz — Fond oprav contribution guidancedata as of 2024· retrieved 2026-05-04Industry guidance: typical 15–20 CZK/m²/mo, range 10–50.
  16. [bakerMckenzieCzAcq] Baker McKenzie — CZ real-estate acquisition guidedata as of 2024· retrieved 2026-05-04Notarial signature ≈ CZK 70 / sig; cadastre filing CZK 2 000.
  17. [investopediaPmt] Investopedia — Loan payment (annuity) formuladata as of 2024· retrieved 2026-05-04Standard fixed-rate amortising loan PMT formula.
  18. [investopediaNpv] Investopedia — Net Present Value (NPV)data as of 2024· retrieved 2026-05-04
  19. [investopediaIrr] Investopedia — Internal Rate of Return (IRR)data as of 2024· retrieved 2026-05-04
  20. [investopediaGrossYield] Investopedia — Gross rental yielddata as of 2024· retrieved 2026-05-04
  21. [investopediaCoc] Investopedia — Cash-on-cash returndata as of 2024· retrieved 2026-05-04