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Informative Articles

A Clothes Encounter In The Business World
Do you ever wonder where all the dress rules have gone? Depending on when and where you are on any given business day, the words "distant past" might come to mind. It's difficult to decide if people don't know what to wear to work or if they have...

Investing in Foreclosures
A foreclosure occurs when the owner of a property can no longer afford the costs associated with it, and the bank or another creditor seizes the property. This is often a result of the owner initiating bankrupcy proceedings. Although it...

Investing in Stocks and the Game of Monopoly
You have permission to publish this article either electronically or in print, free of charge, as long as the author bylines are included. A courtesy copy of your publication would be appreciated. Please email to ...

InvestingInWireless.com Reports: “Communications in Homeland Defense: Wireless is the Way to Go."
For Immediate Release December 9th, 2004 InvestingInWireless.com Reports: “Communications in Homeland Defense: Wireless is the Way to Go." POINT ROBERTS, WA. December 9th, 2004 - www.InvestingInWireless.com, an investor news portal for...

Small Business Q & A: Investing In Son's Business Could Cause A Real Family Feud
Q: My youngest son wants to borrow $5,000 to start his own business. My wife is afraid to tell him no. She thinks we should just give him the money and not expect anything in return. I disagree. He doesn't have a very good track record with...

 
Investing in the Czech Republic - Outside of Prague - Part 2: Olomouc Property

Olomouc is an excellent choice for real estate investors and following is a profile of the city. Those of you who have read my newsletter before know my dispassionate style of presenting things so here are the facts on Olomouc as they may affect investors...

Area: 103.36 km2

Population (latest data December 31, 2003): 101,268

Distance from important European and Czech cities:

City / kms

Brno /   76

Ostrava /   100

Prague /   277

Vienna /   198

Bratislava /   197

Warsaw /   474

Budapest /   389

Berlin /   500

Paris /   1 302



Average monthly salary for Olomouc region (2003): 15 491 CZK

Average monthly salary for Czech Republic (2003): 17 445 CZK

Average monthly salary for Czech Republic (2005 2nd Q): 18 763 CZK

Education: 16% of residents in Olomouc have University level education

Average temperature in January: - 2°C to -4°C

Average temperature in July: 15°C to 19°C



Foreign Investors in Olomouc (by no means comprehensive, only a sampling)

Investor (Country) / Business Activity / Year / Employees (2004)

Nestle Cesko, s.r.o. (Switzerland) /   Production of chocolate and chocolate candies /   1992 /   800

Foundeik, s.r.o. (Spain) /   Foundry /   2000 /   215

M.L.S. Holice, spol. s.r.o. Group Leroy (France) /   Production of alternators; sale, maintenance and repairs of rotating electric motors /   1922 /   770

Mora Aerospace, a.s. (USA) /   Development, designing, production, testing, maintenance, repairs, modifications and construction changes of the aviation technique /   1999 /   640

Mora Moravia a.s. (Slovakia, Hungary) /   Manufacture and sale of cooking technology appliances /   1996 /   640

Senior Automotive Czech, s.r.o. (UK) /   Production of shaped aluminum and steel pipes for the automotive industry /   2001 /   260

SIWE, a.s. (Austria) /   Production of forming, cutting and bending tools /   1992 /   143

TIMKEN Ceska Republika, s.r.o. (USA) /   Production of needle and roller bearings for automotive and engineering industry /   2001 /   523

Skanska DS, a.s. (Sweden) /   Construction of motorways, city roads, parking areas; construction and reconstruction of bridges, sewage systems /   1954 /   185

Exerion Precision Technology Olomouc, s.r.o. (Netherlands) /   Metalworking and assembly of metal-frame structures and functional modules /   1998 /   110

Other Investment News

Schneider Logistics, a leading global logistics company, opened new shared services centre in Olomouc. Thanks to this million euro investment more than 300 new highly qualified jobs will be created here.

"We chose Olomouc mainly for its sufficient supply of qualified people. The new centre will serve customers of Schneider Logistics from all over Europe, which is why our demands, for example on employees' language skills, are high," commented Willem Jan van Vorstenbos, Managing Director of Schneider Logistics in Europe, and added: "Of course we intend to offer employees the most varied training relating to languages, accounting and working with our special software applications developed for processing invoices."

Kappa Packaging

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opened a new plant for the production of packaging from backed corrugated board in the industrial zone Olomouc - Holice today. The new plant into which Kappa invested over 11 million euro will create more than 50 new jobs.

"The main factors behind the decision-making on the establishment of the new plant were the following: location in the heart of central Europe, know-how and skills of the original employees of the local plant Kappa Empack and - last but not lest - support of governmental organizations and representatives of local government," says Zden?k Suchitra, director of the Kappa Packaging plant in Olomouc.

The multinational company Head has decided to start the manufacture of skiing shoes in Litovel, Olomouc region. Head has acquired a factory in Litovel by reason of quick production start. Head plans to invest 2 million euros and create 120 jobs in the first phase.

Gerald Skrobanek, CEO Head Sport s.r.o. explained the reasons for this decision: "The advantage of the Czech Republic is mainly better logistics, but also higher labor productivity. Litovel offers an advantageous location and mainly experienced workers for our production technology. Mainly thanks to the very successful operations in the Czech Republic, the top management at Head decided not to move to the cheaper labor markets further to the East of Europe, but utilize the better infrastructure and eruditeness in the Czech Republic." Olomouc Property Figures

Apartment Rentals in CZK per month (2004 3rd Q): (average range - exceptions can be found either way)

Size /   CZK/month

1 + 1 (studio or bachelor) /   4 000 - 5 500

2 + 1 (1 bedroom) /   5 000 - 7 000

3 + 1 (2 bedroom) /   6 000 - 9 000

4 + 1 (3 bedroom) /   6 000 - 10 000

House Sales in thousands of CZK per flat (2004 3rd Q): (average range - exceptions can be found either way)

Size /   New Build /   Heritage Building

1 + 1 (studio or bachelor) /   650 - 950 /   500 - 700

2 + 1 (1 bedroom) /   800 - 1 200 /   700 - 900

3 + 1 (2 bedroom) /   1 300 - 2 500 /   900 - 1 700

4 + 1 (3 bedroom) /   1 800 - 3 000 /   1 200 - 2 100

Property Examples (common closing prices are commonly 5 - 10% less than the asking price)

1 ˝ bedroom (2.5 + 1) flat right in the middle of the old town section. Beautiful heritage building with view to the square. New kitchen and kitchen cupboards. Hardwood flooring and tall ceilings. Asking price: 2 050 000 CZK

1 bedroom (2 + 1) completely reconstructed close to the center section of town. Completely reconstructed. 52 m2. Balcony. Asking price: 1 350 000 CZK

2 bedroom (3 + 1) newly built flat on the top floor of a heritage building in the historic center of Olomouc. 88 m2. Balcony. Asking price: 2 266 000 CZK

As we've emphasized before, at Czech Point 101 we are not going to over-inflate figures or try to sell you on hyped up facts. Our goal is to inform you to make the best investment decisions possible.



Recommended Reference Websites



Olomouc tourism website Olomouc city website

The sources for this newsletter include the Olomouc city and CzechInvest.

About the author:

Nathan Brown is the owner of Czech Point 101, a business which helps buyers find their perfect home in the Czech Republic and complete the purchase. Current projects in which Mr. Brown is directly involved include commercial and residential property investments and a portfolio of individual and corporate business interests in Czech Republic and North America.