It depends on how much time and effort you can devote to your project. Building a new home or refurbishing an existing apartment will naturally take more time and effort than a purchase.

If you are building a new home or refurbishing an apartment, you will need to find a good general contractor. The contractor may agree to cover the permitting aspects of your project — you will need two permits [building and occupancy] for most refurbishments and a third permit [zoning] for new construction — but this will cost you extra.

Pick your contractor very carefully and seek competent legal advice to ensure that your contracts are properly structured, particularly with respect to payments and warranties. Always hire a construction supervisor for your project who will check that things are being built according to design and with the correct materials and act as your cost surveyor. Try to withhold an adequate amount of money for a three- to six-month period following completion to entice the contractor to correct possible defects.

Be careful if you do not have your project fully designed prior to retaining a contractor. Most contractors are happy to accept subsequent additions or changes to your design, but they will charge you for them, often at prices significantly higher than those offered for the initial design. You will have little bargaining power if your house if half-completed and time is running out before you must move.

Buying a finished dwelling will allow you to avoid these issues, but you will pay a premium for the time and effort saved. Be sure to keep some money for a period after occupying the premises [usually 60 days is sufficient], so you have time to check that all mechanical and electrical systems are working properly. If the premises include the right to use common space, take care to review how the costs for upkeep of this space are incurred and allocated.

Where should I buy?

There is an old adage that the three most important considerations when buying real estate are 'location, location, location.' I think this should actually be 'location, location, price.' But the point remains that location is a key element in deciding to buy.

Which location to chose will depend on why you are buying in the first place: Is it an investment, or a home for a family with kids? With the former you will want proximity to the city center with good public transport access; with the latter, you will likely want a quiet area with good schools and a park. If you are looking to rent to an expat family with kids, you should look at areas near the international schools [Prague 4 and 6].

Can I be a developer?

Many people with a little extra cash have ambitions to become a property developer. If you are in this position, then the best advice I can give you is to start small and do your homework. In my experience, most people are amazed to discover that real estate development is not simply buy a property, design a home, hire a contractor and sell at a profit. Doing it properly requires knowledge, perseverance and thoroughly planned execution. Having a good lawyer helps as well.