This method of buying real estate is very profitable because you can buy an apartment much cheaper.
The essence of such a purchase is that you acquire real estate under construction. The developer can offer different payment options. Often you pay at the initial stage of construction up to 25% of the value of the apartment, and all other payments the developer splits into two or three stages within 1.5-2 years.
For example, you buy an apartment which costs 110 000 €, pay at once 25% - 27 500 €, and the remaining 82 500 € are split into two payments: In a year of construction - 50 000 €, and at the end of construction - 32 500 €. The amount of payments and due dates can always be agreed with the developer, and very often, the developer extends the payment period. If desired, the remaining 75% of the real estate value can be mortgaged.
So you can buy real estate in the Czech Republic without having in hand the full value of the apartment. And deals with real estate under construction will be more profitable.
It is important to note that the acquisition of an apartment under construction is quite secure in the Czech Republic. A bank that accumulates paid amounts on blocked accounts is the warrant of the buyer's money saving. Only after the construction is completed these funds are forwarded to the developer.