Český Objektiv

The Czech mindset

For decades, people in Czech Republic didn’t have a choice of variety of products. Before 1989, if there was a queue, people would join, in the hope that at the end of it there would be something useful and not too expensive e.g. toilet paper. In comparison today, there is a choice of 10 different varieties of bread rolls in most supermarkets. Many in the older generations argue this choice is not needed and cite that this as just another example of wasteful excess in westernised culture, along with the never ending supply of cheap debt, rising prices and the need to ‘keep up with the Jones’’.

Whilst the above is an example of how things have radically changed, it is still possible to see the old way of thinking creeping out. Picture a typical, modern, young Czech family buying a flat in a newly-built development – they desire the whole package and way of life that they acquire with the property – being status, parking in Prague, guaranteed building work, after sales service, reception areas, security features and even the all important symbol of modernity – a swimming pool [albeit communal in the development].

After purchase, the family are required to sign into a legal entity – ‘Unit owners association’ which decides how much money is going to be spent on repairs and how many people need to form a quorum for decision making. This is run by a few nominated ‘responsible individuals’. The association meets up at least once a year and during the meetings, typically one argument follows another, irrespective of how many participants actually turn up.

Even though the young family knew there was an annual upkeep cost of maintaining their apartment, they soon realise that the cost of maintaining all of the extras is high – higher than they might have been led to believe. This is where the Czech thinking comes in, in trying to ‘save the pennies’. The mother of the young family suggests that all unit owners should wash the stairs in front of their apartments themselves and the father, going for more drastic approach, tries to talk all the other unit owners into draining the [expensive to maintain] pool.

When buying such prestigious developments, it is becoming necessary to not only check all rights and commitments before signing anything, but also undertake some due diligence on likely future demographic profile of neighbours. Czechs have a penchant for showing they are able to reach a particular living standard and demonstrate that they can afford to live in prestigious new developments, alongside the celebrities and foreigners. But would a foreign buyer who uses their luxurious apartment three times a month [and the swimming pool less often] wish to wash the stairs in front of his or her unit?

Developers’ agents believe that the Czech public will get educated and learn from the west. But the jury is still well and truly out on this.