Property investment in Wroclaw Poland


LG are starting their production soon i think.

Have you looked at getting a place over there ?
 
I think wroclaw ponznan are good bets but when i go over next ill be buying land as i reckon apartments are a waste of time in that there is hassle with them, tenants etc.

Im in for the 20 year scenario based on current information and growth is good there and anticipated to continue to be good for quite some time.

Have a place in Warsaw alright but will be looking solely at land from now on.

Poland is not going to be as interesting as some of the tiger economies out there, by no means but its a steady eddie job slowly but surely.
 

I do realise that Poland has similar tenant rights as Germany. Never really considered land though. Are u looking at land near the city or in the outshirts. Guess its an ideal investment in that you buy land for cash and do nothing (no hassles) and sell on in 15-20 years.
 
Either or but id like land as close to a subway station as is possible.

Wouldnt be paying cash would probably have to put up 40% of the cost of the land and then service a mortgage on other 60%.

less hassle then tenants etc i wouldnt mind the tenancy law issue its at significantly rare occurance over there if its the law im thinking off..
 
A friend of mine who has already got property in Poland (Krakow) has also advised me that Wroclaw might be a good investment
Mentioned the fact multi Nationals moving in , Ryanair hub etc , and that property prices havn't raised yet as much as prices have in towns such as Krakow and Warsaw
In regard to getting Mortgages he mentioned getiing a mortgage in swizz franc u will at present get a rate around 3.7%
Euro = 4.8%
Zolt = 5%
U can get these in Polish banks , for investmet they give u max 80% over 20yrs
I plan to look further into all of the above myself and will let u know how I get on
 
if you borrow in a non-local currency then you run additional risk as your asset & liability will be mis-matched in currency terms.
 
Yep totally right Johnboy, my friend didn't seem to to worried by this maybe he felt the risk was small or he was being full hardy, I was going to get further advise on these options myself before procedding and would advise anyone else looking into doing this to do likewise
 
The Badger said:
Mentioned the fact multi Nationals moving in , Ryanair hub etc , and that property prices havn't raised yet as much as prices have in towns such as Krakow and Warsaw
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Yeah heard Ryanair are thinking of making wroclaw its eastern european hub.
 
Don't underestimate Ryanair! A recent ESRI report mentioned 'the Ryanair effect' on property in cities near Ryanair / cheap airlines' hubs. It's been noted in Italy as well.
 
JohnBoy said:
if you borrow in a non-local currency then you run additional risk as your asset & liability will be mis-matched in currency terms.
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This is very true as I've been watching the zloty rate over the last few weeks - went from 4.04 to 3.88 then back to 3.9's. Such a movement on a 100k investment adds up.

Timothy
 
Any one have any experiences with property secrets?

Wroclaw sounds very good and ticks all of my criteria - What is the situation regarding tenants and are there any heavy selling costs?


Thx
 
I used Property Secrets for an off the plans development in Krackow. I found them very good. They hold your hand through the pruchase process. From what I can tell, they secure a (5% to 10%)discount from the developer on the list price due to the large number of units they reserve. They then claw most of this back through their fairly steep finders fee (About 4k sterling). They use one lawyer in Poland for all their deals and get a good deal. Seemingly getting contracts translated in bulk saves a fortune.
If you want to use their service, you really got to be on the ball when it comes to securing the unit you want. They usually send an e-mail asking you to confirm your interest. This has to be done immediately, if you wait 30 mins your unit will be gone. Its on a first come first serve basis.
 
Thanks for your response BK

Comforting to know they hold your hand as this is my first foray in Poland.

Are there any other pitfalls or risks that you think I should watch out for?

Any advice re what type of mortgage (eg currency wise/term/fix or variable) that I should be thinking about ?

They quote a growth rate of around 13% pa which I think is optimistic for the next 5 years but who knows!

Do you use their lettings and management service and how effective is this?

Thank you for your time.
 
There is talk that the polish stamp duty is going to rise in the next two years, PS included in my contract that if the development is delayed beyond the date of increase, the developer takes the hit.
Most mortgages are taken out in CHF as opposed to PLN. I have yet to look for finance as completion date is some time away.
I don't think 13% is unrealistic. Prices seem to be rocketing at present, long term growth looks good.
I don't think I'll use their letting & mgt services. I'd prefer to use seperate companies that specialise in ether or.
Overall I'm happy with the service they've provided so far.
 
Thanks BK

I'v done a lot of due diligence and given that I'm already getting a 10% discount I have decided to buy in wroclaw.

The story is compelling with LG creating 5000 jobs alone.

Despite the yields not being so great (you dont get rich on rental income) I believe the growth figures.

Also, having an airport in the city with further plans for redevelopment is great.

There are lots of hospitals and unis in the area so my brand new 1 bedroom flat should be constantly let out.

I'll let you know how I get on along the way!
 
I am also Planning to buy an Apartment through Property Secrets in Poland (Poznan). Glad to hear the experiences of Actybod and BK0001 are good so far. How did you pay the 10% deposit and Stg fees? Is there a way of buying/transferring the Stg and PLN that is more cost effective than just using AIB?
 
Dubliner16 If your pop-up blocker is on then you will need to hold the "CTRL" key down while downloading. After you have downloaded them then you have to unzip them. You will need winzip to do this.
 
StoryBud said:
Dubliner16 If your pop-up blocker is on then you will need to hold the "CTRL" key down while downloading. After you have downloaded them then you have to unzip them. You will need winzip to do this.
Click to expand...

Thanks StoryBud I have unzipped the files already in WinZip but it keeps saying no file found when using Winzip, so I am at a complete stop.
 
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