Investing in real estate 2019 – how to start investing in Poland

Investing in real estate is one of the most trusted sources of income. However, not everyone has the money to invest in housing. We will tell you how much you should earn to allow yourself to invest in real estate, how much your flat is in Poland and what type of real estate is best to invest in.

How much you need to earn to afford real estate investments in Poland

How much you need to earn to afford real estate investments in Poland

The “Insider” edition carried out an interesting research. As an example, a standard mortgage loan for a period of 25 years in the amount of 4.05% per year was used, with an advance payment of 10%. Calculated what kind of income you need to have to buy a standard 2-room apartment with an area of ​​55 square meters. The results of the calculations were distributed as follows:

How much does a flat in Poland cost?

Forbes magazine conducted a survey and compared housing prices in various cities in Poland. Warsaw turned out to be the most expensive city to buy a flat (PLN 7507 per square meter). Cracow (PLN 6,364) and Gdańsk (PLN 6107) are behind her.

The “Insider” edition carried out an interesting research. As an example, a standard mortgage loan for a period of 25 years in the amount of 4.05% per year was used, with an advance payment of 10%. Calculated what kind of income you need to have to buy a standard 2-room apartment with an area of ​​55 square meters. The results of the calculations were distributed as follows:

In a flat what kind is worth investing in Poland in 2019

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We advise you to choose small premises in new housing estates or in tourist centers, all others lose competition with shopping centers. In addition, it is good to pay attention only to objects that have already been leased on the basis of a contract, preferably a long-term one, without the possibility of early termination of the contract.

It is also worth analyzing the tenant. It’s best when it’s a well-known network company. Otherwise, look for a tenant who rented one property within a few years and paid the amount via a bank account and therefore can confirm his own payment history.

The performance of street-retail facilities varies from 6% to 9% per annum, and with taxes even less – 4-7%. The profitability of more prestigious facilities in the historic center is lower, but the growth potential is much larger than the price of the property itself, and the liquidity is high.

Efficiency: from 4% per year. As practice shows already a year after the opening of the office center, it is possible to sell the building for an additional one and a half times its initial price.

A popular strategy in the last two years is the construction of an office center in accordance with the standards of well-known international management companies, with a preliminary agreement on exclusive management and searching for tenants. The minimum area is 5,000 sq m. After the tenants start work in rented premises, they can be sold to an investment fund or fund whose profile is investing in real estate in Western Europe, especially in Germany and the United States (Real Estate Investment Trust). In this case, buyers will be interested in even profitability of 4%.