Real Estate /
property in Lodz - anyone any experience [102]
But Lodz renters will not even be able to give you a yield on 6000 zloty per sqm. Average take home salary in Lodz is less than 2000 zloty, so rent levels are often less than 1000 zloty a month, leaving you with 300 months to cover the capital of a 50 sqm flat. Thats 24 years.
Alternatively your average Lodz citizen would need 15 months full wages to put down a deposit on a 50sqm flat at 6000 per sqm. And then a mortgage for 10,5x earnings.
These are valid points, all Polish people wanting to buy a house/apartment will have to join the mortgage club and spend the rest of there life paying off the loan, they will in effect be working for the banks.
Money is hard to come across and its interesting that some of our properties advisor's who you would think have done pretty well, are the ones looking for cheap places to eat or hotels (how strange). The bottom line is that the average worker is being cut out of real estate and that being the case who is going to buy all those apartments and house? foreign investors!, maybe in sort after locations.
Currently Polish doctors are on strike wanting a 30% pay rise, the government has made it clear that it has no money to give them, This means its is doubtful if real wages will increase in Poland in the near future (ie government employers/people on pensions etc)
Global warming and increases in fuel and power charges will also ensure a slow down in the Polish property market.
What property investors need to understand when reading the increases in the Polish property market is that the increases are averaged out and are greatly inflated due to sales of new houses. By way of example a house in the polish country side has not gone up very little.
I might also add that a lot of English/Irish/US like to go to Poland because it is still very cheap and a pretty safe , these people will go elsewhere when things go up.
