Real Estate /
Current state of the property market in Krakow [135]
Property rentals in the larger cities are booming, 7-8% on residential property is easily achievable and 10% + on commercial is not unheard of and Im taking current property prices into considertaion.
I'm expecting around 4% on my 2 properties and I'm less than 50% leveraged.
Congrats on reasonable assmptions and leverage. But still people are buying and counting on 8-10% yields because "someone told them".
I agree with 6-8% on residential, can be as low as 5. (I won't do 4%)
10% for commercial is high but i think WB was saying "it is not unheard of" (it happens) it's a minority case and generally lower, about 6-8% again.
This is the current situation for people who have found good places in the centre of cities (Zone 1) if you bought years ago it is a totally different story.
I do agree with you nspablo when you say "someone told them",
This is a full time job not Chinese whispers.I have had people from Ireland fly over here for a weekend do viewings and buying three places out of the seven places they wanted to buy but I had talked them out of it.
I do not agree that Poland will go down the drain or that it will not be effected by the world crises, the truth is somewhere in between.
I personally think it is healthy for Poland to reassess lending and prices so that the same does not happen here as in other countries.
I read a lot about how people are going to be coming back from abroad in their droves but I do think it is unrealistic.
Until Polish people can earn as much here as they can in other countries, there is nothing to go back to.
We can again look at Ireland's history, when things went bad in other countries in the past.
Irish people still worked abroad, it was only when it became possible in Ireland for people to earn good money and opportunities were abundant did the population go up, 99% of my friends went back.
People are going to loose there jobs, many have already.
I think a lot of Polish people will continue to seek work abroad because it beats the alternative of coming back, let me rephrase the question, what do they have to come back to?.
Polish unemployment was 20% in 2003
And in certain areas 45%, it was unbelievable.
Poland has been successful the past 6 years and has a long way to go still.
If Poland can get the American multinationals over here it would be of tremendous value.
If/When Ireland is forced by the E.U. to come in to line with the rest of Europe for taxation.
I hope the Americans will come here.
Cheaper wages, property and a very high level of third level education.
Will Polish property prices in 2012 be higher or lower than they are now?
Higher but only if invested wisely.
In Ireland the charity soup kitchens and homeless shelters are bursting with Polish construction workers and trades men who have lost their jobs.
And sleeping in the tunnels in hyde park wrapped up in old cardboard.
I have seen it, I saw Irish people doing the same and I saw Polish people taking their place.
It is a terrible thing, it'd break your heart.
