Real Estate /
People who bought in Katowice Oak teraces phase I and phase II [102]
PS boys - you may be new to the Polish market but Polish tenants...
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IMHO+ Will have a wealth of 1 and 2 bed apartments in Katowice finished to a very high standard to choose from, including scores coming on the market from O.T.
+ Are not in a position to afford to rent these high end apartments.
+ If they are able to afford such apartments they would opt to live in a very nice house in the suburbs, not in the centre of Katowice. Katowice is not Wroclaw, or Gdansk, or Krakow, or Warsaw. It is Katowice.
I think that the standard of Wroclaw Boy's finish is a serious upgrade from the many apartments that I have seen in Poland, and well represents what the typical tenant is able to afford, and would find attractive. But Eleanorconner does have a good point, O.T. is at the highest end of the Katowice market, and the finish should reflect that. I just don't believe that all of these high-end tenants exist.
But this is Oak Terraces. What you will end up with is an even bigger debt
Agreed. So your options are:
1.) A high-end finish, which can compete with other properties on the market, but will never produce a reasonable net yield on the property. The cost of this fit-out you may never recover.
2.) A mid-range finish like Wroclaw Boy's, which prospective tenants will pass over.
3.) Leave the apartment in black finish w/o tenants for a few years and hope that the sales market recovers.
With option 3 you will have a much better chance of selling a shell apartment, you won't dump any more cash into a property that you may never find a tenant for, and you won't have to spend all of the time and energy and resource over the next 5 years worrying about tenants, laws, mgmt agents, estate agents, solicitors, translators, utilities etc in a country that you don't live in or even speak the language.
Do the hard math on this. What is an honest vacancy rate? What are the chances that your tenant stops paying rent? (Do you even know how to evict a Polish tenant?), What will your tenant mgmt fees be? Building mgmt fees? How much will you pay an estate agent to find a tenant?
So maybe you finish the apartment and do make a monthly net yeild of £125, will this make much of a dent on your interest payments?
When you are in a hole, stop digging.Good Luck