Real Estate / Real Estate hits a new low in Poland [86]

Ozdan,
I was relating irresponsible to creditworthy,i do however see your point although i dont completely agree with it.It is a gamble and as long as people are aware of the possible consequences then it is their choice to make.

Real Estate / Real Estate hits a new low in Poland [86]

Polish bank lending on property has never been irresponsible.Their criteria has always been strict unlike the uk.The point i was making is that even if you find a good property investment in Poland as a foreign investor and should you be lucky enough to obtain the finance for it, the extra margin and costs built into the finance can make a good deal a bad one

Real Estate / Real Estate hits a new low in Poland [86]

There are some very good property deals around in Poland at the moment.It is financing them that is the problem.Polish banks are taking the piss like most others in Europe.

Real Estate / Budimex Murano development (central Warsaw) Phase I [38]

Hi Ash,
As a property investor in Poland myself,although not in your development ,i have read the replies to your subject with interest.
I would like to say that there is nothing wrong with trying to renegotiate your contract and this has nothing to do with honour or integrity.A business deal is all about win win.If either party is unhappy with the arrangement then their should be scope to renegotiate and if that fails,an attempt to sever the agreement is the natural course.

Which ever route you take you need to get yourself an English speaking Polish solicitor,if you dont know one ,i can put you in touch with mine.

A couple of things you may want to consider.

Check to see if your contract has a valorization clause within it.Some of the largest Polish developers have this.A decision by the Polish consumer protection board just before christmas may give you some ammunition if your contract contains this.

Some Polish banks base their lending on loan to value ie Millenium, others on loan to cost price Metrobank.If your borrowing is based on value then you may have a funding problem.You could use this when renegotiating with the developer.

Good Luck

Real Estate / property in Lodz - anyone any experience [102]

Zeslaw,
I can probably help you in Lodz.Send me an email,c.kaciniel@ntlworld.com

Real Estate / Interest Rates for Home loans In poland [39]

Hi Paris Jazz,
I have some coming up late next year with JW .Gorczewska Park

Real Estate / Interest Rates for Home loans In poland [39]

Hi andy b,
It is very straightforward obtaining a mortgage in Poland for one or two properties if you can demonstrate a regular income and affordability.It is a different kettle of fish if you are self-employed,your application is asset based,or involves multiple applications.The Polish banking sector has developed significantly in the last 18 months ,but has someway to go in meeting the needs of serious property investors without ripping them off.

Real Estate / Interest Rates for Home loans In poland [39]

Hi Paris Jazz,
Where are your soon to complete properties in Poland ?

Real Estate / Interest Rates for Home loans In poland [39]

Hi Andy b,
Thanks for the answers.The reason i asked those questions was to illustrate the fact that Metrobank is not necessarily a last resort.I can have a LTV of 90% with them whereas with 2 of your options i would have to find an extra10% from somewhere and your second option is more expensive with the 90% LTV than i am getting with Metrobank.In addition because of my 5 years interest only ,my repayments monthly will be lower than all of your examples on the same amount borrowed.This means that my yield will be higher as a result.I believe most serious BTL investors would go for the Metrobank option compared to the examples you gave if given an option.

Real Estate / Interest Rates for Home loans In poland [39]

Hi Andy b,
A couple of questions ?

1st bank offer- If i wanted a mortgage in USD and i had paid the developer hypothetically a 10% deposit on a 400,000zl off plan property a year ago that had not risen in price ,does its criteria mean that i would have to find another 40,000zl

or at current exchange rates ,approxamately £10,000 from my own resources to put down before the bank would grant me a mortgage if the property was ready for completion ?

2nd bank offer- Is this a better interest rate in PLN than if you borrowed from Metrobank in CHF ?

3rd bank offer- ditto 1st question

Final question- Would you say that the monthly mortgage repayment on 4.54%, 7.46% and 3.83% repayment mortgages from above will be lower than a interest only mortgage at 5.6% ?

Real Estate / Mortgage prices and rates in Poland [28]

Hi Vincent,
I have no direct experiance of rednet myself,but you can google Property Secrets and join as a lite member that will give you access to the forum.You will find a lot of threads regarding Polish properties including mortgages,accounting,legals,fitouts etc, although most of the forum relates to off plan new builds.Rednet are discussed many times by investors in Poland and you can form your own opinion.You can go back in some cases many months on one particular thread .I forgot to mention that it costs nothing to be a lite member ,but should you wish to read detailed reports by the company then you would need to become a pro member which will cost £7.99 per month.

Real Estate / Mortgage prices and rates in Poland [28]

Hi Daniel,
The situation you are painting is not so straightforward.As i have already mentioned,the rate with Metrobank drops to 5.6% within a short period of time.The percentages you quote are accurate if you are employed,but never in a million years will you get those rates if you are self-employed.Metrobank is the only bank that i am aware that offers a 5 year interest only period ,although it is possible that Raiffeison may also do this but at present i am not sure.The redemption charges are of little consequence since the CGT that you would pay if you sold up without reinvesting within 5 years and any additional charges incured on remortgaging make the 5 year interest only term worth its weight in gold ,and that excludes the increased yield you would make compared to a repayment mortgage.

My final comment is that i regularly trawl the property secrets forum and the comments i have read regarding the rednet group of companies ,do not fill me with confidence.

Real Estate / Mortgage prices and rates in Poland [28]

I have just had a number of mortgage applications accepted by Metrobank (a subsidiary of Noble ).Loan to value or in reality loan to cost price 90-10.Interest only period 5 years .CHF base.6.6% until registered in loan book( 1-3 months )then 5.6%.Have to pay a one off higher lending charge ,but would not pay this if i put down 25% deposit.From a buy to let perspective the figures stack up and i will be in a positive cash flow situation,i am not unhappy.I have also been able to leverage 10% (put down 20% deposits originally).I use a broker who i am very happy with ,it saves a lot of time and hassle for reasonable cost.

Real Estate / Advice on best interior fit-out company in Krakow: mamdom or JoshuaMills? [32]

Hi,
I have a fitout operation in Poland but unfortunately we only cover Warszawa,Lodz and Poznan.If anybody has a fitout requirement in those areas give me a shout.

Real Estate / Global Housing Collapse Spreads East [8]

There are still many great deals to be had,especially if you have some cash.There are many Polish speculators as opposed to investors that are desperate to flip for whatever reason and have only two or three months left before completion in a good location.If they do not complete then the developer will usually give them their deposit back and sell the property at a higher price .They might have had this deposit invested for 18 months and be looking for someone to pay them the initial deposit in cash plus for examples sake 70000zl in cash as profit.The property is then reasigned and the buyer applies for a mortgage in the normal way.Because they are desperate to sell you can offer them their initial deposit in cash plus 15000zl profit in cash because some profit is better than no profit at all ,and you walk away with a property based for examples sake on late 2006 prices.

The main problem for some investors is yet to come.Those investors that bought in the second half of 2007 in shite locations and developments and grossly overpaid for their units will find that when they are completing and applying for mortgages the valuation their lender puts on the property will mean that they have a serious shortfall to resolve I forgot to mention that i am only talking about new build off plan flats and apartments.

Real Estate / Price per sqm in Lodz [9]

7000 looks far too much.Who is the developer and what road is it located on?

Real Estate / Deals available from Polish property developers [40]

I believe you are sock on Eleanor.
The newspaper article is ridiculous.The journalist had unrealistic expectations in the first place.Can you imagine a journalist or any first time buyer in the uk or Ireland whinging because they cannot afford to buy in central London or Dublin without being laughed at.

As for foreign speculators ,and i have made this comment on a previous thread,all the developers that i have either spoken to or have dealt with say the same thing foreigners account for a tiny percentage of their sales and the biggest speculators have been Polish nationals themselves.

I for one will continue buying property in Poland in the immediate future because the rental situation is looking very rosy indeed.

Real Estate / Deals available from Polish property developers [40]

Thanks for your input gdj,but if you can show me a new build flat in a major Polish city that is being flipped at 2/3 of Dec 2006 cost prices then i will happily pay you a fee for finding it for me

Real Estate / Deals available from Polish property developers [40]

Thanks JK,
The deal is a very good one,their year end is December and they need the numbers to hit targets.I am more interested in developer deals on offer as a reflection of the slowdown in growth in the major cities with the exception of Katowice and if consistent ,as an indication of a change from the rapid growth of the last 3 years to a steady growth reflected by a soundly based growing economy

Real Estate / property in Lodz - anyone any experience [102]

Eleanor,
Using your interest rate of 5%,an interest only mortgage would mean a monthly repayment of 806pln assuming you met the fit out costs directly.

Real Estate / property in Lodz - anyone any experience [102]

textorial-park.pl

Real Estate / property in Lodz - anyone any experience [102]

you do not want to pay more than about £38,000 for a one room flat in a new build off plan development with stage payments or a bit extra if there is an opportunity for a 10/90 or 20/80 deal.Stick to the area around Tymienieckiego especially with the Textorial Park development imminent just around the corner at Ksiezy Mlyn that will be providing about 1200 jobs in what will be the most exclusive office development in Lodz

Life / Poor Poland? [34]

You are right Daisy,although he could cover his liability with capital appreciation in 5 years!

Real Estate / Advice on what Polish city to invest in.... [101]

Hi Lodzinvest,

If you mean the one on Lodz, yes and it was sock on.

Real Estate / Advice on what Polish city to invest in.... [101]

Bigmoe,
Her email which she does not mind me posting is,marta@connectoverseas.co.uk
Let me know how you get on.

Real Estate / Whats available in Lodz, looking to buy several units [14]

1. I have already bought a number of units in Lodz and am buying more
2. I have bought them off the developer directly
3. On paper i have more than doubled my money

you are reading too many conspiracy thriller novels.

My comments are based on the actual experiances that i have had.You experiances are based on the conversations you have had in the copier room.

Real Estate / Whats available in Lodz, looking to buy several units [14]

Donomar,
Go backto minding the copier machine at kpmg or whatever and leave the property debates to people that have forgotten more than you will ever know!

It would be quite amazing if donomar got it right for a change!

Yes ,you got it right, impossible!

Real Estate / Advice on what Polish city to invest in.... [101]

Hi Bigmoe,

You can now obtain a 90%--10% LTV irrespective of the original contract price.Up until a very short time ago you could not leverage ,this has changed and there are some financial products available now that will enable you to do this.I will ask my broker if she minds her email being posted on this site so you could contact her directly if you like ,and obtain a more detailed explanation.

Real Estate / Advice on what Polish city to invest in.... [101]

ok,
if i am so naive why dont you show me the figures !