Advice on what Polish city to invest in....

yes lets all invest in poland help push up prices so the local will not be able to buy,good idea

clown

Ask Dom Development ( the biggest in Warsaw ) what percentage of apartments are sold to foreigners....

Less than ten percent they say, so don't think there's much in your argument to be honest.

if you can convience other people that your problem is their fault then fair play to you... butcha gotta accept that some people will call you out... and maybe even call you a clown...

silly me i did not know there is only one develover in poland,well fancy that

exactly... best not to make a song and dance about it...

dont worry we will all come to your country

You tell him, Ola! Nice to see you again....you haven't been here for a while. What's new?

Oh I missed this place a bit, nothing new tbh, Im just fine :]. How are you? ;-) ;-P

Doing well.....going to Sopot in another month and I'm very excited! :)

So you are going to see Sopot Festival, have fun :].

you did already, no?

so many greedy people why dont you put the money in a bank and not help push up prices for poles,mind you theres a lot of well of greedy pole ,oh we like theses flats lets buy 2,krakow south of the river [rucaz]has gone from 2000zl metre to 7000+ now leveling out lets hope for a falling maeket so young poles can get on the market,i was talking to a young lady today who works for a developer ,and she cannot afford to buy and theres lots more to

It's called Capitalism and Modern Day Market Forces.

If there were no investors./buyers, one could argue whether a large propertion of new build would be built or developed ?

Thanks for the replies!

We have just come back from Poznan after looking at several places to buy.

We are thinking on buying two brand new apartments at 43.8sqm at a price of approx. 7000 zl /sqm = ~300,000zl

what do you think of the price of these? In, say, 5 years time how much do you think they will be worth?

Looking at it as a year by year income, do you think it will be worth it after fees, interest on mortgage etc...?

Also, does anyone have advice on paying tax if we were to sell? I will have to pay 40%, but what if we keep the money over there and use it to invest in something else?

Hi Nick & Anna,

As I understand it, if one buys a property (ie. signs the final agreement) after 1st January 2007, the Capital Gains Tax (CGT) is now 19% on the profit irrespective of

how long one has owned the property.
The rule of owning a property for a period of 5 years resulting in a CGT
of zero is no longer applicable. However if one is resident at the
property for a period of 12 months this makes one exempt from CGT.

I also believe investing the funds from a sale will no longer make you exempt from paying CGT - I will check with my contact in Poland for verification.

This is for Polish residents, but for anyone residing in UK , then the Inland Revenue will want there cut !

If you pay the 19% in Poland then Mr Taxman here in UK will want the remaining 21% !

Most property analysts have said that 2007 will be a good year for Poznan and Lodz in terms of capital appreciation.

What is the location for the apartments you are considering buying ? .... are there good transport links,shops, recreational areas nearby ?

Would anyone have any good links/developers/agents in Warsaw or Krakow?

My family is from PL and I have recently just completed my first trip there and have to admit I love it!. My family would really love to buy a small place some where close to the centers or either city.

Hi

I've been investing in Poland for 3 years to date. Average annual capital appreciation about 40% but is getting difficult to maintain without a lot more capital.

Would be interesting to compare notes with your experiences.
Poland is a big place so I see little risk of treading on each others toes.
I'm just about to obtain finance from a Polish bank. A major hurdle overcome if it happens.
Reply here or to:-
mick4polska@myway.com
Regards

Chris

krn.pl is a good site, although only Polish version.

Quite a few developers now have both English and Polish versions of their site.

There are plenty of developments to choose from, but make sure you go with a reputable developer, and always use a lawyer to check any agreements you sign, preferably in notarial form.

A few of the bigger developers give favourable payments plans on off-plan apartments, such as 10/90 or 20/80.

If you want any info. send me an email : anglopol@aol.com

Sorry to 'burst your bubble' Gregorz, but some (and quite a few) prices in Wroclaw are already as high as prices in St Albans (the town in the UK with the highest resi prices after London)

I dont know what Im still doing in Poland :/. We young have no chance here to start a life.

Why give up so easily then? Making it in life can be a struggle, but that's another topic :) My GF also thinks i'm crazy for thinking this, but why not stand up to your gov't and be heard? You young people are the future of Poland!!

couldn't agree more, just get rid of all those foreign speculators, spin doctors, and rip off merchants and everything will be OK.

Very few Polish properties are more expensive those in the west, (apart from some homes in the dress cycle in Krakow and Warsaw)
To get a half decent home in central sydney etc its 2mA$ plus.
The homes in the countryside are still very, very cheap, but who wants to live there!
Until wages go up, and I mean a lot, homes will not increase that much.

Young and old don't seem to think alike. There are more 'old folk' than young. So, in a straight vote the young may never win.

This is true in most places, but if the young people keep leaving who will be their voice?

It will have to be a few clever, young, minds who move into politics.

Warsaw will always be a good bet for capital growth in property, Simply becasue it is the capital. No matter how prices change, the demand for housing is fuelled by the number of migrants moving to the capital each year.

Prices in Warsaw are high now compared with 2-3 years ago when I bought there, but it is still very much a good ongoing investment opportunity.

If you do as I managed to do, buy an off plan property with a deposit of just 10% and nothing more to pay to the developer until completion 2 years leter, you will definitely make good money as a result of the prices growing.

I can give you more details if you wish to email me.

Hi Nick/Anna. I am also keen to purchase an off-plan development in Warsaw Krakow or Wroclaw, the property will be mainly used for a short term invest (3/4 years) but also for visiting purchases as I love the country. I have very limited knowledge of developers/agents and was wondering if you could advise me what you went with?

Hi Nick and Anna

There is one area that I would recommend highly. The northwest neighbourhood of Krakow named Lobzow. You will enjoy premium rental yields along with above average capital appreciation. You are right to stay around the 40 to 50 m/2 size. Even 30 m/2 are great sizes to invest in. There are hundreds of places in Poland that will be worthwhile to invest. The best is to assess the economical demographics along with future planned gentrification. Also get as close to the city centre as possible irregardless of what city.

Regards

Arthur

Hi NickShorten, If you are interested in buying in these cities especially Warsaw and Krakow, both lovely in their own different way, then off plan is a great idea.

While you wait for the property to be built, it is growing in value and that makes it a fantastic investment.

The best bit is that some of the developers only need 10% or 15% deposit and NOTHING else to pay until completion which can take an average of 18-24 months. Then if you decide to keep it and NOT resell or flip the contract, you can easily get an overseas residents mortgage of 85% Loan to value.

You really can't go wrong. You should also talk to the guys at DKM ( Davidoff Kleeberg & Maresch) they seem to be the one agent dealing with Brits and Poles who really know what they are doing. They also have a lot of 10% deposit deals which can really be a best buy.

Hi Nick & Anna and Polanglik,

The statement you make about the Polish capital gains tax is competely WRONG

Whilst from 2007 the CGT on resales is 19% for Poles with national ID and or living in Poland they can resell after ONE year and pay NO CGT.

For overseas Buyers - they can STILL have a ZERO CGT if they own the property for 5 years or more.

Where your information comes from I don;t know but the above is the correct TAX position now!