Real Estate hits a new low in Poland

haha. i have sat down to sign what i thought was a fully negotiated contract one more than one occassion only for some last minute addition to be throw in.

i wouldnt mind so much if the contract hadn't already gone back and forth half a dozen times with minor little changes theyve insisted on.

but what really p!sses me off is when the last minute changes are put in because they are overwhelmed by paranoia that im about to rip them off...

the concept of win-win doesnt seem to have sunk in yet


you flatter me bolek :)

i will return to poland, without a doubt. but in all honesty, the thought of being anywhere 'for good' scares me wittless... ;)

That is not the way I run my business. My number one priority is to inform my Client of the choices that are available to them and guide them with their discision.

Reminds me of someone I met in Warsaw. He complained the same way.
I said, "Why don't you leave?"
He said, "It's not me who should leave, it's them!"

- So nice you are, both of you. I hope you live and invest in Poland and God protects us.

Hmmm, you way want to share your knowledge and let us know the state of the Real Estate market in Poland, people in the know, tell me that real estate prices in mid year will reach a new low. I quess in your business its good to tell people its all hanky dory.

So ania, are you telling your clients to buy? Or are you telling them, that times are bad, and although prices are going down, most economic forecasts point to them going down more, therefore its probably better to wait it out?

Rubbish. Your number one priority is to make money, just as the number one priority of any business is to make money. You get paid per property sold. When you sell nothing you earn nothing. Hence your hugely amusing comment about



See above: she's telling them to buy.


You mean is she saying to them "I get paid on commission. Please do not give me any money now."? No she isn't.

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.

are they taking the piss or have they just stopped irresponsive lending?
if banks had been more prudent with their lending regulations in the first place, we would not be in this mess

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

a very valid point. when I was refering to banks, I was not refering to Polish ones but banking in general. look at the challenges WBK has had due to the irresponsible lending of its partner bank Allied Irish Bank

on some of my earlier posts, I was very complementary about lending protocols amongst Polish banks.
on a different topic i noticed that the house prices in the UK rose in January however it is a dead cat bounce by the looks of things.

Some would say the practice of lending in swiss francs to buy an asset which is valued in zloty is not only irresponsible but a tad insane.

Why? its the client that ultimately pays the price. Banks are able to lend with more attractive interest rates.

I have land in Poland in Pilona and want to sell when would be the best time to sell it dose anybody no?

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.

Although foreign currency lending may well be the quickest way to make the previously creditworthy insolvent ;)

Yeah. but as ash put it.. a client who becomes bankrupt will no longer repay his/her loan. In a sense, by handing out such a loan the banks are potentially turning that client into a high risk.

and in whose favour is that exactly?

I would assume that it is not in anyones favor?

i think youll find that youre wrong


i did

fair enough. I'd be interested to hear your argument on this.

Unless the client has a 110% mortgage on a property which was worth 330,000zl but is now worth 280,000zl while the mortgage which was taken out in Swiss Francs now equates to about 480,000zl at today's exchange rate and the client decides to just give the keys of the property to the bank and say 'Thanks very much'. When that happens the bank loses 200,000zl. Not sure how that is the customer paying the price.

If someone owed you 200,000 zl would you just forget about it?

I'm not sure how the laws work in poland but i would assume the customer still owes the bank 200,000 zl. If the customer owns any other assets then the bank would surely have the power to take them.

And i would say that in the case of those who borrowed 70/80/90% (which is a more likely scenario) the customer would lose their deposit.

I think the US is the only country in the world where if a borrower hands back the keys to the lender he owes *nothing* from that point onwards.

article in Australian news discuthe state of Eastern European Economy. Repeats itself a bit but theres stuff in there.

theaustralian.news.com.au/business/story/0,28124,25093112-5017999,00.html

pity they dont go back to proper prices of years ago like 2000 a sq metre when polish could buy,its a crazy world lots have no hope to buy