Return PolishForums LIVE
  PolishForums Archive :
Archives - 2005-2009 / Real Estate  % width 27

Why are homes in Poland more expensive than in the USA?


confused  
21 Apr 2008 /  #1
Could somebody please tell me why homes in poland are more expensive than that in the United States. People earn less in Poland and prices of goods are sometimes more expensive in Poland!
atlantic 13 | 51  
21 Apr 2008 /  #2
Depends what area of the United States your comparing Poland to. I do construction jobs part-time and there are houses in Long Island (New York), where the property tax alone for the house is about $20,000-$30,000 per year, and they are nice homes but there not anywhere close to mansions, nor are they shoreline property.
z_darius 14 | 3,968  
21 Apr 2008 /  #3
I do construction jobs part-time and there are houses in Long Island (New York)

I worked in Great Neck, NY long time ago. School tax alone was $10K a year in late 1980's. Although admittedly, it was a kinda ritzy area.
hello 22 | 891  
21 Apr 2008 /  #4
In the countryside it's still a little less expensive in Poland. But 20% of Poles work in Germany or UK so they earn in pounds or Euro and then I would argue they earn less than average American.
plk123 8 | 4,150  
21 Apr 2008 /  #5
I worked in Great Neck, NY long time ago. School tax alone was $10K a year in late 1980's. Although admittedly, it was a kinda ritzy area.

and there are no ritzy overriced places in PL? seems all of pl is way, way overpriced.
Guest  
22 Apr 2008 /  #6
Is it true that a property tax is going to be imposed on polish properties like in the USA, I heard about 6000zl per year
Davey 13 | 388  
22 Apr 2008 /  #7
prices of goods are sometimes more expensive in Poland!

not really...
bookratt 6 | 85  
24 Apr 2008 /  #8
Clothes, furnture and linens cost more here than in the states, as do computers/Tvs/appliances/electronics. We have found them to be up to 40% more (when you count the tax of 22% plus the higher cost) than back home.

Selection is often rudimentary at best (and given that you pay a lot to ship from the Uk or Germany and high duties negate any savings you may have gained by order over the border, it is seldom worth going this route).

A dyson vacuum (least expensive model, the c19 I think) costs $250 US at home. Here it's 800 to 999 zloty, or approx $380-$475.

My HP dv2000, loaded, was $750 US back home, here the same thing costs approx 2000 zloty.

Heck, a decent pair of leather casual shoes here is almost $100 US, where I can get the same thing, with more sizes available, for half that at home.

Where does the "not really" come in?

European pricing is the same-- or more-- than Polish pricing, so I get it if you come from Germany or elsewhere, you'd think it's cheap to live here.

Homes and rents are VERY high here, too, versus US prices--even vs US prices of a few years ago, when the housing market there was much better.

You pay a lot, for even the smallest, most basic spaces, with tiny, tiny yards, even many miles from major city centers. We chose to live away form the typical expat areas for that reason. Which I now regret, to some degree.

Believe me, I am still having sticker shock!
Magdalena 3 | 1,837  
25 Apr 2008 /  #9
Have you considered buying Polish products? Zelmer and Polar are very good choices in the appliance section, for example. Zelmer vacuum cleaners are excellent quality, I have had one for years. Same goes for shoes and clothes, you need to shop around and go less for the big brand magic, more for the actual feel of quality you might get. I can't give you any brand names off the top of my head, nevertheless I know these products are accessible and affordable. Apart from that, you might actually consider visiting a dressmaker, as they are comparatively very cheap, and you can easily buy wonderful fabrics and really go to town. One of my American friends went back home with a mountainous bag full of brand-new tailored clothes :-)
eleanoroconner 4 | 55  
28 Apr 2008 /  #10
One of my American friends went back home with a mountainous bag full of brand-new tailored clothes

Totally agree with Magdalena. Friend of mine got a wedding dress made in Poland. Even with two flights and hotel she still paid about half the cost it would have been in the UK.

But if you buy imported goods it'll always be more expensive
plk123 8 | 4,150  
28 Apr 2008 /  #11
yeah, i'd say taylors are cheaper in PL then US but everything else isn't. i have seen too many people coming here just to shop. the quality and pirce are way better in the US then in PL.
dtaylor 9 | 823  
28 Apr 2008 /  #12
taylors

Guess i must move then, i hate being so cheap:P
IronsE11 2 | 442  
28 Apr 2008 /  #13
Have you considered buying Polish products?

Zelmer vacuum cleaners are excellent quality

You've obviously never used a Dyson ;)
Franek 8 | 271  
28 Apr 2008 /  #14
After searching the real estate sites in Poland. I cant see that much difference in home prices in Poland compared to those in the US.. But here in America. Our wages are sooo much higher than in Poland. This makes home buying sooo much easier here in the US.
Krzysztof 2 | 973  
28 Apr 2008 /  #15
So you're sooo much richer than us!
News flash: It's been like that for many years, decades even, how surprising is the fact that the US is still richer?
Franek 8 | 271  
28 Apr 2008 /  #16
PSSST Sooo who is at fault for that?
Krzysztof 2 | 973  
28 Apr 2008 /  #17
I'm sooo not in the mood for looking for a scapegoat right now.
Let's just say it's our fault.
Is there any requirement to be as rich as G-7 countries?
Dice 15 | 452  
28 Apr 2008 /  #19
Ironically I see this situation as a great opportunity for Poland that could save her from upcoming global recession and slingshot her to the rich country status. How? Well, if the real estate is so much overpriced in comparison to the earnings, all it shows is a great demand and a limited supply. And that, after all is all capitalism is about; a balance between supply and demand.

Now if only Polish government could realize that too and drastically lower the real estate taxes and deregulate the building industry and the home loan part of the banking industry...

Think about it; let's say for the next 5-6 years the Government drops the real estate tax, the construction tax and fees, the red tape for zoning laws, building permits, contractor companies etc. My prediction is that so many Poles would rush back to Poland and start building; the government would get their money back (and more) just from the income tax of the construction workers and building engineers.

That would also safe Poland from the emerging global recession, which is just about the corner now (and it's a big one). While other developed countries will struggle with the recession, Poland could enjoy a flourishing economy and maybe able to catch up to them or even surpass some by having a real estate boom of a life-time.

The question is will the Polish Government be smart enough to cut the red tape and throw out the real estate and construction taxes?
sfordham - | 2  
28 Apr 2008 /  #20
Buying Homes in Poland is relative to what you earn, the same as it is in the USA, relative to what you earn so i can't see that much difference.
Dice 15 | 452  
28 Apr 2008 /  #21
I don't think you understood what Franek is saying, Sfordham. He is saying that the prices of real estate in Poland and US are about equal, but the average income is much lower in Poland as opposed to US. It's easier to afford a $250,000 house if you earn $30/hour then when you get $3/hour.
atlantic 13 | 51  
28 Apr 2008 /  #22
Haha, also keep in mind which country's making headlines about home foreclosures.
Dice 15 | 452  
28 Apr 2008 /  #23
IMO Lukasz you spend to much time on PF trying to defend your Country (a noble thing I may say) and prove to everybody that Poland is not as poor, backwards and racist country as YOU fear she's being viewed as. That would explain your thread titles: "Poland has Black foreign students", "Richest people in Eastern Europe" etc. You need to relax and get over it, Lukasz. For some reason you undervalue the very thing you are trying to defend so desperately. Poland is on her way to become a true Western country (although it may be in Eastern Europe lol); and to be truthful she doesn't need your help to get there. The day when there won't be any more Lukasz' feeling a need to prove to everybody that Poland is a true Western Country - She will become a true Western Country.

Haha, also keep in mind which country's making headlines about home foreclosures.

Oh, yeah, you right, that is a downside of a free market; it needs to be corrected every few years. And this correction is WAY overdue, so it's going to be worst then usual. That's because there was too many people earning 35K/year thinking they can afford $500K house. But even now the home ownership in the US is a staggering 70%.
Lukasz 49 | 1,746  
28 Apr 2008 /  #24
Lukasz you spend to much time on PF

I agree with you.
Magdalena 3 | 1,837  
28 Apr 2008 /  #25
You've obviously never used a Dyson ;)

A vacuum cleaner is just that - a paper bag (or other dirt-collecting gizmo) inside a bigger or smaller appliance with a tube sticking out of it. It's supposed to help you clean the floor, not fly to Mars. If there is a cheap vacuum I can buy, I will. I have actually recently bought a vacuum cleaner at Asda, it cost me all of £15.00 and and is a no-name Chinese product, but what the heck, it collects dust and bits and pieces off the floor, so what's the big deal? I don't need a status symbol in my kitchen.
checkmate  
28 Apr 2008 /  #26
I agree with you Franek, everything you say is correct, Poland will be the new America, Poland will be rich country and everyone will be begging to return to Poland, Poland will not be effected by the recession because it is not in America or something like that who cares, I could talk forever, its nice to dream isn't it, now for my second bottle of vodka.
Grzegorz_ 51 | 6,163  
28 Apr 2008 /  #27
Poland is on her way to become a true Western country

Hopefully not...

Archives - 2005-2009 / Real Estate / Why are homes in Poland more expensive than in the USA?Archived