Real Estate /
BEST Poland's city to Invest in?? Warsaw, Wroclaw, Krakow, Poznan, Gdansk or...? [34]
In the center of a big town you will need at least 6000 per sqm and in Warsaw the average is now round 8000. For a 60sqm place in Krakow or Poznan then you will not get much change from 500k zloty once you have furnished it and paid transaction costs.
Middle class families will be less willing to live in the middle of cities once their kid starts walking. There is a lot of govt support for them to buy new build places and on the edge of big towns there are lots of small housing developments being built where they can have a kind of 80-90sqm house.
I have had a couple of rental properties here and my average yield has been 5.2 percent - i rented both to students and young families and the yield is pretty much the same. Thats before I take into account my own time managing them. You will find some people who can claim much higher yields but they are generally more experienced, cost conscious investors with time to manage the process.
I only had one problem tenant but a bigger issue is the czynsz and repair costs - it is getting difficult to pass these on to tenants - most want to know for certain how much they will pay and not have annual unpredictable increases.