Real Estate /
What do you pay in rent/mortgage in Poland? [144]
Christ, Im laughing my arse off, at some of the naiviety, and also at some of the blinkered figures, offhand stats......FFS, I really dont think ANY bank would try & run figures in an article to make it non viable to have a mortgage!! lol!.....
Anyroads......& I WILL go into detail.....regarding thte true state of affairs outwith the snowhead expats, who haven't spent anytime outside Expat pubs, & the end of the Tram tracks.
Lodz, Poznan, Warsaw, & my beloved Krakow....I live in the South of Poland........for many years, before EU ascension.......I have to travel Poland wide , and have done every weekend for 9 odd years...I interact with Polands "Young crowd" 22-30, as a Professional DJ (which means I earn a living from doing this!) I speak to normal average Poles from ALL OVER THE COUNTRY, every weekend, in all manners of places, I KNOW what is the average income, for an average person. I also dont need to be referenced to the WBJ for pants political nonce, concerning incubated Anglo American guesses at the state of affairs for a general Pole's fiscal state of affairs.
The below chart is in retort of the "blinkered School teachers" (and I apologise for the generalisation here)
This is a cost of living rundown I did for my brother about 2 yrs ago.........bear with me here......Ill get to the CURRENT COST of Housing in South Poland at the end!>
Average wage in Britain (Outside London/Main Cities) 1500gbp per month (after tax)
Average wage in Poland (Outside Warsaw/Main Cities) 1500Zlotys (after Tax).
(Semi & Unskilled Occupations are included here as the average.............NOT BLOATED LONDON / WARSAW figures )
So we have an exact same "income level" between both countries as a starting block . ok!
Lets go Shopping ! with an imaginary list!, nothing personal incidentally, just random, but relevant to most of us I think.
Jar of Nescafe Gold Blend 100gm - UK 2.99 Poland 16.99
Huggies Newborn Nappies Disposable UK 3.99 Poland 22.99
Nestles Cheerios 100gm UK 1.99 Poland 10.99 zls
Pair of Mens Jeans (not Designer) (Highstreet) UK 30gbp (Lee) Poland 260zls (Big Star)
10 yr Old (2000) Honda Accord 1.8i VTEC SE - UK 2,495 gbp Poland 20,000 zls
Hotel 3 star Majorca family of 4 Holiday - UK 1400gbp Poland 10,000 zls (Brochure Holiday type deal)
Monthly Flat Rental -Modern Renovated 2 Bedroom Flat --- UK 450gbp. p/m Poland 2500zls p/m
Heating Bill for above flat in December (Gas Boiler type of heating) keeping the flat at a steady 21C overnight.
UK 100gbp Poland 700zls (This is With NO subsidy from a housing association. This is the REAL cost of gas heating in Poland!.
Family Home 3 Bedroom (10 yr old Detached Home with Garden)
UK 450,000gbp Poland 1.6Million zlotys. (based on Krakow / Oxford)
Average Car Loan interest Rate - Homeowner loan borrowing 20,000 (GBP & Zloty) over 5 years. (THESE FIGURES WERE CORRECT ON THE DAY OF MY APPLICATION for this results test.
UK
Payment per month £403.75 Total charge for credit £4,225 Total amount you repay £24,225
POLAND
Payment per month 660.34 zls Total charge for credit 15,400 zls Total amount you repay 35,400 zls
I hope now you can understand things better, and Ill keep this note for the Polish Tourist Board summer advertising campaign! and maybe also for the Xenophobics among us, to get a clue, as to why there are so many Poles in the UK....... lol.
(All stats done using Tescos/Rightmove UK/ Car Trader./MoneySupermarket.........are all 100% accurate at time of going to press ;-).
And about the car above, the RELATIVE COST IS MASSIVELY HIGHER!. The cost to actually buy the "10 yr old family car". is really the following amount.
UK £3,145 ( 2x your salary)
Poland 35,400 zls ( 24 x your salary)
with 1500 as your budget.....you do the maths, it's called an economic imbalance.
House Prices currently in the south of Poland...(Malpolska).....Gorlice/Nowy Sacz area.........Detatched House, 10 arow (acres) 220Sqm Living space Price currently at 500,000zls (If they house is relatively modernised, if renovations are needed (380,000zls)
So in current climate.......as of today.. 18-6-2012.......and by my simple maths. 18000zls per annum (1500x12)/ 500,000 = 27 times your salary to buy a 4 bedroom Family home in the South of Poland.
the above is to let the others takes their blinkers off....put their Amex away and see that Poland is NO holiday camp concerning living costs & Property ownership. Most people here CANNOT afford, or DO NOT reach the Banks criteria. The Country is f@cked because of unregulated morons in government letting people with NO professional experience become "Nieurochomosci" capitalising in on the housing boom, which ultimately has made it Imposssible for a normal Pole to EVER think about Home ownership.
They Dont come close, in earnings vs Capital repayments. Every bank in Poland wants 100% of the Mortgage amount back in revenue, over the term of the loan. So If you want a 500,000 Zls House here, You are paying Back 1,000,000 zls over 25 yrs. How do I know,??? cos Ive just visited over 18 lenders in Malpolska regarding this matter in the last 2 weeks. NONE were offering 100% mortgages.
So by my calculations on this subject, on an 80% offered mortgage, A Person needs 100,000zls in CASH to get a mortgage,, which means he has to work for 6yrs, saving evry single zloty he has earned in that 6 yrs, to just have the deposit. Even if he qualified, How many of even the EXPATs here have that kind of cash lying about, never mind a normal Pole?.