majatek
27 Apr 2010
Real Estate / House prices in Poland to drop more or rise again? [228]
I have been buying property in Poland during the past couple of years. My interest is in old country properties. I started out 'stary eyed', as most do. To have a dream can be quite intoxicating... the harsh facts of reality are very sobering!
The houses can be wonderful, but the locations, more often than not, leave a huge amount to be desired. And then, there is the 'culture' thing. You are not simply buying somewhere to live, but buying into a rural community where your every action will be observed and judged - with a fair measure of mistrust, resentment and even hostility. The locals/neighbours will almost without exception be poor peasants whose idea of neighbourliness will be to view you as a potential source of income. They will soon come knocking on the door offering to supply you with firewood or to cut the grass. Not a bad thing you may think - perhaps not, until you discover that every Tom, Dick and Harry (or whatever the Polish equivalent is of this saying) in the area expects you to pay them for the offer of some trivial service. Woe betide the owner of the big country house who turns away the locals!
You are not seen as simply a person wanting to buy a house to live in some comfort, peace and quiet - and maybe do a bit of gardening and painting on the side. You are given the title of INVESTOR (add the word 'rich'). Every pile of rubble is now described as having the potential to become a hotel, sauna, health spa etc - and what appears to be a favourite, that you could breed race horses there! And, of course, these 'wonderful business opportunities' (piles of rubble) have prices to match - anything up to eight million zloty!!!!
The rural villages where the historic properties lie suffer from a dreadful lack of investment and unemployment is high. Despite living at a subsistence level, the locals seem to find money for drink and cigarettes and old cars! The owner of the big house will be viewed as fair game! To stand any chance of survival in the small, poor community you will have to adopt the role of the benevolent rich uncle. You will have to learn to live with a community which has a mentality that they are doing penance because they are poor, and because you are not, you will be expected (for 'be expected', read 'have to') give to them.
And then there are the sitting tenants! The sitting tenant will not understand that neither you, nor the state, owe him/her anything. He/she believes that the responsibility for his/her life lies somewhere outwith him/herself. You will have to be her rich uncle. He/she will not understand why, if the rich uncle is so rich, you cannot simply go and live somewhere else. Why do you want to live in 'his/her' house. The fact that you are the new OWNER of the 'big house' will class you as the latest in a long line of capitalist oppressors!
The historic buildings konservator will also see you as a rich uncle. You will be expected to provide employment for numerous local 'craftsmen' (cowboys). And of course, you will have to engage a team of 'professionals' (more cowboys0 to ensure that everything is submitted, approved and completed according to 'regulations'. I have never seen such mind boggling volumes of paperwork required by a 'system'... and I worked in the Civil Service in the UK for almost 10 years!!
Unlike in the UK, where property is valued by a Chartered Surveyor, in Poland the 'price' is determined by the seller - or should I say, greedy seller. Old properties have more often than not been bought at auction (often Government auction) during the 'good old days' a few years ago, for next to nothing. Now the owners, after spending some time on the internet looking at prices in other countries, believe that they are property owning millionaires! They sincerely believe that their pile is suddenly now worth a fortune, and have no qualms in asking you for a few million!!!! If you try to point out that they are mistaken, they will get very upset and angry - accusing you of not being a 'serious buyer', and the like!
Despite all this, there are still some great properties out there - and most importantly, at the right price. These are becoming more and more extremely difficult to find.
So, in answer to the question 'will prices go up or down' - as in all aspects of buying and selling, it depends on one thing and only one thing.... the price you bought for in the first place. If you pay to much, you will be a loser.
Please excuse the rambling.
I have been buying property in Poland during the past couple of years. My interest is in old country properties. I started out 'stary eyed', as most do. To have a dream can be quite intoxicating... the harsh facts of reality are very sobering!
The houses can be wonderful, but the locations, more often than not, leave a huge amount to be desired. And then, there is the 'culture' thing. You are not simply buying somewhere to live, but buying into a rural community where your every action will be observed and judged - with a fair measure of mistrust, resentment and even hostility. The locals/neighbours will almost without exception be poor peasants whose idea of neighbourliness will be to view you as a potential source of income. They will soon come knocking on the door offering to supply you with firewood or to cut the grass. Not a bad thing you may think - perhaps not, until you discover that every Tom, Dick and Harry (or whatever the Polish equivalent is of this saying) in the area expects you to pay them for the offer of some trivial service. Woe betide the owner of the big country house who turns away the locals!
You are not seen as simply a person wanting to buy a house to live in some comfort, peace and quiet - and maybe do a bit of gardening and painting on the side. You are given the title of INVESTOR (add the word 'rich'). Every pile of rubble is now described as having the potential to become a hotel, sauna, health spa etc - and what appears to be a favourite, that you could breed race horses there! And, of course, these 'wonderful business opportunities' (piles of rubble) have prices to match - anything up to eight million zloty!!!!
The rural villages where the historic properties lie suffer from a dreadful lack of investment and unemployment is high. Despite living at a subsistence level, the locals seem to find money for drink and cigarettes and old cars! The owner of the big house will be viewed as fair game! To stand any chance of survival in the small, poor community you will have to adopt the role of the benevolent rich uncle. You will have to learn to live with a community which has a mentality that they are doing penance because they are poor, and because you are not, you will be expected (for 'be expected', read 'have to') give to them.
And then there are the sitting tenants! The sitting tenant will not understand that neither you, nor the state, owe him/her anything. He/she believes that the responsibility for his/her life lies somewhere outwith him/herself. You will have to be her rich uncle. He/she will not understand why, if the rich uncle is so rich, you cannot simply go and live somewhere else. Why do you want to live in 'his/her' house. The fact that you are the new OWNER of the 'big house' will class you as the latest in a long line of capitalist oppressors!
The historic buildings konservator will also see you as a rich uncle. You will be expected to provide employment for numerous local 'craftsmen' (cowboys). And of course, you will have to engage a team of 'professionals' (more cowboys0 to ensure that everything is submitted, approved and completed according to 'regulations'. I have never seen such mind boggling volumes of paperwork required by a 'system'... and I worked in the Civil Service in the UK for almost 10 years!!
Unlike in the UK, where property is valued by a Chartered Surveyor, in Poland the 'price' is determined by the seller - or should I say, greedy seller. Old properties have more often than not been bought at auction (often Government auction) during the 'good old days' a few years ago, for next to nothing. Now the owners, after spending some time on the internet looking at prices in other countries, believe that they are property owning millionaires! They sincerely believe that their pile is suddenly now worth a fortune, and have no qualms in asking you for a few million!!!! If you try to point out that they are mistaken, they will get very upset and angry - accusing you of not being a 'serious buyer', and the like!
Despite all this, there are still some great properties out there - and most importantly, at the right price. These are becoming more and more extremely difficult to find.
So, in answer to the question 'will prices go up or down' - as in all aspects of buying and selling, it depends on one thing and only one thing.... the price you bought for in the first place. If you pay to much, you will be a loser.
Please excuse the rambling.