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Posts by polishinvestor  

Joined: 28 Dec 2015 / Male ♂
Last Post: 24 Aug 2018
Threads: 1
Posts: 362

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polishinvestor   
24 Aug 2018
Real Estate / Any recommendations for area to purchase small plot to build a detached house near Poznan? [2]

Distance to utilities and access to them is very important to ascertain while doing due diligence. While water mains may be close by, if you need permission to cross a neighbours plot, it may not be forthcoming, so best to speak to all potential neighbours that may be involved. Also go to the council and see what plans they have for the area. Certain projects take decades to begin let alone complete, but you dont want any surprises when you wake up one day.
polishinvestor   
24 Aug 2018
Real Estate / Warsaw buyer or sellers market? Houses around the Milanówek area [20]

You can pay into the notarys account for a small fee, this eliminates any risk on both the side of the buyer and seller - the money being transferred to the seller byt the notary once the akt is signed.

PZU is the biggest and is often used given they tend to pay their dues in the event of claims, but of course they arent the cheapest. Dont skimp here though, as in the event of a claim of any sort, you could be left out of pocket.
polishinvestor   
19 Jul 2018
Life / Why Do You Love Poland? [814]

Actually in a village nearby dolno's they got to a situation where they had no postman. This was a couple of years ago so the basic pay after zus was around 1300zl cash in hand. Not a great deal but you would think for a village with at least 50% unemployed that there would be some folks willing to take the job. Its fine to say you wont get out of bed for less than 3 grand a month but as I explained to someone a few years ago, I can pay you 5 grand a month but you must earn me at least 10 grand to cover the costs of employing you and even then I am being generous since you will be earning much more than your employer!

Many villages thrive

Few thrive, only the ones close to, or with links to the biggest cities. Rather than convergence, the opposite is happening, certainly over the last 10 years. So your opportunity cost is always a big issue. The fault sits with the tax system and the behaviour of the local councillors of these villages, where often the first thought is to line ones own pocket rather than think for the good of the village.

The drunks and druggies are far more pleasant to be around.

Essentially they are a menace for their families and others that have the bad fortune of dealing with them. Its one of the reasons why the villages around Karpacz cant get any traction given that tourists are afraid of stopping their cars there even momentarily.
polishinvestor   
18 Jul 2018
Life / Why Do You Love Poland? [814]

The way the tax system and way of doing business is set up in Poland, it really doesn't pay to invest in smaller towns and villages, hence they are forgotten and this leads to those capable of working leaving, while leaving the rest behind. This rest comprises of drunks, elderly, young wasters and in certain villages gypsies. For those without money its a trap they cant get out of and many dont even want to. Those older foreigners, or retirees for big cities with money, can enjoy the views and activities that Jelenia Gora and Karpacz have to offer, but they dont need to mix with the riff raff unless forced to go to the town squares to the urzad miasta to arrange something.
polishinvestor   
16 Jul 2018
Life / Why Do You Love Poland? [814]

Some IPO's in Poland are no different to others in developed markets. If the company coming to market is or close to ex-growth, its not going to do well (Play). But you should be able to work this out. Some do, others don't. Doesn't have to come down to experience, but that can often help if you have a nose. There are a few good dividend plays with poss future growth bonuses on the WIG, but timing, as always, is the key to whether you end up under or outperforming.

Yes you can often place Poles at a certain point on the spectrum, but there are scammers everywhere, in every country. If you don't do due diligence, eventually someone will take you for a ride. That goes for any business you care to think of in any country in the world. Assumption is the mother of all f**k-ups. Expect the worst until you have proven otherwise. Don't assume, confirm. When purchasing property you should make the same demands as does a bank when approach by a person asking for finance. If the seller refuses, walk away. They usually come back with their tail between their legs. But if not, there are so many opportunities to go for. There is a reason why yields here are higher than in the developed West and you can't dispel all of the risk, but there is no reason to disadvantage yourself when investing here by not doing due diligence.

Problem is that people get hustled once and never go back to that person or company again

Cash in hand today is more important. Tomorrow is another day. That's the mindset. But again, its something entirely to be expected. Use this shortsightedness when dealing.
polishinvestor   
15 Jul 2018
Life / Why Do You Love Poland? [814]

Doesn't surprise me, esp in the wioski. And if caught, he will still have pretensje and complain that life isnt fair. That's often the village mindset sadly. Cheat until caught then look for mercy.
polishinvestor   
14 Jul 2018
Life / Why Do You Love Poland? [814]

Its all part of the fun here you constantly have to watch out, being awkward and cheating is a national sport.

That makes their actions predictable. And if you are the counterparty, it makes for an easy life.
polishinvestor   
5 Jul 2018
Real Estate / Does commercial property rent relief exist in Poland ? [4]

I think for warehouses there's a reduced rate, or at least there was a few years ago. But you needed to apply for it/declare .As for other commercial property, you are going to have to pay the full rate. But to be honest, its pretty much the same rate across Poland and at 23zl/m its not a great deal to pay especially if you are focused in any of the big cities - your property is going to be earning many multiples of that rate. More of a problem in lesser developed areas. And thats one of the big turns offs from investing outside the big cities - you are paying pretty much the same taxes but have much lower income potential.
polishinvestor   
30 Jun 2018
Real Estate / Does commercial property rent relief exist in Poland ? [4]

The landlord or the tenant? You can offer a short rent free or reduced rent period to a new tenant to allow them to make the necessary changes/upgrades to your commercial unit. Its quite normal. The amount of discount given largely depends on how desirable the location is. Providing relief for a current tenant is also possible if the tenant is making significant upgrades, but not recommended otherwise. Its a slippery slope reducing rent and your yield is what provides the bulk of the return in the long run, so any cuts in the short term will multiply out into the long term and significantly hamper the return.
polishinvestor   
6 May 2018
Law / Poland's ZUS/NFZ payments for businesses [27]

Reduce the fixed ZUS rate but be more strict about petrol and cars claimed for business use - i dont think i know a single person who is honest about it.

Mixed use just affects the VAT payment, while you cant have more than one car if its a single person business. So its more about income tax here, but you can't argue with people including it as a cost as few business are run without the help and use of a vehicle so its only right that costs can be claimed. And to be honest a lot of the loopholes here have been closed.

Raise the employees ZUS a couple of percent so that in zloty terms they pay a bit more and bring them closer to the amount paid by self employed

Businesses would pressure employees into self employment, absolving them of many responsibilities.
Enforcing ZUS payment and confirming employee status within businesses would be a way to go, then of course there is the spend side which is ripe for adjustment but is likely to stay bloated since it keeps so many in employment.
polishinvestor   
3 May 2018
Law / Poland's ZUS/NFZ payments for businesses [27]

In Poland cash transactions are still very popular and with a less stringent tax system, there is a lot of room to cheat the tax man. Hence the requirement of business details on the petrol receipt. You can imagine the avenues for cost building. A lot of things that just aren't worth your while in the UK are actually worth doing if you have a lot of time but little cash flow and here is why the tax authorities stay on the offensive given that there is so much evasion.
polishinvestor   
30 Apr 2018
Work / Diary of a Teacher in Poland [181]

Idealism costs money. If you're not paying for it, someone else certainly will be. Like it or not, it's the way of the world. And if you can't change it, because you can't, you have to play by those rules.
polishinvestor   
30 Apr 2018
News / EU confirms it will take action against Poland over court reforms [554]

They can allocate funds based on the regions ability to follow EU rules and, in particular in this case, the rule of law. The EU is working on ways to get around the Article 7 veto issue and will use other treaties to apply financial restrictions, whereby a majority would be required to reverse or stop such actions. It is of course still just positioning by the EU, an effort to put pressure on PIS, but ultimately its aimed at Polish voters. In Poland, usually money talks and at the end of the day it probably will but it may come to late to influence the next EU budget in a positive way.
polishinvestor   
30 Apr 2018
Law / Poland's ZUS/NFZ payments for businesses [27]

You can suspend your business for up to 3 years during which period you no longer need to make ZUS payments. ZUS is massively underfunded looking at the long term picture, so its unlikely any changes are going to be in our favour.
polishinvestor   
29 Apr 2018
Law / Poland's ZUS/NFZ payments for businesses [27]

You can get by without paying ZUS if you aren't living in the country but if you are you do get a 2 year initial reduction down to 500zl/m before it goes to 1200zl/m. Tax is something else but tbh if you are worried about not making the ZUS maybe the potential for your earnings isn't great enough to consider that line of work or business any further, certainly if ZUS payments are still a worry at the end of the 2 year discount period.
polishinvestor   
29 Apr 2018
Real Estate / Looking for a reputable Lodz Estate Agent & Solicitor [8]

Location and then flat layout should be your most important consideration given that most blocks are now built in large part by a Ukrainian workforce! Any problems can be usually put right or masked if not spotted before being granted usage. Echo are huge but stay away from places like Skytower which are massively overpriced and may have issues in the future!
polishinvestor   
13 Apr 2018
Real Estate / Starting an English building company in Warsaw. [24]

Absolutely the opposite I'd say. I wouldn't touch anything flat wise built in the last 5 years, unless I was prepared to put a lot of extra money into it. I hear many instances of flooding of top floors and lift shafts. Work is usually completed by unskilled Ukrainians employed by sub contractors trying to increase their margins.
polishinvestor   
13 Apr 2018
Real Estate / Starting an English building company in Warsaw. [24]

But do not go into business with the friends/family, no matter how good the offer might be

I try to do business only with people and companies that have more assets than me. You want to avoid counterparties working on a shoestring.
polishinvestor   
13 Apr 2018
Real Estate / Warsaw buyer or sellers market? Houses around the Milanówek area [20]

compared to the uk, its always a buyers market in poland particularly when it comes to houses. higher priced stuff shifts less often and its not unknown and in fact quite usual for some houses to be on the market for years due to a mixture of lack of liquidity at that price range and of course unrealistic pricing. if you are a cash buyer, you hold all the cards. check the online ads to find out how long they have been selling and dont be afraid to lowball, as sellers are often selling for a long time and the smell of money (as opposed to bank loans) and the opportunity to close quickly is often enough.

agents fees are around 2% above a million or 3-3.5% below, thats an average, but you can negotiate. if the agent believes you want to buy, they wont stand too firm if it comes down to the fee as they know if you walk away they get nothing. and you can always go back after 12 months anyway (usually the lock-out period for agencies but you need to check your paperwork with them).

you can use this site to look at prices
ceny.szybko.pl/ceny-nieruchomo%C5%9Bci
while some of the free portals pick up ads from the big ones and time stamp then so you can go back years to see the first listings.
polishinvestor   
13 Apr 2018
Real Estate / Real Estate Lawyer costs in Poland [18]

For a private property or house where cash and no loans are involved, there is no need for a survey and most folks don't bother. Even if you do ask for a survey (around 1000zl) dont expect them to measure the walls with moisture meters. Surveys in Poland tend to be very basic and if you want proper structural surveys done, its best to buy the kit which isnt too expensive and do it yourself. It will of course be useful in the future so well worth it. For structural surveys you will need an architect if this area is foreign to you.

As for the notariusz its pretty easy to check online. You can take a lawyer with you to the notariusz but usually you can ask for a draft copy of the akt that will be read out by the notariusz and you can take this to a lawyer before you go to the notariusz to sign. That way the lawyer can make suggestions to change the text in certain areas or include other clauses. He will also be able to alert you to any clauses that will be carried over from the present akt (deed). I always ask for copies of the present akt. People dont always want to show it but they can always blot out the price and pass it on as it would be demanded by a bank if a loan was required so you can really insist on it. As for payment, the safest way is to deposit the funds with the notariusz a day earlier, sign the protocol for this which confirms the transaction, then go to sign for the house. The notariusz will then transfer the money to the seller after the akt is signed.

Another thing you need to do is get a document from the seller confirming that nobody is registered at the address at the local council. This document is usually handed out on request. That way you wont have any nasty surprises as to who is allowed to live at the house besides yourself.
polishinvestor   
10 Apr 2018
Real Estate / Starting an English building company in Warsaw. [24]

Forget limiting yourself to an expat market that often skimps and saves more than natives can do. And why limit yourself to a few thousand individuals. There are plenty of folks with money in Poland and to be perfectly honest, good tradesmen that can be left on their own are worth their weight in gold. These days I tend not to share the ones I use as its taken years and decades in some cases to find them and there is only so much work they can take on before you are stuck at the end of a one year plus waiting list. There is of course work for even the worst kind of builders/tradesmen. Its of course a spectrum. However, before you begin I suggest you very slowly make yourself aware of the way the Polish property market operates as a whole, before making any big decisions. That may mean simply speaking to others who are doing similar things or even spending some time at all levels from the site to planning. For this kind of work experience you'll need access through a friend or family, otherwise I imagine it will be difficult for you to see whats going on and how things are done. A lot of things are easier to do than in the UK, but there are certain ways of doing certain things which differ from a UK approach. Surveys in my view are wholly inadequate but this can work for you as well as against you, while fitting bathrooms and kitchens isn't much different but with plumbing and heating often different methods are employed.
polishinvestor   
10 Apr 2018
Law / Investment advice - my options in Poland? [50]

Not much you can do with a ton without getting your hands dirty with a day job, certainly if someone is looking for a living wage from it. But looking at it realistically, there are a few blue chip Polish companies you can invest in which provide a good yield sometimes. You can be looking at yields of up to 7% and a healthy return of capital if your horizon is 5 years or more. There really isn't much else you can do if you want to stay relatively liquid. If however you have a skill associated with construction, light building work, utilities or decoration, there is plenty of work for good tradesmen going in the big cities.
polishinvestor   
14 Mar 2018
News / Goodbye Sunday Shopping in Poland - Hello Electoral Reform [226]

Sorry, that is absolutely wrong.

Yes where to start. The relationship between wage growth and inflation is more important. As long as wages are rising faster than inflation, real income is rising and you can expect to see growth. But its a balancing act since higher wages feeds back into higher inflation, hence the need to cool the economy before inflation breaks away ahead of wages.
polishinvestor   
3 Mar 2018
UK, Ireland / Criminal elements within the Polish community in the UK [26]

young, largely speaking under-educated men, who come to the UK with no qualifications and high expectations

These days its only those types that go abroad given they have ran out of options in Poland. Most folks are able to move through the system and find suitable work here, whether thats through employment or self employment.
polishinvestor   
3 Mar 2018
News / Polish food shop blown up in the UK - result of gas "leak"? [213]

actually its often indians, pakistanis and kurds that run polish shops in the uk, driving out polish run polish shops! of course they are often fronts for other activities, but nevertheless they drive out the competition!
polishinvestor   
28 Feb 2018
Real Estate / Buying/Building a house in Poland/Wroclaw metro area [12]

look at otodom.pl. that and gratka.pl are the most used sites. As for location its always going to be a compromise of quality of life and travel time. A lot of people prefer to live in flats within the city as its easier to travel by tram to work. However, they tend to be single or at least have no kids. More are deciding to buy a house on the outskirts, but still within the city limits. Lesnica has plenty of greenery and will benefit from a ring road into the city centre later this year. The further out you go, the cheaper the houses tend to be. If you don't need to be in Wroclaw everyday, you could even consider a smaller town outside of Wroclaw such as Swidnica Trzebnica or Olesnica. It all depends on your personal circumstance really.