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Posts by polishinvestor  

Joined: 28 Dec 2015 / Male ♂
Last Post: 24 Aug 2018
Threads: 1
Posts: 361

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polishinvestor   
3 Feb 2018
UK, Ireland / Are Poles in UK really that big of a deal? [112]

The worst ones generally work in abroad because they have nothing to do in Poland.

THIS^^^
Bar a few exceptions, special circumstances, anyone with any kind of start or education isn't going to risk losing a few years by trying to make a go of things abroad. A decade ago or more maybe, but not now. Those with no skills and looking for an easy ride that the likes of the UK can offer, are the ones that are emigrating. Its pretty embrassing to hear some Poles on the streets of the UK. The good thing is you can usually spot them a mile away and avoid them. Poland is glad to be rid of this sort, while I suppose the UK isn't really bothered since its still usually supporting these folks with rich benefits, the likes of which they would never get in Poland.
polishinvestor   
2 Feb 2018
News / Poland's economic future? [294]

gas heating in Poland is almost twice as expensive if you ever wondered and electric heating is even more expensive

Do things properly and in the height of winter it can cost less than 1000 a month to heat even a 4 or 5 hundred square metre house by gas. The problem is efficiency and heat retention. Grants should be spent on correcting these and then even a cheap dual function boiler costs peanuts to run.
polishinvestor   
24 Jan 2018
Law / ZUS for owner (living in the UK) of a business in Poland [3]

You can be a director and not draw a salary, so you wont need to pay. But an employee will need to have ZUS paid. There are ways shift the accountability to the employee but the fact remains that someone will need to pay it, whether its your company or the employee, so it would need to be figured into take home pay.
polishinvestor   
24 Jan 2018
Work / English speaking Tax accountant in Warsaw [6]

English speaking adds to the price but around 400zl per month isnt so bad. Ok, when you are starting out the accountant wont have much work, but once you get going there are a lot of things to deal with and if you have a lot of invoices,/customers and employees even 700zl wont sound bad. The point is to get up and runnning as soon as possible. You can of course try to find private accountants but English will be a problem for many.
polishinvestor   
16 Jan 2018
Real Estate / Expatriate mortgages + Property in Poland [24]

I once had an offer on a flat from a buyer with Canadian assets and income and his loan fell through too. You can of course purchase cash and then refinance within one year, as I have just done, but you will need to build up at least 6 months of steady income in that time as well as a future flow of income that is reasonable clear. Income from flats or properties gives you a lower multiple as far as how much you can borrow compared to earnings, but you should be able to borrow 4 or 5 times income even so. Just what out for costs and depreciation as it lowers your tax bill which is fine but when taking a loan out privately what counts are earnings after all deductions, whereas for a firm or businesses, they take things such as depreciation into account.

You have a 2-3 year time frame so I would invest some money in commercial property with a long term contract, banks look at these in different light compared to residential property where you run a heavy discount for income to loan ratio. You might be able to find something from half a mil but they tend to start 1M zloty upwards for something reasonable with a tenant that is likely to run the course of the contract. In a year or so you will then be eligible for a loan with which you will able to buy your house. There are some hurdles such as deposit size for houses over 250m2 and 500m2, with the deposit increasing the higher the hurdle you breach, which is worth remembering. The main thing at your stage is to develop an income stream in Poland in the next year or two and keep tax lower costs out of the accounts apart from the usuals such as council tax insurance etc.
polishinvestor   
14 Jan 2018
Real Estate / Expatriate mortgages + Property in Poland [24]

Flat prices are starting to go up now, though to be honest they have been dragging near to the lows for a few years now. Of course you have your pockets of excess and higher prices than 2008, but generally most areas are still below or well below 2008 levels. Still, I don't believe flats can be anything more than an effort to diversify as they have a lower yield than commercial and are more hands on (in the case of managed, your yield goes down further).
polishinvestor   
14 Jan 2018
Real Estate / Expatriate mortgages + Property in Poland [24]

You can try Hamilton May. Generally banks are wary if the loan is going to be attached to a Polish asset, given its cross border and the difficulties in getting a true state of play and of course in the future the possibility of calling in the asset. But you can try Hamilton May. As for buying tips, there is very little safety net here in terms of conveyancing, structural surveys, transfer of funds compared to the UK, certainly for residential assets and cash transactions. The fact you are wanting to use a bank, they will make you go through certain procedures to satisfy themselves that there are no financial surprises, but it usually comes down to you to make sure the house is strucural sound and that there are no hidden issues. There is a 5 year law for flats which allows the new owner to claim for hidden problems from previous owner but I don't know if that extends to houses to be honest.
polishinvestor   
10 Jan 2018
Work / Business ideas for Poland [63]

Poles are quite thrifty with their money. I was speaking to an airline exec recently and he said extras always sells badly on Polish flights. Poles will spend but won't overpay. Any business relying on unatural spending in Poland is going to fail.
polishinvestor   
10 Jan 2018
Work / Business ideas for Poland [63]

Are those things of any real use? when it comes to making money nowadays

Money makes money nowadays. If you don't have it you can't make it, unless you are the exception to the rule. Education and connections can help to make the first jump, but mind the gap as its getting bigger all the time.
polishinvestor   
9 Jan 2018
News / Poland in the European Union. Polexit? [559]

I would just say that having an opinion is fine, but trying to force material change in a country in which you don't live and are unlikely to live in on a massive issue such as EU membership for a country that will be unable to stand on its own, is something else. Those not living in Poland have no business throwing around internet petitions on EU membership. Come and live here, then you are allowed to have a say.
polishinvestor   
7 Jan 2018
Life / English family in Wroclaw! [70]

There are over 100 thousand Ukrainians alone in Wroclaw. The rest is a much smaller number but even so.
polishinvestor   
18 Dec 2017
Law / Investment advice - my options in Poland? [50]

There are some investments priced in euros but if you want to invest only euros it begs the question why limit yourself to Poland and not the Eurozone, where your options will be much greater and more liquid. If you mean you want to make an investment in Poland, betting on growth in Poland, but want it priced in euros, again you are limiting yourself. The best thing to do would be to find an investment in Poland that suits you, which will be in zloty. You can then hedge the currency risk by using a currency option if you wish. The EURPLN rate is pretty stable so you can buy 1 year options which you can renew each year for low premiums. Alternatively you can invest in a currency hedged Polish investment fund.
polishinvestor   
1 Dec 2017
Life / Moving to Krakow next year, 5000 zloty net. [48]

I was living like a king there for $2000 Canadian dollars a month

Well in that case there is living like a king and there is also living like a king. Many people spend more than than on the leases of their cars.
polishinvestor   
28 Nov 2017
Work / What is deducted from a salary in Poland apart from Income tax? [155]

Use otodom.pl or gratka.pl. Both sites have an option where you can choose between properties for rent and those for sale. Walbrzych is a pretty cheap city as far as living costs are concerned in relation to the big cities. If you want cheap, you should easily be able to find a 50m flat for less than 1000zl/m plus bills if you try hard enough.But consider paying a bit more as you'll get a few more comforts and more importantly better neighbours, giving you peace and quiet when you are at home.
polishinvestor   
16 Nov 2017
Life / Leasing or financing a used car in Poland? [3]

If you run a business it makes most sense to lease it as you can charge it fully (or half if car is also for personal use) to costs. So you get to deduct the VAT and strike some off the monthly income tax. So the car ends up costing as little as 2/3 of the price paid. You can also go the long term hire route where you get to strike it fully off each month since there is no differentiation on use. These deals look similar to lease where you can buy the car at the end of the period but you enjoy a zero deposit and your only worries are putting fuel in the car, the firm that owns it must take care of all repairs and servicing, something you need to do if leasing.
polishinvestor   
13 Nov 2017
Real Estate / Buying real estate in Poland advice [18]

I don't know Warsaw and investable areas, I stick to Wroclaw, but I suggest zou find someone knowledge on the ground that can point to which areas are worth investing in and which are not. Whilst all of the big cities are doing well, each has its better and worse regions. You need to decide on what or who your clients will be, then buy a property in a location that suits that remit. If you insist on residential and say the student subsector, you want a property close to schools or at least tramlines in an area of the city that will appeal to them.
polishinvestor   
11 Nov 2017
Life / Thoughts on pro vs cons when moving to Poland from New Zealand with Polish wife and daughter. Living cost. [9]

Better buy home in London and live in small flat in Poland.

Yields in London are still very compressed despite some home price weakness, you are lucky to clear 3 or 4% especially now that section 24 mortgage relief is disappearing. And with brexit around the corner, London prices are going to be hit the worst since they have run up the most. Its a risky time to enter the London market, although sterling is probably nearer the bottom than the top (still leaves 15-20% currency downside from here). Better the let brexit play out and then enter that market.
polishinvestor   
11 Nov 2017
Life / Thoughts on pro vs cons when moving to Poland from New Zealand with Polish wife and daughter. Living cost. [9]

If you want to live in Opole, that leaves Wroclaw as the nearest major investable city, with Krakow being further away. With residential investments, you will need to tend to your assets more often, so even the 100km to Wroclaw will become a burden. Commercial less so (some I visit once every 6 months), so that's something to consider as well. Some time ago when I was involved in residential property in the dolnyslask region, I had flats here there and everywhere and the travel costs were a big problem. Since then I am concentrated in Wroclaw and commercial only, while living about half an hour away.
polishinvestor   
9 Nov 2017
Life / Thoughts on pro vs cons when moving to Poland from New Zealand with Polish wife and daughter. Living cost. [9]

You may want to think about a house just outside of a major city while leaving a bit more cash free in buying your business interest in the centre. Flats can yield around 4-5% if talking major cities while with commercial you can get 5-10% depending on the location and which city. The bigger the city and the better the location, the lower the yield but you can find nice 7-9% in Wroclaw so I would assume Krakow is similar. I always say 10k a month to spend for a family of 4 is enough to pay the bills put petrol in the car and not to look at prices of things although on that money don't expect to have much saved by the end of the year. Yes you can survive on less than half that but thats what you'd be doing, surviving rather than living.
polishinvestor   
9 Nov 2017
Real Estate / Buying real estate in Poland advice [18]

If you know of any lenders

You can try Hamilton May, they are based in Krakow I think. And speak English.

"don't come here with the UK way of doing things in this industry"?

The higher up you go the more professional things are (which is another reason to go with commercial - you are dealing with large business lacking in emotion rather than locals which sometimes left emotions take over). That tends to be the case becauses its other peoples money they are dealing with and the onus is on then getting a good deal for their company within the law, rather than looking to bend the law or break it by those who have nothing to lose. Certain aspects are certainly different, but as long as you apply common sense and don't leave things to chance (that means paying for expertise when required), its a great way to play weak sterling and run a high yield in the meantime. Liquidity is pretty good in the biggest fastest growing cities, particularly if your asset is in a top location with good footfall. Of course you have to pay for this but that doesnt mean accepting a low single digit yield as in the UK, you can get high single figures although yields are getting more and more compressed as more people take an interest in Poland. Id say office space is suffering a bit from over capacity and while they are building record numbers of flats, there is still plenty of demand and a large chunk of deals there done in cash. Prices are still some way off pre GFC peaks in 2008, so there is still plenty to play for, but as I say, yields are going to be just 4-5% in better areas. You can get higher yields elsewhere, but you will need to be very hands on as you will be dealing with people that wont always have the ability to pay. So best avoided. So that leaves the commercial space. More professional, strong yield and given the long term contracts on offer, more stable.
polishinvestor   
8 Nov 2017
Real Estate / Buying real estate in Poland advice [18]

Brexit is slowly sapping confidence and pressurising the exchange rate lower. Currently its around 4.79, but a transition and a deal of some sort is in the price. That means plenty of downside if things don't go to plan. I personally believe the market is being too rosy and giving both sides too much credit, where in reality, neither side really wants to compromise to do a deal, both thinking they can get away relatively cleaning without, for various reasons. I think we can down down towards 4, or above parity for euro vs sterling, which still leaves a lot of downside for sterling from which to profit.

Warsaw being the capital, draws the most interest, but Wroclaw is second behind it, being the tech hub. I looking away from the capital Id look to Wroclaw first ahead of the rest. You mention buying a few flats for no more than 400k each. But I would caution against flats. The main reason being yield. You will struggle to get more than 4-5% certainly after costs. If you can afford a million or two, I would suggest commercial property rather then 3 or 4 flats. For that money it wont be prime location, but you can get some good smaller secondary units for that money, on a long term contract (5-10yrs), inflation indexed and on a yield of 7-9% depending on location and terms. Your tenant is likely to be a chain and will take care of the upkeep, you will be able to stay hands off. From experience I would say a far better prospect than dealing with the pitfalls and low returns of flats. I made the move from retail to commercial in Wroclaw some time ago and I certainly wouldn't go back.

Getting a mortgage without earnings in Poland will be tough unless you have a larger deposit or a long business history. Your best bet is to buy a first property, run that in the books for 6 months and then try one of the small banks such as mbank for a loan on the next.
polishinvestor   
8 Nov 2017
Work / What salaries are for IT specialists (Senior QA Engineer) in Poland? [59]

The German offer on pure financial terms is going to work out less given cost of living in Germany. As for saving 2000 euros, thats around 8500zl per month, leaving a spend of 6500zl per month on yourselves. You could probably squeeze a saving of another 100-200 euros on top of the 2000 but it won't be much fun living on less than 5000zl/m as Gdansk isn't cheap given its seaside location.
polishinvestor   
6 Nov 2017
Work / How to earn interest on Euro Account or Deposits? [5]

There is zero interest rate policy in the eurozone so so won't find any interest paying accounts without a long lock-up period and even then a measely rate offered. You can however earn 2% PLN in the new polish postoffice online bank and there is no upper limit!
polishinvestor   
2 Nov 2017
Law / Buying a car in Poland or Germany? [36]

Poles tend to believe something has irrational value, ergo they try to sell high.

Often they don't understand opportunity cost, that's often the case in small or rural towns. Time and opportunity lost is money.

I agree never buy a second hand car in Poland.

You can buy great used cars in Poland, but of course they are going to be priced at the top of their respective price bands. Those fresh out of leases are generally 3 years old and have been well maintained given they were always owned by the financial institution or loan provider. Given depreciation you can pick up these cars for around half of showroom value or so and still have a great car but for sensible money. Not cheap, more than average, but sensible.
polishinvestor   
31 Oct 2017
Law / Buying a car in Poland or Germany? [36]

You register the car at your local wydzial komunikacji. If you import from abroad you will need to pay an import tax depending on the engine size and I think more recently, age. There is a process which has been discussed elsewhere on thsi forum. People say cars are better in Germany but the reality is that you won't be able to buy a good car in Germany, or anywhere else for that matter, for peanuts. You can find cars in Germany that are cheaper than their equivalents in Poland, but they will have been prepared for sale. Nobody will sell you a good car on the cheap, that's the truth. As long as you are prepared to pay for it, you can buy a quality car in Poland that won't let you down. You can of course buy the same abroad, just be prepared to pay for it.
polishinvestor   
22 Oct 2017
Work / Confused ... 1 yr London Vs Poland Base hiring [30]

Its not a question of boarding schools. A good private school, with an entrance exam attracts clearly the brightest pupils, but also better teachers as they will be paid a lot better and will get to work with kids that want to learn, rather than those that don't. It only takes one or two to hold the whole group back. Futhermore, the contacts you make there along with the after school network once you leave, means progressing in that city becomes so much easier.
polishinvestor   
16 Oct 2017
Real Estate / Help need advice on buying property in Poland and dealing with the seller [16]

If you are worried about any debt, you need to get the KW number of the flat from the owner. With this you can go online and check if there is any debt in realtime. Your precontract will have included certain wording which stipulates whether the deposit is refundable of not. Zaliczka is a form of deposit that must be returned, while a zadatek does not demand legally a return of funds. As for letting the owner live after the sale, that's not that unsurprising. Often people need time to find somewhere else and secure a loan or whatever and you can write this into the precontract and final contract. Not long ago I purchased a house and agreed similar terms. It all needs to be on paper via a notary. although you can skip the notary at the precontract stage if you know what you are doing and can write the precontract yourself. As for payments, they can be made via the notary, so everyone is then secure.
polishinvestor   
23 Aug 2016
Real Estate / Buying a house in Poland. How realistic is the seller's pricing? Discount negotiation. [6]

The further out of town you go, the more hit and miss the pricing. Generally the difference between asking and sale price is about 20-25% when it comes to regular sized houses. Its not unheard of two have two similar properties in similar locations with a difference of 50% in price or more. But dont let that deter you. I was recently looking at a property in Wroclaw with an ask of 2.5M. It wasnt something I was really interested in but it was a means to an end. Anyway, the property was worth probably somewhere between 1 and 1.5M and after a short time discussing, the seller pretty much acknowledged that they need to come down. I didnt buy in the end as it wasnt something I was planning to do but it does show how out of line peoples thinking is sometimes. At the end of the day, people expect to be knocked down and that reflects in the asking price. Because there tend to be few transactions than in the west, people will acknowledge the buyer and reduced the price if pressed. Its still a buyers market in Poland, certainly for houses and flats, though good commercial is getting tough to find at good prices.
polishinvestor   
22 Jul 2016
Work / Taxes and ZUS on a second job in Poland [11]

Yes its called maly zus these days its about 440zl all in from memorey. You get the lower rate for 2 years and then it goes up to the full 12xx or whatever it will be in two years time. Its an incentive for people to start their own businesses. From 2017 the tax rate I think is due to drop to 15% from SMEs, not sure if parliament has voted on it yet or not, but likely to go through.