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Buying a flat in Krakow; prices are still falling?


jon357 71 | 20,424
10 Jul 2013 #181
You're forgetting that not all mortgages are sold by banks and also that the capital for a broker mortgage may come from a bank, a subsidiary of a bank or another source altogether, especially for larger mortgages or those where the client's profile or requirements don't fit a bank's offer.
Ryz - | 43
10 Jul 2013 #182
Jon we're talking about a loan from PKO for a flat in Krakow with 35% paid upfront. Post #2, GTO fella. It's all there mate.

to the op: don't mind us and get in touch with your local branch. I personally recommend Millennium but do shop around.
jon357 71 | 20,424
10 Jul 2013 #183
a loan from PKO for a flat in Krakow with 35% paid upfront.

It's an odd one, isn't it. Perhaps it's because he doesn't live here and the mortgage was arranged through something like Oppenheim Kredit (where the actual mortgager can be any bank). either that or he's mixing up his currencies. That or he's either adding or omitting part of the story.
Ryz - | 43
10 Jul 2013 #184
Plus I don't think being Norwegian (ie not an EU member) can explain it as Norway is still part of the EEA and the Schengen Area.

I'm guessing it's a simple currency faux pas. (sounds posh when you say it like that doesn't it? ooh lah lah)
jon357 71 | 20,424
10 Jul 2013 #185
I don't think so either - perhaps a lack of savoire-vivre ;-) - though worth mentioning that outside the eurozone banking regulations are national rather than EU-wide and the regulations for non-residents getting credit can be more stringent, not to say awkward in PL.

I wonder if he meant Norwegian Krone? 10k of those would only be 1272 EUR or 5516 PLN per month...
Ryz - | 43
10 Jul 2013 #186
I don't think so either - perhaps a lack of savoire-vivre ;-)

ha! well played my friend! touché!

I wonder if he meant Norwegian Krone?

It could well be but still feels quite steep unless of course he's talking about household income.
mcm1 2 | 81
11 Jul 2013 #187
I can quite believe it as we have been through a similar scenario ourselves recently.
I have no idea how the banks in Poland actually lend money but from our experience I would suggest it must styffle new business/ growth in Poland.

Rough figures for comparison, all in PLN for simplicity.
Deposit 1m
Loan/mortgage applied for 300k
Joint income 428k gross
Pension forcast in 7 years 170k+state pension 70k
So far 3 banks have turned us down, one has agreed but we have to have a Polish resident on the application.
Monitor 14 | 1,820
11 Jul 2013 #188
I was thinking that a flat might be available around 120-135k PLN.. but tough in Krakow.

What is available for that price in Krakow? 30m2 studio or maybe something bigger in suburbs?
delphiandomine 88 | 18,454
11 Jul 2013 #189
No. Banks in the EU are subject to regulation, this isn't the wild west. There is no way a Polish bank would demand anyone 17x the net average wage to approve a loan for flat in Krakow. Unless you have a criminal record in which case they could flat out refuse you a loan. You get that kind of demands from a loan shark, not a EU based bank.

It's not unrealistic - Polish banks are under a hell of a lot of supervision when it comes to lending (hence why Poland has little to no exposure to Greece/etc) - and such a ridiculous offer might be made to ensure that they get their money. I have a friend who works as a mortgage broker, and he told me that it's quite common practice for banks to make ridiculous offers rather than to simply refuse - one such example was asking for a margin of 10% on a 2m PLN mortgage.

It's worth pointing out that the law has recently changed to all but ban lending in foreign currencies unless the income is also in the foreign currency. Perhaps they were asking for such a ridiculous offer to discourage him?
jon357 71 | 20,424
11 Jul 2013 #190
5k pln is not a large salary.

So far 3 banks have turned us down, one has agreed but we have to have a Polish resident on the application.

Perhaps they were asking for such a ridiculous offer to discourage him?

It looks like this is the case.
poland_
11 Jul 2013 #191
and they told me they could give me credit based on a 35% input, up front and a average monthly income above 10k Euro. and permanent work contract.
but i guess it is a consideration of the bank, Income/ cash input/ value of the real estate.

First question: How old are you, over 45 by any chance?
GTO 3 | 22
13 Jul 2013 #192
Hello. i know the difference in NOK,PLN and EUROS. there is not any confusion.
but my age (i am 28) and my payments are not the issue here. i just replayed what the bank told me. since i was a NON EU citizen and work in a NON EU country.
delphiandomine 88 | 18,454
13 Jul 2013 #193
but my age (i am 28) and my payments are not the issue here. i just replayed what the bank told me. since i was a NON EU citizen and work in a NON EU country.

A clear "go away" offer, then.
Monitor 14 | 1,820
13 Jul 2013 #194
Hello. i know the difference in NOK,PLN and EUROS. there is not any confusion.
but my age (i am 28) and my payments are not the issue here. i just replayed what the bank told me. since i was a NON EU citizen and work in a NON EU country.

Ah, so in Norway people don't earn 10k Euro per month....
Norwegian 5 | 56
13 Jul 2013 #196
Hehe

First time I went to the lady in the bank with my details there was no problem to borrow 2M pln! I needed not more then 700K, so I tought that that was not going to be any problem!

It took me nearly a year to have all the paperwork done, and it felt like I had to take a new copy of all my papers everytime I did something.

Generaly: ARG.

BTW: 10K Euro a month is not very strange in Norway (brutto), but you have to remember that the government take a big pice of this for tax reasons!
local_fela 17 | 172
17 Jul 2013 #197
Well.. everyone got focused in an argument with '10K Euro' than the actually question...
Maluch 30 | 95
23 Sep 2013 #198
Merged: KRAKOW MIESZKANIE - PRICES GOING UP / down / Stable?

Thinking about buying a small flat in KR.. but may hold off until next year ?

What do you 'experts' think? haha going up or down

Any factual statistics or info on Krakow market appreciated.

Looking for a small 30m2 sub 280,000 zlotych flat . Ideally 200k max!
ragels
23 Sep 2013 #199
Euro/Zloty will probably go up in the coming months or 1-2 years, so prices in Poland go up a little too.
Monitor 14 | 1,820
23 Sep 2013 #200
Depending which data you're watching prices in Poland are going down or up:

Is now a good time to buy an apartment in Poland?

We've September 2013 and reviewing the blog , I realized that the last entry on the housing market have made in April 2011. How time flies! In previous entries took on a serious expression on his face and warned against buying a house because of the still high prices. And probably well advised , because of the previous entry , housing prices fell on average by 10% , and since 2007, when I made the first article on the subject nominal price drop has already reached more than 20% .


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