3 Sound Polish City Investments for the Buy to Let Landlord
Author: NativePoland
Category: Real Estate
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For buyers who need their purchase to generate an immediate
cash flow the most advanced markets are Warsaw, Wroclaw and
Krakow.
It was only a few years ago that the Buy-to-Let market in
Poland was a case of placing an announcement in a free ads
newspaper and sorting out the ensuing torrent of phone
calls yourself.
The system still exists in many places but with a rising
middle class, cash rich and time poor, agents have started
to take a larger share of the market. Needless to say this
has greatly helped foreign investors looking for tenants
although it is still only a developing service in major
cities and towns.
For buyers who need their purchase to generate an immediate
cash flow the most advanced markets are Warsaw, Wroclaw and
Krakow.
All three have large student populations looking for cheap,
basic accommodation and so even a buyer with a modest budget
can invest in an apartment that will rent quickly. All three
also have a growing young professional sector keen to live
in modern developments close to, or within easy reach of,
city centres.
Warsaw and Wroclaw go one further. Their commercial and
business hearts are growing at an exceptional rate. Much of
this is due to foreign direct investment which brings
managers from abroad on a temporary basis. This growing
number of senior and well paid workers need somewhere above
the norm.
The result is a burgeoning corporate let market and while a
higher degree of capital is needed to provide the quality
finish and furnishings required, yields can be substantially
better.
But there are two reasons for caution when looking at
Warsaw, Krakow or Wroclaw. Firstly the more developed Buy-
to-Let is in any city, the more it attracts other foreign
investors because of its very ease. Thus 'buying clubs' rush
in and some new complexes can end up dominated by rental
investors. The glut of apartments causes low yields and long
waiting times for good tenants.
Secondly although these cities have agents who speak English
be sure both you and they agree what certain terms mean.
Buyers have often asked about Property Management, agents
laugh and reply, "Of course we offer that". Dig deeper. For
some they interpret this service simply as rent collection
and paying service charges while providing nothing to cover
repairs or emergencies.
If your aim is to buy and then to let quickly there are
cities in Poland that offer this option but think carefully
about who you want to rent to before purchasing and
remember, the easier it is, the more it will attract other
similar investors. Higher yields and higher capital gain are
to be found off the beaten track.
For more info click on http://www.NativePoland.com
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Keywords: Poland, Property, Buying Property in Poland, Property investment in Poland, Buying in Poland, Buying a House in Poland
View Count: 68
Date Submitted: 5/28/2008
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