The total number of Poles who live in rented flats is in excess of 2 million. The share of rental in the fulfilment of domestic residential needs is at about 5%, while in the Western Europe this level reaches 15-20%. The growing trend makes more and more people in Poland invest in real estate for […]
The total number of Poles who live in rented flats is in excess of 2 million. The share of rental in the fulfilment of domestic residential needs is at about 5%, while in the Western Europe this level reaches 15-20%. The growing trend makes more and more people in Poland invest in real estate for rent. How to do it using your common sense, to minimise investment risk? We have discussed this problem with Agata Karolina Lasota, the owner of Lasota Business Consulting, a real estate agency from Gdynia.
We are meeting again to talk about the real estate market. Today, I would like to discuss the subject that has become very fashionable recently — real estate as investments. Poles are buying a lot at present — what is the source of this interest?
The answer is simple. Financial markets are highly volatile, while bank deposits are not very attractive. Real estate has been considered to be a safe form of depositing capital and investments. According to the latest studies by the domiporta.pl service, an average return rate on rental in Poland is at 5.28% at present, but can reach 6 or even more per cent at most attractive locations. Such indices are very decent today. Therefore, it comes as no surprise that according to the Chamber of Fund and Asset Managers, 51% of Poles who invest have selected real estate for the investment of their capital. You know this issue both from the investor’s and buyer’s perspectives.
Let’s talk first about real estate for investment looking from the investor’s angle. I have cash and I want to buy real estate that is to bring me profits. How to buy it and what to buy in order not to lose my money?
First of all, you do not need all the necessary cash — it is enough to have creditworthiness. Mortgage is cheap today and with a good business model an attractive portfolio of real estate can be developed, without spending much money at the same time. However, cash certainly makes things easier. At the Lasota Business Consulting agency we look for real estate as investment on behalf of our clients, taking into consideration two types of profits: ongoing revenues on rent and the growing value of real estate in time. We always assist investors in drawing up an investment plan that will enable them to minimise risk and estimate potential revenues and profits.
What is an investment plan?
Let’s assume that you have 500-600 thousand zlotys and want to buy real estate, to be used for letting. This is all you need to know. We are responsible for everything else. When creating an investment plan, we consider different aspects, such as real estate from the primary or secondary markets, the condition of an apartment and the costs of refurbishment, if necessary, a location, an area, the number of rooms, their arrangement, a parking space in an underground garage, etc. All these elements affect an actual return rate and how easy it will be to find a reliable tenant. We can help in this latter matter as well, as our expertise is in long-term rental for foreign businesses and institutions. This type of rental is safest and most profitable. In general, as regards profit on rental, everything depends on how fast we can find tenants and if an optimum rental rate can be achieved.
Let us look at this subject from the other side. I want to rent an apartment in the TriCity. At a good location and in a high standard. What can you offer me?
The most popular locations in the TriCity remain the seaside zone in Gdańsk, the districts of Przymorze, Oliwa, Wrzeszcz, and Śródmieście, and in Gdynia certainly Orłowo and Kamienna Góra. Apartments in the upper and lower Sopot also attract considerable interest. The problem is that the demand is higher than the supply. We have a line of investors who want to buy real estate at most attractive locations and we also have clients who are looking for attractive apartments or homes for rent. Therefore, if you own such real estate and would like to let it, agents of Lasota Business Consulting will be able to find a reliable tenant quickly.
Why is it worth buying, selling, or renting with Lasota Business Consulting?
Because we offer a custom-made collaboration model, with a client who either buys or sells. This model provides numerous benefits, which will increase the visibility of an offer, not only on advertising portals but also among a large group of our loyal clients, which will accelerate the process of looking for a serious buyer or tenant of real estate. We offer the LBC Exclusive service to our clients, which ensures the better visibility of an offer and, most importantly, a number of benefits, such as the most effective and proven foreign advertising portals, specialist magazines and the newsletter of Lasota Business Consulting Real Estate, and, last but not least, the presence in social media.
AUTHOR: MAX RADKE PRESTIGE 89. 02/2018
http://prestiztrojmiasto.pl/magazyn/89/biznes/nieruchomosc-inwestycyjna-na-wynajem
