If you are looking to buy in Poland, it is worth looking at some of the smaller towns and cities where property prices are much lower that either Krakow or Warsaw, and have the potential to have the same amount of growth for a smaller initial outlay.

Cities such as Katowice and Gliwice are seeing the same sorts of excellent rates of growth that Warsaw has seen in the past few years, however there is currently lower interest from foreign investors meaning you get your pick of property and there is less rush to buy. Other third tier cities are starting to see higher growth than the large cities as prices are pushed higher and people are looking to buy cheaper properties.

According to a recent survey by Savills, Polish properties are, on average, increasing by 30% a year, making the eastern European country still one of the top places to buy for many property investors.

Related posts:

1. Polish Property Push Top of the European house price growth league table is Poland. Values have taken a huge jump in the past year, with the average price...
2. Polish Paradise? The cities of Warsaw and Krakow in Poland are offering investors some great opportunities in property with high growth potential, low risk and some great...
3. German Property – in for the long-haul Many buying foreign propertys are looking to the German market to snap up a bargain. According to Halifax, Germany is the only western European country...

Once you have found a property to buy, it is advisable to hire an experienced notary to help you through the buying process. Notaries are publicly appointed officials who have no loyalty to either the vendor or the buyer – their main role is to draft legal documents, ensure that all relevant taxes are paid, and to register the property transaction with the relevant authorities. You are able to hire a secondary notary who will act in your interests, but this is not mandatory. If you do hire a notary, it is advisable to find one who is well versed in not only Polish law, but the laws our your own country and who speaks your language as well as Polish fluently.

It is unusual for indepedent valuations of the property to be taken, although as the market continues to mature, it is something that the market may tend towards. Surveys are also not required meaning most people do not have a survey. This means that there are no licensed surveyors in Poland. If you are worried about your property and would like a survey done, you can go to a local licensed builder and commission a report from him.

Polish banks will lend to foreign investors although proof of income is usually required. Many of the major Polish banks will fund self-employed and buy-to-let as well as standard mortgages.

Once a price has been agreed for the prooperty, a preliminary agreement will be signed at the notary’s office. A deposit will need to be paid at this stage – the deposit varies but is normally 10% for a resale property and 20% for an off-plan development.

It normally takes under three months between this intial phase and completion. During this period of time, the notary will carry out all the necessary searches and checks on your behalf. Once these have been completed, the purchaser will need to pay the remaining balance on the property to the notary who will then transfer the monies to the vendor. Agents fees and legal fees will also need to be paid. Agents fees are varied and should be negotiated at the start of the process. Legal fees are around the 8% of the property purchase price.

If you then decide to sell your property within three years of buying it, you will be hit with a 10% capital gains tax.

Related posts:

1. Greece: A guide to the property buying process Greece is a popular tourist and investor destination, however the is surprisingly still a lot of potential in the property market. Membership of the EU...
2. Germany – the Buying Process Once you have found your perfect property in Germany, the first thing you should do is find a good notary or lawyer. In Germany, a...
3. Morocco – A guide to the buying process Morocco is a country widely tipped by foreign property investors as a good place to buy for future returns. With the King’s Vision 2010 well...

In 2005, Poland saw high increases in the amount of foreign property investors – not just in the major cities, but also in more rural areas. There is only a limited supply of good quality property, and this over-demand and under-supply is fuelling a mini housing boom which is currently in it’s early stages.

Warsaw
Many people are under the false presumption that Warsaw is a concrete jungle, depressing, boring and a huge wasteland of Societ-era housing. However, in the 15 years, there has a been a huge change in the face of Warsaw. Naturally, the city still has it’s problems and parts of the concrete jungle remain, however there is now a thriving metropolis in the heart of the city with plenty of culture and history on show. As Poland’s capital city, it attracts a lot of tourists all year round, so rental yields are good. Growth in the city is also fuelling demand for properties, so buying a good quality property now will probably tield good dividends in the future.

Krakow
Krakow is located in the south of Poland on the Wisla River. It is one of the country’s old cities and also one of the most beautiful. It has a history which can be traced back to over 1000 years. As a past capital of the country, it has a diverse, fascinating history with uprisings, border-shifts and varying occupations.

Many Poles consider Krakow the real heart of the country because of it’s deep historic roots and because of this, the city attracts huge volumes of tourists each year, with more than 4 million taking in the sights each year. The huge tourism trade means that rental properties would be a good investment in the city – there is a year-round tourist trade so rental income should remain fairly consistent throughout the year.

Poland Foreign Real Estate Investment
In the past, the aquisition of real estate in the country by a foreign investor will require a permit from the Minister of Internal Affairs and Administration. However, with Poland’s entry into the EU, European foreign investors no longer need a permit, however there may be certain restrictions in place such as restrictions on the type of land being purchased and it’s intended use. It is wise to contact a local Polish solicitor who will be able to guide you through all the local laws and customs before you complete on your property.

Related posts:

1. Polish Property Push Top of the European house price growth league table is Poland. Values have taken a huge jump in the past year, with the average price...
2. Polish property still hot Poland still tops the list for many property investors looking to buy abroad. Earlier in the year, research showed that the Polish market was still...
3. Panama: A perfect paradise for investors For property investors looking for their perfect coastal property in a slightly more unusual place, Panama may hit the spot. With over 1,400 miles of...

Surprisngly, the European market is still buoyant, despite the US property market stagnating. The Royal Institution of Chartered Surveyors in the UK did a survey comparing house price growth rates in 26 European countries. The results showed that most countries saw solid growth figures, above the rate of inflation.

The growth across Europe has surprised some analysts. 2006 was predicted to be a year when the European housing market would finally slow because of interest rate rises, stretched affordability and mass increases in property supplies. However 2006 proved to be another strong year with the only country having a negative increase being Portugal.

Whilst many Poles are headed out of Poland to find an outlet for their varied skills, it seems that many people are also headed into Poland with mainly English investors grabbing property in Poland’s largest cities. Combined with an influx of investors and one of the fastest economic growth rates in Europe meaning many Polish people can now afford to buy their own houses, the housing market has found a surge in prices. Demand is now much higher than supply, again pushing prices up. The city with the largest rise, Krakow, has also benefitted from several international companies opening up offices.

City analysts are predicting that this won’t be the end of the bubble – prices are expected to rise for another 3-4 years at least, so jumping on the Polish property band-wagon now may prove to be a wise investment.

If you are looking to invest, property doesn’t come cheap – a one bedroomed city flat in Krakow will probably cost in the region of £60,000-£111,000. A three-bedroom luxury apartment in Krakow on the main square will be around £650,000. If you are prepared to live slightly further away from the main square, the same apartment will drop by about £30,000-£40,000.

Related posts:

1. Polish property still hot Poland still tops the list for many property investors looking to buy abroad. Earlier in the year, research showed that the Polish market was still...
2. Polish Paradise? The cities of Warsaw and Krakow in Poland are offering investors some great opportunities in property with high growth potential, low risk and some great...
3. German Property – in for the long-haul Many buying foreign propertys are looking to the German market to snap up a bargain. According to Halifax, Germany is the only western European country...