Buying property as an investment

Wise investors buy cheap properties in the hope of earning considerable income from sale or rental. Many properties have a low price and are also located in a favourable area. It is therefore worth assessing the property market in order to obtain additional funds. Buying property as an investment is a popular way of putting capital to work in Poland!

How to invest in property wisely

Look for bargains – compare the prices of similar properties in many cities and choose the most advantageous location, bearing in mind that, for example, a flat to let in Katowice may attract a lot of attention from students.
Analyse the property market – think about which group of tenants the property will appeal to (e.g. businesspeople, contract workers, students, a young couple, a large family, older people) and how much they will be able to spend on rent. Once you have the data, invest in a private or commercial property, paying particular attention to the state of the local economy.
Negotiate the terms of the loan – apply at several banks and get help from a financial adviser.
Increase your own capital – invest your money, make it work for your benefit, and obtain the necessary financial liquidity. A down payment will lower your loan instalments. If you save the full amount, you will not need to turn to a bank, and rent payments will be a welcome cash injection for you for many years.

READ ALSO – WHAT IS AN OPEN HOUSING ESCROW ACCOUNT

​Why is investing in property advantageous?

Property is one of the safest ways of investing capital (it brings in income every month) compared with other "frozen" investment funds. Moreover:

The tenant helps the borrower repay the loan by paying rent. The household budget is therefore not excessively burdened.

The rent paid monthly by the tenant is an additional source of income (after the loan has been repaid).

Over time the rent may rise (along with inflation).

READ ALSO – SELLING A PROPERTY USED IN BUSINESS ACTIVITY

Get to know other forms of investment chosen by Poles:

Investing in gold – which, unfortunately, can bring spectacular profit as well as losses, because the price of the metal depends on the economic situation in the world. However, you should not expect excessive profits, since investing in precious metals is long-term in nature.
Investing on the stock exchange – this requires a great deal of knowledge and enormous skill and, moreover, carries considerable risk; the WIG indices may lose value.
Bank deposits – only a small amount of capital is needed to open a deposit. Fixed-rate deposits guarantee a safe, albeit low, return. The most serious drawback of deposits is the need to freeze capital for the duration of the deposit, as well as the loss of interest if you close the deposit before the end of its term.
Buying bonds – their maturity is over 10 years, but it may be even longer. Interest is paid in instalments throughout, which has a beneficial effect on finances, and the interest paid is deducted from the tax base. On the other hand, securing public issues reduces the possibility of investing in other projects that require access to the secured funds.

As you can see, an investment in property can provide you with a steady monthly income. If you want to earn consistently, invest in property – maximise your profits!