Poland Vs. Slovakia

S

sullypep

Guest
Hi all,

I'm new to this so here goes.

I'm looking to buy/invest 20-30K deposit in a residential property for the purpose of leveraging off the Capital appreciation in 3-5 years. I done some research on Europe as a whole and have settled on Slovakia or Poland as the countries to concentrate on. I've read the forums on both countries individually but nothing compares them.

Both countries have good economic outlook( in certain areas) for the next 3 years, there are rental markets and both countries have tax treaties with Ireland.

Things I don't know are, how much of an issue is the language barrier, what are the banks like with Irish, and how established are property management companies in each country.

Any guidance and feedback appreciated

Sully
 
sullypep said:
Both countries have good economic outlook( in certain areas) for the next 3 years, there are rental markets and both countries have tax treaties with Ireland.
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Wouldn't reckon too much on the prospects for Slovakia. While the country is improving -- slowly, and from a low base -- it isn't the most exciting place to risk funds at this point. I'm no great fan of Poland, with the exception of parts of Warsaw and Krakow, but it beats the pants off Slovakia by a mile.
 
Thanks for the feedback auto. I found and enjoyed your link to abode.ie. Guess it's all about perspective in any game.:)

I've looked at alot of European property,even the US and Canada, but decided on somwhere close enough for the the first investment abroad. Poland or Slovakia's C.A. outlook for the rest of '07 is 12-15%, thier rental markets will cover repayments on mortage in the lower end of market that I can afford and I believe there will still be a sellers market in 3 years(better 5) so I can offload if needed.

Not being smart, but what info do you have that says different or where am I better off looking? If Poland kicks the This post will be deleted if not edited to remove bad language off Slovakia, why, and do you think this will continue?

To be region specific I was looking at Bratislava and Wroclaw.
 
Re. the questions is the original question re. Poland:
* language is a barrier in Poland, but can be overcome with English speaking solicitor, agent, property management company etc.
* mortgages are available to foreigners in Poland, with non-recourse loans up to 85% LTV, up to 5 years interest only, interest rates of 5.15%, terms of 30 years etc.
* property management companies are widespread but vary in quality and terms of contracts but you can expect to pay between 15%-20% for property management.

Re. your choice of Wroclaw vs. other Polish cities, it is a city with a very strong medium-long term potential, as it is receiving huge amounts of foreign direct investment in the form of IT/electronics jobs (the scale of the new factories 12 kms south of the city is breathtaking) and has a brash, go-go culture. Property prices up 74% in 2006 (which won't be as high in 2007 but will still be strong) but it has the fundamentals to make it a good medium - long term buy-to-let investment.
 
Cheers Propman! So I guess your saying Poland over Slovakia. Picked Wroclaw for the same reasons you stated.

Surprised at the management fees, a bit on the high side. Still interest only loan option is a definite plus.

I'll see if there's anymore posts bating for Slovakia otherwise I better brush up on my Polish speak.
 
sullypep said:
I'll see if there's anymore posts bating for Slovakia otherwise I better brush up on my Polish speak.
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I have invested a lot of money in Bratislava and I have read nothing in this thread that makes me think that I made a mistake.
 
Do you think your money was better spent in Bratislava or could you have made more in Poland?
 
sullypep said:
Do you think your money was better spent in Bratislava or could you have made more in Poland?
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I do not know enough about Poland to make that comparison.
We are very happy with our investment in Bratislava and are expecting very good returns from it but you can never be sure of anything until the day that it is finally closed out.
I think that in either place it is all down to doing your homework and finding the right property.
 
Hi all,

I invested in Wroclaw 18 months ago and my apartment will be finished next week. It was without doubt the best investment I have made but that was down to timing and luck, as much as research.

I remember at the time I was comparing Poland to Slovakia and both seemed to have huge potential. I found the development in Wroclaw first and went with that, and it worked out better than Bratislava in the meantime.
That is not to say the future will be the same. One of the reasons Wroclaw has done so well is it's forward thinking local goverment. They have made efforts to reduce red tape and actively seek out FDI.

Bratislava has not shown the growth I expected, but I like to see that as an opportunity. Maybe the growth potential is still there and waiting to happen.

I know the Polish market very well now and have invested again and am very happy, but I have done no more research on Slovakia.

I am wondering where Auto would recommend at the moment? Hungary maybe? Let us know.
 
what about Poznan in Poland?

Airlingus and ryanair (bless) fly into Poznan airport twice a day, college city and the property values have more than doubled in the last few years.

Excellent long term and short term rental opportunities.

Warsaw property is pretty expensive at the moment by comparison.

The Polish population won't stay in Ireland for ever, especially with building sites closing in Dublin.

Just a thought.
 
By popular demand Poland seems to be the out and out winner in this poll. This either means I'm getting in late or about the make a good decision. Thanks for all the comments. I'll post how it goes.
 
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