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Sky View Apartments, Krakow, Poland
Summary
Sky View Apartments is a high quality development in a great growth location – Krakow - just minutes from the centre of the city.
The area is not far from the city centre, office centres and a range of leisure and shopping facilities, so is a classic sought after middle class location.
This is a unique opportunity to buy a property in an excellent development with great payment terms and in a property market with great fundamentals that will provide long term capital appreciation.
• Extra low payment terms with only 5% deposit
• Excellent value (good quality build at market beating prices)
• 5% discount on list price (we can only hold this until 12th November)
• Krakow market expected to start further growth phase in 2009
• High standard development not far from the city centre
• Experienced developer who delivers a high quality product
• Great transport links (next to bus and tram)
• Great mortgage finance available at 80-90% LTV & rates as low as 4%
Poland, and Krakow in particular, have great economic fundamentals that are set to see salaries and demand for property continue rises for the next few years.
With the supply of property still at a very low level, excellent mortgage finance and demand expected to increase again in 2009, Sky View Apartments is very well positioned with only 5% deposit to pay before completion to deliver investors with excellent returns.
Download:
Investment Report
and
Price Spreadsheet.
Market Analysis
Back in 2004 Krakow very quickly followed Warsaw’s lead with a period of very high growth that lasted for almost 3 years.
Such strong price rises were driven by Poland’s excellent fundamentals, such as:
- Low supply of property to due to years of under-building and archaic planning laws
- Huge FDI, creating jobs and improving infrastructure
- Rising salaries
- Huge inflows of cash from the EU entry in 2004 and the confidence that goes with it
- Access to cheap and high LTV mortgage finance, making affordability very high for most Poles with a job
- Population increases in the cities as Poles moved from the countryside to the cities in search of jobs
- Strong GDP growth, increasing wealth and disposable incomes
These very same fundamentals are still in place today.
As 2007 started prices were already slowing down in Krakow a trend that has actually seen prices fall back over the last year, as sellers/developers had to become more realistic as affordability was stretched.
During this period of price corrections economic development continued and affordability came back into balance.
Poland still has great fundamentals and today prices are ever more affordable. The economy is growing and large investments are taking place before the Euro 2012 football championships.
Furthermore, taxes (particularly for the rich and middle classes) are set to fall over the next few years. This will massively increase disposable incomes, making property ever more affordable.
Not to mentioned hundreds of thousands of Poles in the UK and Ireland who have been making good salaries over the last few years and are sitting waiting for the right moment to buy a property back home in Poland. Now that prices have stabilised and set to rise again we believe many will do just that.
It’s a really simple equation that will see Polish property prices rise again over the next few years.
Overall we now see Polish property as a great buying opportunity.
Prices
| Prices | 350,000 – 1,075,000 PLN
(£76,000 - £234,000) |
| Payment terms | 5% deposit (only!!!)
95% completion |
| Discount | 5% (until 12th November) |
| Completion Date | July 2009 |
| Finder’s Fee | £1,000 (flat rate specially reduced for the credit crisis) |
| Completion Service | FREE – special offer to complete and snag your unit for free saving around £500 per unit |
| Legal Fees | 6,000 PLN (inc VAT) per unit |
Please download the
price spreadsheet
for full price details.
Price Comparisons:
Prices range, based on internal area, from 6,199 – 7,399 PLN/sqm including VAT (typical is 6,899 PLN/sqm inc VAT).
Our market comparables are based on developments of similar quality and similar “zone 2” type locations:
| Development | Price PLN / sqm (inc VAT) | Price variance |
| Salwator City | 9,500 | 38% |
| Mozarta | 7,699 | 12% |
Typical prices of other developments are around 20% higher.
Plus we have a 5% discount until the 12th November.
The pricing point is for the mid-market and thus demand will always be strong.
The 5/95 payment terms are excellent and give investors the potential to make high returns on investment.
Location
Sky View Apartments is located in a fast developing district of Krakow called Podgorze-Ruczaj.
The development is situated on Przemiarki street which is a quiet street not far from Bobrynskiego street, which is one of the main streets in the Ruczaj district.
Google Map link
Sky View Apartments is found in an attractive location. It has very good transport access to many parts of the city.
The city centre is just a few minutes away as are a number of leisure and shopping facilities.
Employment zones, such as office centres and nearby scientific research establishments are all within convenient reach.
Overall the location is a good all-rounder, and will be especially attractive to the mid-segment of the market.
Development
Sky View Apartments will be a 5 storey building with a modern architectural design and will be built to very high standards.
There are a range of apartments available from 44sqm to 134sqm.
All apartments have balconies or terraces, many of which are quite large, reaching up to sizes of 78sqm. This will provide residents with suitable indoor and outdoor living.
Within the building there will be 3 stairwells and 3 lifts, providing quick and easy access to the apartments.
Common areas of the building are also not forgotten about. Good quality materials will be used throughout and there will be a manned 24 hour reception desk providing security to all residents.
All the apartments have a very functional layout and a outside space in the form of a balcony or terrace.
Many of the apartments will have a southerly aspect, giving the apartments a light airy feel.
Parking is available both outdoors and in the underground car park.
Purchase of parking is compulsory on this development and is very important both from a rental and resale perspective with the ever increasing number of Poles owning a car.
The apartments are black finish, we can arrange the installation of white finish (ie tiles, painting etc) before completion takes place.
Kitchens are not included and can be arranged nearer the time of completion, current estimates indicate that one should budget 6,000 – 10,000 euros for a good quality kitchen. Property Investment International has a full program available for the sourcing, design and installation of kitchens at a very competitive price.
Mortgages
The mortgage market in Poland has developed considerably over the last 4 years since EU entry. Polish banks and mortgage brokers are now well adept at providing mortgages to foreigners.
As can be seen from the table below mortgage terms are very favourable in Poland, which is one of the drivers to future property price growth and high returns on investment for investors.
| Term | Rate |
| LTV | 80-90% typical |
| Interest Rate | Depends on currency:
4%+ CHF
5%+ Euro
6%+ PLN |
| Term | Up to 40 years |
Refinance and non-status mortgages are also available (subject to status) in Poland.
Interest only mortgages are not currently available in the Poland.
The finance market for foreigners in Poland is developing all the time and thus refinancing at a higher price in the future should be relatively straight forward.
Please contact us for a quick and easy mortgage quote.
Rentals
Sky View Apartments is a high quality development in a good location, with quick access to the city centre, office centres and a range of amenities such as leisure and shopping facilities.
Quality and location, such as this, are the mainstays that attract tenants.
Furthermore, the apartments have been designed very efficiently and compactly, thus are well suited to rentals and there is no wasted square meterage. This a key component for investors to achieve high rental yields.
Looking at current comparable rental prices in the area we predict that a typical unit will rent at around 30-35 PLN/sqm/mth.
This gives typical yields of around 5.0 - 6.0% (unit dependent).
Letting & Management:
Property Investment International provides the whole range of property management services to ensure the post-sale details of your property ownership are taken care of.
For example, we provide the following services:
1. Completion Service – completely FREE with this deal to get your property snagged and handed over to you
2. Kitchens & fit-out – we look after all the details to install cost effective, but high quality, kitchens into your new property
3. Furnishings – we can provide any furnishings required, from lights & blinds up to beds and TV’s, we also customise these furnishings depending on the needs of the rental market
4. Lettings – we have a full rental program that gets tenants installed into your property
5. Management – our Polish property management only costs 5% of the monthly rent and looks after all the details so your don’t have to
6. Resales – we then time comes to sell your property we provide your exit strategy.
More details of our
Letting & Management
services on this link.
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