foreign property dilemma,yes or no?

kmb

Hi all,just wondering what people think re.investing in poland in a apartment complex which is arranged by a co.cork auctioneer.

We are been advised the return on investment is approx 4% annually and what would the tax implications be?I amthinking of investing as the prices are €25k upwards and i am on the lower tax bracket.would there be double taxation on any profits?

The apartments are 110 kms from berlin and are managed by their company i think.

Would i be mad to rely on prices increasing as a pension surplus when i retire in 25 years?Any advice appreciated.

kind regards, kieran

kmb

Anyone got any knowledgeable input or advice?Anyone done this before?

Need all help i can get....


regards kieran

EKRIUQ

Firstly I'll point out that I'm no expert on investing in Poland but going on experience of people I know who have invested in the eastern block countries, their regretting every moment of it. They were encouraged to invest by the promise of a guaranteed income and when the country (Hungary) joined the European Union they were told their investment would increase greatly in value.

Neither of the above things have happened, their guaranteed income has been eat'en up by the management company and their was no huge increase in the value of the appartment and at the moment its no advantage what so ever. On reflection they'd of been better off to buy in Ireland, Uk or Spain.

The company they bought the property off were very good and organised a very good solicitor in Hungary and translater and everything was above board but its just the investment was'nt wasn't what they expected and at the moment can't wait to be rid of it.

Apparently all the good investment properties have been bought up by the Germans and Dutch and the Irish are just too late in getting there. But its for your self to make up your own mind.

Nuttzz

I'd echo what was said above, and add that prsonally I think that 4% is a low ROI. There is most likely a double taxation agreement with poland now that they are in the EU, but i think there are better investments that that out there tbh

RainyDay

I think you'd be crazy to invest unless you have top quality, independent (i.e. not the agent selling you the property on commission) sources of information around;

- tax issues (income tax, capital gains tax, local authority taxes)
- rental property market (market strength, tenant rights)
- economic & political outlook
- legal status (tenants rights, inheritance rights, quality of title to property)

Stop & think for a minute why the owner/developer of property in Poland has to find a man as far away as Cork to sell his properties. Do you reckon there aren't enough Poles/Germans/Dutch/Russians with the money & knowledge to spot a bargain? Or could it be that no-one who actually knows this market will touch the properties with a barge pole. Just because a property is cheap does not mean it is a good investment.

kmb

Yes ithink ye are right.I think i will shy away from this because as you say return is small and being so far away control would be minimum.Thanks for your input one and all,cheers


kind regards, kieran

propertyguy1

Szczecin is a good place to invest .City centre location a must . You should pay about 4000 zloty per square meter for new apartments . Direct flights with central wings from Dublin . 6% return net net is achievable .

Regards and happy hunting

Sponge Bob

no jobs in szcezcin so who is supposed to pay the rent ???

Those flights are there to get the locals to where the jobs are and not to fly in uninformed Irish speculators .