Job Discussion Forums

[Grrrmachine]

for those who are commited to staying in Poland for longer than a couple of years, whats the current options for investing in property? Im trying to find out about mortgage options, what the benefits are of a Swiss Franc mortgage, and what the outcomes are in the future (especially as and when Poland gets the Euro.)

[abowwowbowers]

There was a big real estate boom in 1999/2000 in anticipation of joining the EU (at least in Krakow).

Krakow is a beautiful city that attracts tons of tourists but not too much foreign direct investment. Warsaw is attracting a lot of foreign investment however. Warsaw is a better investment while Krakow is a nicer place to live. Zakopane might be a good investment as more and more tourists discover it. Beach front property in Gdansk might also appreciate handsomely.

The demographic trends are not great on the whole (except for Warsaw). The population is shrinking due to low birth rates and emigration. You might not make great returns as an investment but if you're committed to living there long term then buying a house sure beats paying rent.

Keep an eye on inflation which has stayed manageable in recent years around a decent 4-5 percent. For those with mortgages inflation is actually a good thing because it makes the money you owe cheaper to repay. For those with money in the bank it is a bad thing as it is worth less.

Newly elected President Kaczynski wants to adopt the Euro in 2009 at the earliest. If Poland does adopt the Euro prices will probably rise as a result. I don't fully understand the economic impacts of Euro adoption. I wouldn't want my currency beholden to the economies of France, Germany, and Italy.

Where do you live in Poland?

[biffinbridge]

My mate who's a director at W.B.K. says it's best to take a zloty mortgage if you're paid in zl.A Swiss Franc mortgage is basically a currency trade....ie a risk.

[mique]

Speaking of investments here something else for anyone interested in making their money grow for them. The Polish stockmarket has proved itself to be very stable over the last few years and its very easy to open an online dealing account (and the dmwbk.pl dealing page is in English too). You dont need a fortune to open it and deal in shares either - transactions of 300 - 500 zloty are normal.

500 zloty may or may not seem alot but the opportunity to turn that much into much more is constantly arising. A share I owned this year went from 17 zloty to 40 in a few weeks and has since gone to 153!!! One of many examples.

Im going to start another thread with more info on investing in shares...so look out for it.

[JZer]

mique, interesting. I am currently investing in the American stock market. How does one research the Polish stock market if they cannot read Polish?

I will be sticking to the American stock market and am looking to buy some property in the U.S., so I can use it as income for retiring in Central America. You only need $400 a month to get a permenant residency visa in Nicaragua. So the rental income from one American house is plenty.