[ad_1]
Although housing prices are rising, investing in rental housing continues to pay off. The average rental profitability in the largest cities is 5.35%. per year.
This is the result of Home Broker analysis and portal Domiporta.pl. – Rents last year have also increased – says Marcin Krasoń, an analyst at Home Broker. – From quarter to quarter, Poles are buying more and more rental apartments. – They are looking for an alternative to investing money that does not multiply quickly on bank deposits. Many times more than on deposits, you can earn on renting an apartment in each of the people surveyed by Domiporta.pl and Home Broker Cities. Optimized by the possibility of high profits, investors take the risks associated with this business – he notes.
adds that the market data are absolute. – Many deposits do not even cover inflation. The average interest rate on a deposit with a maturity of six to 12 months is only 1.7 percent, which after deduction of capital gains tax leaves less than 1.4 percent . profit during the year – says Marcin Krasoń. – It is not surprising to look for other solutions to protect the money against the inflation that consumes them and allow them to grow a little bit.
The expected average return on investment in an apartment is 5.35% and net – after taxes, rents and assumptions that for 1.5 months a year, the apartment is empty while waiting for tenants and does not generate only costs. – Among the cities analyzed, Gdansk is certainly the highest profitability expected, where you can earn more than 6.8%. net during the year, which means that the purchase of an apartment returns after less than 15 years – says the Home Broker expert. – In Katowice and Warsaw, profitability is above 5.6%, which is much less. However, we must not forget that the Gdańsk market is unique. Rental rates for premises near the sea are above average, and in this area there are many apartments for rent, as this area is largely oriented towards visitors.
– Not bad, because more than 5%. net per year you can win an apartment for rent in Łódź, Wrocław, Zielona Góra, Lublin and Bydgoszcz – points out Bartłomiej Baranowski, an expert at Domiporta.pl. – The least we win is Poznań, Szczecin and Białystok – about 4.7%. on an annual basis. It should be noted, however, that this "less" is still more than three times more than on average bank notes – notes.
See: Profitability of apartments in different cities in June 2018
– However, an apartment for rent is not the same as the purchase of apartments. Treasury bonds or the opening of a bank deposit. When we place money on the deposit, we know when and how much we will recover and if we fail, we are protected by the bank guarantee fund. If you buy an apartment for rent, there is no guarantee: first, we do not know how much you will earn – Profitability depends not only on the price of purchase and rent, but also how much you will need to invest in the renovation and / or equipment of the apartment. Domiporty.pl – Second, it is not known when you find a tenant, and every month waiting for a tenant is a zero income, and a third party, it should also be remembered that there are people dishonest on the market and although this risk can be minimized, it happens that the tenant does not intend to pay the rent after the signing of the contract, and the Polish law protects the tenant more than the owner. The problem may also be unexpected repairs or even the devastation of the premises. All this must be taken into account when analyzing the profitability of an investment in a rental apartment and the associated risk.
The analysis shows that during the last 12 months, the average transaction price per square meter. housing in the largest cities increased by 8.5%. – We recorded double-digit price increases in Białystok, Bydgoszcz, Gdańsk, Katowice and Szczecin, and in Warsaw, it is more expensive by 9.4%. For those who are interested in buying an apartment for rent, this is obviously bad news because they mean greater expense – says Bartłomiej Baranowski. – It must be remembered, however, that the scale has two sides and that the rental rates are on the other side. Although, in some cities, the rent of one meter has slightly decreased in some cities, one can observe noticeable increases from the point of view of the year. Rental rates are characterized by seasonal variability, for example they fall before the holidays and increase at the beginning of the school year.
During the year, rental rates increased the most in Tychy and Zielona Góra (by more than 15%). In Gdańsk, the change was over 13% and in Warsaw almost 8%. The situation is different in Wrocław, where the median is 40.85 zlotys per square meter, while a year ago it was 39.90 zlotys, an increase of only 2 percent. – The growth in rental rates is certainly influenced by the dynamic development of many cities, which attracts residents of small towns or even the entire province. In the case of the Tri-City, short-term rates have a significant impact on future vacations – note Baranowski
Rental profitability is calculated
The expected profitability of the Rental investment is calculated on the basis of the prices of the apartments (from the transactions made by the Home Broker and Open Finance customers) and the rental offers posted on the portal Domiporta.pl.
Rental rates for calculations were reduced by 5%. The analysis covers 15 cities: Białystok, Bydgoszcz, Gdańsk, Katowice, Kielce, Krakow, Lublin, Łódź, Poznań, Rzeszów, Szczecin, Tychy, Warsaw, Wrocław and Zielona Góra
. the importance of the offers significantly out of the average. Net profitability includes a rental period of 10.5 months and administrative rent paid by the owner (PLN 4-7 per m² of monthly housing), as well as a flat tax on rental income of 8.5%
[ad_2]
Source link
