Robert Chojnacki is our Polish property finder and we believe he's the best in the business.
Robert has researched the Polish property market for over ten years - three years as an equity analyst specialising in property stocks, and then for more than seven years as President of Poland's most comprehensive property investment research company.
We interviewed Robert and asked him to characterise this deal and outline its outstanding features.
So, Robert, it's always a sign of a great deal if you can sum up it's outstanding features in a few simple points...can you do this with Golden Gardens?
This is very easy, actually.
I think there are several points, but, as you say, with all the best deals, there are just a few really important ones why this is a great deal.
The number one factor, and by far the most important, is that this developer has priced all these units at the same psm price.
This is a big mistake, in my view and experience of the market.
Why? Because the value of units can vary by a great deal according to position, outlook, storey, orientation and so on.
And I mean a great deal.
How much can they vary? And how much in this case?
It's impossible to be absolutely precise - and the real test comes on the secondary market - but I can say confidently that the degree of variance is between 15 and 30 per cent.
This is a genuine variance and one that will be realised on the secondary market.
So, if you factor in the price discount Property Secrets has achieved and add on the minimum premium for position, anyone buying into Golden Gardens is looking at a minimum discount of well over 20 per cent.
Of course, the fact that all units carry the same psm price can only be exploited if you are sure you have the best units. And to get those, you need to be in first and have first choice. We have done this.
It's also worth saying that we are the only investor group involved with the developer in this second phase of the development. All our terms are 100 per cent exclusive to Property Secrets buyers.
Phase one of this development is already 60 per cent sold - all to Poles, and these are people who actually want to live in these flats. Bear in mind, too, that construction on phase one hasn't even started yet!
Price is always a huge plus. But you need to buy at a great price in the right market, don't you?
Of course, this is true. A great price in a static market means nothing.
This is the second really big factor - Poznan.
Yes, we've talked about the market in Poznan before. You described it as a train starting to pull out of the station....
Yes, well now it's left the station and rattling down the track!
There is no doubt that, while Poznan was a slower starter than several other cities, it has now entered a period of very, very strong growth.
And, of course, we predicted this would happen.
So far this year, Poznan is the top performing property market in Poland - we've seen growth in the first quarter of 27 per cent.
We're going to see much more of this over the next few years.
Anyone already invested in Poznan must have a big smile on their face because they can see what is coming.
This also brings me to another factor of this deal - the long lead time to completion of Golden Gardens of 20 months.
This is excellent for an investor.
Clearly, if you're buying off-plan as an investment, you want to do this in a market where prices are rising fast and you want to put down the minimum before completion.
If you can also have a long lead time, that is just a wonderful bonus.
So, you are going to experience fantastic price growth over 20 months for just an outlay of 20 per cent of the cost of a unit.
I also think the situation in Poznan is going to be somewhat different to elsewhere because of the especially tight planning restrictions here.
The planning authorities seem determined to control development and preserve the character of the city. This will not only have the effect of curtailing supply, but also of adding to Poznan's appeal.
Price and Poznan, then, in a nutshell. Any other unique selling points?
Two more.
To appreciate the first, you really need to study the layout of these units. It is this - these are probably some of the best designed layouts I have ever seen with a superb use of space.
And, the terraces for these units are actually not calculated in the price per square metre - so they are effectively free.
The other point is one that people who have not lived in Poland will not appreciate immediately.
But for this deal, believe me, the parking spaces are a big, big plus when you sell to a Pole. They are special with this development.
Normally, parking slots in new builds are just underground parking spaces - good enough.
But here we have actual lock-up garages. This is very, very attractive extra storage space.
In Poland, for example, you must change your car tyres in the winter - where do you keep the spares? Where do keep your bicycle? Where do you store 101 other items? Yes, having a lock up garage with its own entrance is very appealing to the Polish buyer.
These garages are priced at PLN30,000, which is, in my view, under-priced and should be about PLN45,000.
All in all, then, Golden Gardens has enough unique selling points to make it a fantastic investment opportunity in a Polish market that is topping the price growth league. Like we said, Poznan was always going to take off - well now it has.
Poznan Property Property Investment Poland Property
My Opinion
Did you find this article interesting and useful? |
Start the discussion
| Upgrade to PRO membership |
|
To post on the Property Secrets Community Forums, or subscribe to email updates from the Forum, youneed a Property Secrets PRO membership. |
Related Articles
- Hidden gem - Chesham is not just under-priced, it also holds a potential golden opportunity for investors
- Our Money Making Buy to Let Strategy for 2006
- Avoiding cashflow crisis how to manage as interest rates rise
- SIPPS and The Emperors New Clothes
- Facts & figures making East Europe exciting for investors
- Nokia invest €60 million in Cluj, Romania
Related Downloads
- Portfolio Property Secrets
- The Lewis Reports
- Poland's 3rd Tier Cities
- Warsaw Property Market Profile
- Poland's 2nd Tier Cities
- Wroclaw Investment Decision Maker
- Warsaw Investment Decision Maker
- Tricity Investment Decision Maker
- Krakow Investment Decision Maker
- Poland Property Market Profile
- Poznan Investment Decision Maker
- Where In The World To Invest...
Blogs
More from PS blogs ...
Email This Article
Print This Article



ES