Sanj,

Thanks for the information. From looking at rednet it appears that the 1bed properties have a better take up than anything else, and have a higher per sqm value. Even though there doesnt appear to be so many of these left I am still inclined to keep and rent for the time being, especially if the rental market is still strong. Does anyone actually have figures on this though?

On another matter, I am in the process of securing a mortgage on this, but have noticed (if my calculations are correct) that the amount needed (not including finish and kitchen) is the same indicated by PS as the grand total property price, even though the deposit (20%) has already been paid. i.e. Amount needed circa £50K. This appears to be way above (20%) the maximum LTV noted in the price spreadsheet.

Has anyone noticed this, or have i done my maths wrong?

Thanks

Hi Slaver

I think the rental market in Wroclaw (and BG) is healthy at the moment given the increase in prices over the last couple of years.

PS have already reported an excellent rental market in the city.

As for your numbers, if you are comparing the £ amount, are you taking into account that the exchange rate was about 5.6 PLN to a £ when the deal was announced but has now dropped to 4.3?.

80% of the purchase price is still to be paid on completion.

How did you find the mortgage process?

I'd be interested to hear the views of others invested in this development.

I also think that PS should avoid setting point estimates for capital growth predictions and give a range (low, medium, high) so investors can be more prudent when budgeting cashflow and to take account changes to the market.

For example, on this development, the investment report in Sept 06 suggested a better than average rate of growth (18% instead of 13%) over the medium term.

Current reports indicate a rate more like 5 - 10%.

Regards

Sanj

Sanj,

you dont sound too optimistic about the capital growth. looking at the rednet site, it would appear that 1beds (2 rooms) have indeed reduced in price since i last looked - down from 7500psqm to 6600psqm (quite a jump - talk about over speculation by the developer). On the plus side there only appears to be two flats available in the 50sqm range with 1 bed.

As you say lets hope that the finished development will be beacon for further development in the area and that the locals will see the worth once it is completed.

So my estimate would be that this is a 11% rise as you say. Interesting as PS stated last week that the average price in this development should i choose to sell would be approx 7000psqm which indicates an approx 18% rise. Would be good to get some accuracy here although am inclined to take the pessimistic angle. You win some you lose some, lets just hope we dont all try and sell at the same time, otherwise we'd barely cover the costs!

Mortgage wise, I am still deciding, but am probably gonna go with PKO as they are just around the corner from me, are quick at processing, allow you to pay off after two years at only 1.5% and have a low 0.5% setup fee.

Is anyone going to go over there in the next few months or are you letting PS take the reigns.

Simon

Hi Simon

I am optmistic that there will be double digit capital growth when the second phase of growth comes - but I don't think it will be as high as 18%.

In the mean time, 5-10% sounds about right.

I hadn't spotted these resale figures. They seem to quote 6200 - 6600PLN on the rednet site which goes against:

a) the recent guide last week of 7000 given by iPA

b) the last performance update given by PS (which was in the 7000's - can't find it now)

c) the latest rednet report (March) which quotes an average figure of 7429 for the city.

I know the market has slowed but am still surprised at these figures. I'll do some digging to try and verify these numbers.

I hope to get to the development in the next few months - latest pictures for April are on the developers website - looking good.

Regards

Sanj

Hi

I have also noticed that the price per sqm has dropped recently on this development. But I was wondering whether it was partly due to the developer discounting less popular apartments in a flatish market when 70% of the units have been taken and the project is soon to be completed. From what I've seen on the website, they appear to have shifted the more popular one-bed flats during a period when prices were being advertised at a much higher level. So is it a case of the average being brought down by these circumstances? Just my hopeful view. Any thoughts?

Regards David B

Hi David

I think you are right here.

Whats encouraging is that they do appear to have shifted many more apartments over the last couple of months.

The ones that are left are the larger apartments.

As you say, the more popular ones seem to be the 1 bedders.

I hope another plus for us here is that most of the apartments were sold to locals. Judging by this thread there are perhaps a dozen of us invested via PS (I have noticed the apartments being sold through other websites).

Not long till the development is complete and we move to the next steps...

Regards

Sanj

These are hopeful and optimisitc views. lets hope you are right

Just before i make a decision on which mortgage to go for, can i ask who you guys have gone with?

simon

Hi Simon

Yes, I have an approval for a mortgage from Deutschebank, but they still haven't produced the paperwork. I am constantly being told that it's ready. Anxious wait, though.

Cheers
David B

Hi David, Im sure it will come through.

do you have any contact points within Deutschebank. I tried a while ago, and didnt get anywhere and then work got too busy.

What do you see as the real benefit of there products?

Thanks in advance

Hi

Just noticed that the Polish version of the developer's website for Balcony Gardens has posted some updated pictures as we near completion on this project. It's all looking very good. I was wondering, though, if anyone has visited the actual location and might know what the area of hard ground immediately opposite the extended arm of flats is. It appears for the first time in these images and was previously represented as a greened-up visual. It doesn't appear to belong to the development's plot, as it is fenced off, and is obviously very near it. I'm a little worried someone might stick something there that would not be in our best interests.

Regards

David B