Investment Property - Canal View

Original Investment Summary - 08/11/2007 Investment Property Canal View

Prices starting from £39,745.00

Our independent valuation has valued these units at 19% below market value
Very low price per sqm for the Warsaw market of PLN5,211/£922
Undiscovered district of Warsaw, where prices are set to grow strongly
Property Secrets has first choice of units and all units are South and South West facing
Property Secrets has payment terms of 20/80 – a huge improvement on a seven-stage payment for the local market

Canal View offers our investors one of the few remaining investments in the right district, with the right developer, within a pocket of Warsaw that is undiscovered, with low prices and masses of capital growth potential.

Canal View is located in the district of Białołęka to the north of Warsaw. It is a very undeveloped district, sparsely populated and characterised by an abundance of green space. Until recently it remained under the radar of local buyers in the city. We believe this development is very undervalued and, as transport links to the city centre improve, it will attract greater interest from local buyers who may find themselves priced out of the city centre. This is a rare opportunity to invest in an undiscovered district, where prices are set to grow strongly as they catch up with the market.

Investment opportunities are always present in Warsaw, like in London, for example, but choosing the right one will become more difficult in the future. The area around Canal View in Białołęka has an affluent feel to it. It will attract young professionals and families that want to move to a quieter area of Warsaw with lots of green space yet close to the city centre.

The population of Białołęka district is currently increasing as a result of the large number of immigrants moving to the area. This spacious green district offers an alternative for people wishing to move to a quieter district but who still want to be in the vicinity of the city.

The price per square metre of PLN5,211/£922 is very low for Warsaw – and indeed for a capital city – and the development is considerably undervalued.

Our independent valuation values our units at 19% below market value. The price per square metre of PLN5,211/£922 is one of the lowest prices to be found in Warsaw. We have the first choice of units in the second phase of the development where we have secured the most desirable south-facing units to maximise rental and resale value. Property Secrets have also secured excellent payment terms of 20/80. The payment terms for the local market are seven stage payments of 5%, 15%, 15%, 20%, 20%, 15% and 10%, immediately giving us a significant comparative advantage in this development.

Gross rental yields for this development are 6.4% and net rental yields at 4.0%, offering a stable rental income on this development.

Dom Developments is one of the largest and most reputable developers in Poland and is also the developer of our previous deal in Marina Mokotów. Canal View is a very low priced and highly undervalued development in one of the few undeveloped districts of Warsaw. For investors this means it has the potential for high capital growth. A long-term build time of 17 months only assists the 19% below market valuation. Excellent payment terms and an established developer with an excellent track record also make this investment extremely attractive for investors.

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