We have an excellent investment opportunity in Poland ' Hotspot' Wroclaw with prices from just 125,000 Euros.
Project Description
The total number of units within the development numbers 72. There are 12 blocks consisting of 6 units per block with a maximum of 3 floors. They are essentially maisonettes. Ideal for rentals (currently 5% yield) and first time buyers from the local market.
The project is made up of 1 bedrooms, average 60 sq m2. Completion for the project is end of 2008. Prices per square metre are 7800 Zlt (finished) inclusive of VAT. Average unit cost c. €125,000.
Car parking consists of either purchasing an underground space (cost 30,000ZLT) or an open space above ground (cost 10,000ZLT)
Payment terms: 15% on exchange of contract, 85% on completion.
Developer
The developer has been in business since 1995 and has huge experience in dealing with medium developments ranging from mid to high finish with the Wroclaw district.
Location of the Project
1 km from Orbital road, 10 mins from city centre, 5 mins from the airport and new football stadium. Located in Muchobor Wielki, a nice residential area in Wroclaw.
Why Wroclaw?
Wroclaw, the capital of Lower Silesia, is one of the oldest and most beautiful cities in Poland. Situated in the south west of Poland near the foothills of the Sudeten Mountains, it is an exceptional city of 12 islands and 112 bridges set
across the Odra River, which flows north-west to form a natural border with Germany. There are currently in excess of 130,000 students studying in one of the city’s many universities and academies. In fact Wroclaw produces the highest number of computer science graduates in Poland. This pool of trained labour attracts such companies as LG, Phillips, Siemens and Toshiba, all of whom have located in this area. Wroclaw (pronounced “Vrotz-waff”) is centrally located between Warsaw, Vienna, Berlin and Prague which has made it an ideal base for logistic based companies and has led to the development of the Wroclaw Integrated Logistics Centre’. The German border is 170km to the west, and the Czech border is 85km to the south west. The city’s rapidly expanding airport now has direct links to the main cities in Germany, Ireland, Italy and the UK. Wroclaw is ranked second only to Warsaw in the financial services sector in Poland with five of the nation’s banks locating their head quarters in the city. Volvo, Hewlett Packard and UPS have all located their European accounting head quarters in
Wroclaw confirming the cities strength within the financial service sector. The current population is 633,900 and the city benefits from an unemployment of 9.5% which is well below the national average of 14.9%. Special Economic Zones
Poland has a network of Special Economic Zones (SEZ) which are government designated areas in which companies can conduct business on preferential terms. The purpose of SEZ is to support regional development by making investment attractive to foreign companies. Poland’s main aims when creating the SEZ system are to:
• encourage creation of new jobs
• accelerate the economic growth of these regions by attracting investment
• promote the development and use of the most current modern technological solutions within the economy
• increase the competitiveness of products and services within Poland there are
14 SEZ. The administration of each zone issues permits to do business in the
given zone and helps in the investment process, for example by facilitating contacts with local authorities or central administration in such areas as purchase of land and others. Poland’s SEZ have benefited from the country’s entry into the
EU in 2004. Since their establishment, the SEZ have been attracting inward investment to towns within the zones. In 2006 more permits for business activities were issued, leading companies to anticipate higher investments and
more jobs. Wroclaw also has the benefit of not fully experiencing the past exponential growth experienced in places like Warsaw. Wroclaw is not experiencing the over flow of the huge demand for Polish property and is set for
faster growth over the next 2-5 years.
Tax & Purchasers additional costs
• VAT on new flats is 7%, there is no VAT on property more than five years
old (the next expected change to VAT will be the introduction of the full 22% VAT on newly-built flats on 1 January 2008)
• Private individuals must declare rent collected as income and pay income
tax annually on a progressive rate scale of 19%, 30%, 40%, or they may register for a flat tax of 19% (though this does not allow for deductions)
• 2% of the transaction value is payable to the Treasury Office on purchase of property (stamp duty)
• Property tax 1.5% of nominal property value - due to change to a percentage of the market value in the near future
• On sale of property, private individuals pay no tax if they have held the property for over five years or if they re-invest into another property within two years of sale. Otherwise a private seller can be liable for 10% of the selling price (not just the capital gain). Capital gains tax will be charged at a flat rate of 19% from 1 January 2007 .
Ownership Structure
Polish property law is mainly governed by the Polish Civil Code. The law distinguishes between rights which are attached to the land, irrespective of its ownership, and contractual rights, which affect only the parties to the contract. Ownership under Polish Law is equivalent to freehold under the English legal
system. The owner is subject to planning legislation and is obliged to refrain from activities which interfere with the rights of others, such as withdrawing support from neighbouring buildings or committing a nuisance. Ownership is freely transferable and mortgageable. EU citizens can freely buy and sell property in Poland, except for agricultural
land. Other foreigners are able to buy and sell property up to 0.4 hectares, with larger purchases requiring approval from the Interior Ministry.
Why Poland?
Poland is one of the most exciting economies in which to invest in Europe. It has a population of 40 million and a GDP of Euro 203 billions. It became a member of Organization for Economic Cooperation and Development (OECD) in 1996, it joined NATO in 1999 and, importantly, it became a full member of the European Union (EU) in 2004. The significance of Poland joining the EU is huge in terms of appraising its economy for investment: Firstly, it gains preferential access to the EU member states – a huge export market. Furthermore, Poland also receives funds from the EU budget – estimated at Euro 14.6 billion in 2004-6 – which are designed to allow new, less rich members states catch up with their richer counterparts. Its admission into the OECD is also an excellent indicator: only 30 countries are members of the OECD, which is essentially a rich-country club whose members share principles of good corporate governance and economic openness for the purpose of economic growth. In its prestigious membership of such organisations, Poland is much like more developed economies such as the UK. The big difference is, however, that Poland was a communist country until 1989, and thus has undergone massive political and economic changes to achieve its current position – private sector contribution to Poland’s GDP was 18% in 1989; it is more than 70% now. But, it is still very early days in Poland’s transition from a closed, state-run economy to a rich, liberal economy such as Britain, even though its investment climate, in terms of political, is now
undoubted. This is precisely why we believe that Poland offers superb investment opportunities. The Polish economy grew at 3.2% (2005), faster than the Eurozone average (1.3%) in the same period, and has enjoyed consistently low Inflation. Foreign direct investment (FDI) is a good indicator of the expected growth, and stability, of an economy as it is proof of institutional-investor and corporate confidence. FDI has been pouring into Poland since the fall of
communism, according to the United Nations Conference on Trade and Development (UNCTAD), which stated that Poland was second only to Russia in receiving FDI of Euro 4.36 billions in 2004.
Poland is also a young country with 50% of its population under 34. It has low trade union membership, which implies a flexible economy, and a high student population (the sixth highest in the EU) which shows an educated workforce. The poles are also a hardworking nation. Thus, Poland has a huge stock of human capital which is an excellent indicator for economic growth. In summary, Poland offers a unique investment opportunity: a big country, with at large educated population who have very recently been released from the shackles of communism as has the economy as a whole.Poland’s ascendance to international organisations such as the EU, OECD and NATO are testament to the stability, but more importantly, to the direction in which Poland is headed. In short, We believe Poland to be an excellent target for investment.
Property in Wroclaw
Wroclaw [1](Polish: Wroclaw , pronounced Vrots-wav; also known as Breslau, its German name, and English name until 1945) is the largest city in the Dolno skie Voivodeship in Poland
Wroclaw or Breslau is large undiscovered gem, boasting fascinating architecture, many rivers and bridges, and a lively and metropolitan cultural scene. It is a city with a troubled past, having seen much violence and devastation, and was almost completely destroyed during the second world war. However, it has been brilliantly restored and can now be counted amongst the highlights of Poland, and the entire central European region. As Poland rushes headlong into further integration with the rest of Europe, now is the time to visit before the tourist hordes (and high prices) arrive. Read "Davies, Norman and Moorhouse, Roger. Microcosm: Portrait of a Central European City" to understand the complicated history of the town.
Wroclaw is served by an international airport. LOT fly here from Warsaw, Frankfurt and Munich. SAS fly here from Copenhagen and Wizzair from Dortmund, Centralwings from Dublin and Rome. From March 2005, Ryanair fly here from London Stansted, Glasgow Prestwick and East Midlands with fares from £15 one-way all-inclusive. See Departures and arrivals on-line.
From the airport, bus 406 operates from the terminal building to central Wrocław (schedule).
By train
Wroclaw is a major hub in the Polish rail network, with several trains a day to all large Polish cities (route planner). There are about 10 daily departures to Warsaw (travel time varies from 5h by a InterCity train, up to almost 7h with a pospieszny train) as well as quite a lot of trains to Poznan (from there you can go to Warsaw or Berlin). Several trains a day travel to Krakow. Wroclaw has also a direct railway connection with Prague, Hamburg and Berlin.
By bus
Wroclaw is a stop on the Eurolines international coach network. All international and national buses call at the PKS Centrum station which is located directly behind the main train station.
Get around
Rynek - the Wroclaw market square
The centre of Wroclaw is navigable on foot, but the feature has an excellent public-transport system for access to the suburbs and outlying attractions. The city has 60 bus lines and 25 tram lines. During the past year large areas of the surrounding area of Wroclaw have been closed for extensive road works. As such there are many diversions, journey times in and out of the city have increased especially at peak times and a few tram lines have been diverted or removed from service temporarily.
By bus or train Tickets
To use the system, you must buy a ticket before you board from a ticket machine or any shop with a sign saying "Ruch" or "Bilety".
Ticket prices:
One ride ticket: Normal , students (with ISIC identification) pay half. Express or night bus - . You must validate your ticket on board, or face ; fine if caught by an inspector. Tickets are not time-based nor route-based, i.e. you pay each time you enter a different vehicle.
One day ticket (jednodniowy), valid for all lines: 9/4.50
Period tickets:
5-day in city borders: 23,00/11,50 (only normal lines), 27,00/13,50 (also express)
10-day in city borders: 40,00/20,00 (normal), 48,00/24,00 (also express)
If you travel with large bags (such as backpacks) you must also buy a 1.00zł ticket for the bag. Owner of a period-ticket can drive one child for free (up to 13 years old) on Sat. Sun. and holidays.
There's a possibility to obtain "name" 30-day ticket (needed picture) which is little cheaper. All prices are listed here (PL): [2]
Source Wikitravel