Everyone wants new, which means there are bargains to be had.
Recently our attention was drawn to a 7-year-old detached house on 6 ars (600sqm) of land which was for sale at a lower price than the new development next door of semi-detached houses on 3 ars.
The purchase price, fit-out costs and financing costs of the adjacent new development, ignoring all the personal time involved, far surpassed the cost of buying what was a perfectly modern detached house with little to refurbish.
So what’s going on?
Firstly, it is an accepted truth of the market that most buyers prefer to buy new properties. It may be because of the historical lack of good quality properties available from the secondary market or people just prefer to have their own style and stamp on their home. Older buildings come with unknown problems and restrictions, particularly those in Tenements.
But there has already been a lot of development in Poland in the last twenty years and from our view, properties in the secondary market show some real value opportunities.
Bizarrely, houses, fully furnished with a planted garden are offered for less than similar properties that require extra time and money before moving in. We believe this will change, maybe not next year, but soon, as more and more high standard secondary properties come on the market and people simply don’t have the time required anymore to manage fit-outs etc.
So whether investing or buying a home, keep a keen eye out for properties in the secondary market, you may not have a lot of competition right now.
And remember, the moment you buy a new property, it automatically becomes a secondary market asset.