Introduction -
Poland is one the earliest and fastest growing members of the EU. The
Polish government has concentrated in embracing EU laws and economic incentives
to trade goods and labour cross border. By ensuring it meets its commitment to
future single currency integration it has attracted foreign investors seeking
early market entry and skilled low cost labour. Its citizens are
becoming richer as GDP rises, unemployment falls and wages rise from workers
coming to the UK or running new businesses. Between 2004 and 2006
disposable income rose by 29%, driven partly by skilled workers working abroad
in places like the UK. This has resulted in a rise in home
ownership which was 48% in 1998 and rose to over 60% in 2006. These
wealthier citizens are demanding higher specification urban apartments. In
addition demand for rental property is being driven by foreign investment in
Poland... Large multinationals are beginning to set up offices in
Poland in cities like Warsaw where highly educated and skilled low cost labour
pools exist. In particular, the backlash against Asian based call centres
due to language and cultural confusions, has promoted calls by some companies to
base themselves in Poland. This influx of foreign investment and workers
has stimulated demand for polish rental property.
The Polish Holiday Home Market -
the polish buy to let market one of the most popular holiday hotspots
for UK and other EU investors. This demand is reflected in the
total value of property transactions which rose by an amazing 51%
between 2004 and 2005. At the same time property prices are
rising by around 10 per year while only 20% of property is mortgaged
(indicating a lower potential risk of price crash due to mortgage
interest rate rises). The main types of holiday homes purchased by
foreign buy to let investors tend to be urban based, renovated, city
centre apartments in areas like Krakow, Poznan and Warsaw. The
traditional picturesque rural towns of Silesia are also becoming more
popular with land space in abundance and lovely log cabin and older
farmhouse properties available. There are plenty of brand new property
developments for holiday investors to choose their second holiday home.
The low cost European carries and three hour flight time makes it simple
for holiday home owners to visit their holiday home to check up on any
tenants or undertake maintenance and repairs.
Holiday Home Insurance for Polish Property - whether you plan to
leave the property unoccupied or use if a long term holiday let, you
will need to protect you investment with adequate buildings and contents
insurance.
AssetSure are
able to offer second home and holiday home insurance for your Polish holiday home.
We can provide cover for property let part of the time.. perhaps you are
only visiting the property a few times a year as a holiday home and
other times during the year it is let out to cover the costs of the
mortgage.
How to Buy a Holiday Home in Poland
- if you do not live in Poland and are looking to buy a holiday home in
Poland whether it for holiday letting or simply to act as a second home
you will have to familiarise yourself with the legal property purchase
laws and procedures. The Polish Civil Code sets out
the rules you must follow. All Citizens of the European Union can
buy and sell holiday home property but not land officially classed as
agricultural land. Before you begin making offers you will need written
permission from the Polish Home Office. The alternative is to set up a
Polish based company which makes the purchase but the company is
controlled by you. You must ensure the land as well as the
property are properly identified as Polish law separates the two and
allocates rights to each area. You will need to employ a Polish
solicitor who will be responsible for the legal paperwork and who must
also use a translator to ensure any documents are properly translated.
These will include the initial contract which highlights the offer,
acceptance and buyers and sellers details. The notary will draft and
oversee two purchase contracts; the first is the 'Preliminary Contract'
and the second is the 'Final Contract'. You must also employ
an independent notary to ensure the buyer and seller sign the final
contract on a pre-agreed date and that title of ownership has legally
been transferred and a not placed in the local land registry. Once the
final contact has been signed the final monies can be exchanged. The
cost of purchasing your second home or holiday home is likely to be 8%;
this is made up of VAT on new flats under 5 years old (although an
anticipated 22% charge is expected by January of 2008). Other
purchasing costs include 2% stamp duty, 1.5% property tax (based on
market value), notary fees of 3%. Upon the sale of the investment
property a 19% capital gains tax is also levied and during the life of
any holiday letting another flat rate of 19% is also during on rental
income. Other minor costs to consider will be court registration,
land registry, surveyors fees (if old property) and any estate agent
commission.
So if you are seeking an holiday home insurance quote for a property in cities
like Krakow, Poznan and Warsaw, why not see if we can help. In addition,
Assetsure provide overseas property insurance and holiday home insurance for
other countries including Australia, Austria, Belgium, Bulgaria, Brazil,
Canada, Cape Verde, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Egypt, Hungary, Iceland, Ireland,
Italy, Latvia, Lithuania, Liechtenstein, Luxembourg, Malta, Monaco,
Montenegro, Morocco, Netherlands, New Zealand, Norway, Poland, Portugal,
Romania, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland,
Thailand, Turkey, United Arab Emirates, United Kingdom (UK) and Venezuela.
Guide to Polish Holiday Home Insurance