The article was published for the first time in November 2024 and this period concerns the calculation
– It is better to invest in apartments from the secondary market. In a few dozen years, tenants will not distinguish which apartment was from the developer, and which from a large album – tells Sławek Muturi to “Newsweek”. It is the owner of a managing company nearly 10,000 apartments for rent. The scale of his activity is unique. He earns millions of rent. On the internet, however, there are many investors with a much smaller scale who light up the imagination of Poles, praising investing in apartments.
With the help of Andrzej Prajsnar, an expert of the RynekPierwotny.pl portal, we estimated what earnings can count people who place money in real estate in various regions of Poland.
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The following calculations are of course only respect. The case of each premises is different. We have adopted some criteria for the needs of our analysis.
First of all, we take into account the lease situation two -room apartment with an area of 45 sq m, i.e. the average size of the used M2 from six largest cities.
The exact computing assumptions are as follows:
used two -room apartment (45 sq m), which was purchased only for its own funds (for occasional rental rental), after including transaction costs, it has a price of 1 sq m. such as the average transaction rate calculated for the secondary market from a given city and regarding premises from a range from 40 sq m to 60 sq m (NBP data from Q2 2024);
The rent for the owner of the premises visible in the table does not include fees incurred by the tenant (e.g. the cost of media and advances to the housing community);
The initial rent reaches an average level for M2 of this size from a given city (according to Gethome.pl data from early November 2024);
Every year the rent is valorized by inflation;
The premises are rented for 11 months a year;
After purchase, the owner will bear the costs associated with partial renovation and equipment of the used apartment (PLN 40,000);
A flat -rate tax (rate: 8.50 percent) is paid on revenues from the lease.
The table below indicates that with these assumptions, the profitability of M2 rental from the analyzed cities ranges from 3.7 percent. (Kraków/Łódź) to 4.8 percent (Warsaw). The average result for six largest cities is 4.1 percent. annually in a five -year period.
Rental profitability respect in the six largest cities
| Rynekpierwotny.pl
It is worth noting that in October 2022 and April 2024, experts of the RynekPierwotny.pl portal prepared an analysis based on similar assumptions, which also concerned M2 rental with an area of 45 sq m. The average rental profitability determined as part of these previous analyzes (for six largest cities):
October 2022 – 4.8 percent
April 2024 – 4.4 percent
See also: The aspiring rentier tells us his plan for financial independence. Real estate is only 30 percent.
Bonds better than rent
After comparison with the November result (4.1 percent) we see Systematic decline in rental profitability. It results from the deterioration of the relationship between the prices of the area and rents. It is worth noting that in the analyzed period the average interest rate on new deposits for consumers has also dropped. I am talking about the following results (according to NBP data):
5.7 percent – October 2022,
4.2 percent – April 2024
4.1 percent – September 2024
In comparison with apartments and deposits, long -term tax bonds are much better.In the case of 4-year papers in the first annual interest period, the interest rate on the bonds is 6.30 percent. per year. The interest rate for subsequent interest periods is calculated on the basis of the increase in the prices of consumer goods and services, adopted for 12 months and announced by the president of the Central Statistical Office in the month preceding the first month of a given interest period, increased by a permanent margin of 1.50 percent.
10-year bonds have even higher interest rates.
See also: What tax on renting on Booking or Airbnb? This must be explained
Secrets of saving and investing
As we wrote in Business Insider Polska, Poles are more and more wealthy every year. The main driving force are growing salaries, which from the beginning of 2022 go up almost continuously at a two -digit rate. If we explore the CSO data, it turns out that 20 percent Poles have a five -digit gross salary on the contract, and every tenth employee earns over 14,000. PLN gross.
Systematically postponed money creates a powerful resource. The sum of the financial assets of Poles exceeded PLN 2.5 trillion. What to do with them? Most follow the line of the lowest resistance and choose safe, proven ways, but giving limited possibilities of multiplying savings. Often Big money just wasted.
We wrote about what can be done with them in this article: How to multiply your savings? Everything you need to know
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
