Buying Property in Poland
The Definitive Guide to
Buying Polish Property

Before the Purchase

This is a preview to the chapter Before the Purchase from the book Buying Property in Poland by Tim Hill.
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Introduction


Before beginning the search for a Polish property any buyer must first ensure they are allowed to purchase. Poland operates a strict permit system to regulate the amount of real estate that foreigners can buy, which not only helps to regulate price increases but ensures property values remain within the reach of the domestic market.

With this confirmed it is also worth looking at the possibility of financing your purchase through a Polish mortgage as low rates may mean the cash you currently have would be better off in another financial investment that would more than cover the interest on the property loan.

If you are confident that you can get a permit and a check on the financial products available has given you a concrete budget on which to move forward it is then time to start considering what you want to buy. But Poland has its own real estate culture and this chapter will cover, among other things how best to make enquiries, how to spot time wasting vendors, how to deal successfully with estate agents, how viewings work and how best to make an offer. Specific details on visiting Poland and buying off-plan are also discussed.

The Permit System


The Polish know only too well the even larger boom in property prices that would occur if it was left to the free market — with picturesque farms available for as little as 15,000 euros how many would you buy? As such there are a number of restrictions on what a non-Polish citizen can buy. These will be gradually phased out between 2009 (for an investment property) and 2016 (for agricultural land).

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What else is in the chapter 'Before the Purchase'?

Getting Round the Permit System

The permit system is strict and should be treated with caution. It is possible to ignore it altogether but you do so at your own peril as problems can occur ...

Polish Mortgages

A decade ago Polish banks showed little or no interest in lending to foreign buyers but times are changing and there are now a bewildering number of ever changing products ...

The Polish Mortgage Application Process

To be better prepared it is worth understanding the steps involved in applying for and securing credit. ...

Step 1: Creditworthiness

The various banks or lenders will first make an assessment of your overall credit worthiness and this is carried out using their own internal software systems. As such it is ...

Step 2: Loan to Value (LTV)

In coming to a decision lenders will see your contribution to the purchase as important. While it is possible to borrow up to 110% of the property value even Poles ...

Step 3: Completion of Documents

Steps 1 and 2 can be completed simply by providing the required figures to the broker. The lenders will then issue a preliminary agreement. This is close to the Agreement ...

Step 4: Negotiating the Interest Rate

It is possible in some instances to further negotiate the interest rate on an offer from the bank and this could potentially be considered if you are taking out a ...

Step 5: The Credit Decision

Credit decisions are not always a clear-cut yes or no and can come in four ways: affirmative, affirmative with conditions, negative and negative with conditions. ...

Step 6: The Loan Agreement

Once an agreement has been reached the loan agreement itself must be signed. This is a key document in law and contains details such as what the credit is being ...

Step 7: The Release of Credit

The release of credit (or drawdown) can usually occur within three to five days of the completed loan agreement and other required documents being received by the bank. The funds ...

Making Enquiries

Once you are confident that the permit system is not relevant to you or that you know how to handle it and finance is in place it is time to ...

Searching by Postcode

While in Britain and some other Western countries postcode is everything they are not seen the same way in Poland. A postcode can cover an entire town or a whole ...

Who is an Estate Agent?

When searching the internet or talking to various companies it is not always clear who is an estate agent and who is a consultant or service provider. The following explains ...

Dealing with Agents

In your initial enquiries with agents you may find details hard to extract. This is because in Poland the agent usually charges both the buyer and the seller a fee ...

Viewing Properties

The normal rules of politeness apply to viewings in Poland. Bear in mind that it is normal for the owner to be there and agents only hold keys in the ...

Making an Offer

If you feel what you are seeing is right for you there is no harm in making an offer during a viewing but if the property is being sold through ...

Fixtures and Fittings

Some sales to foreign buyers come unstuck because of their surprise with the way fixtures and fittings are handled. In Western countries carpets, flooring, bathroom ceramics and fitted kitchens are ...

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