How much can you earn on an apartment for rent?


How much can you earn on an apartment for rent?

Gdańsk and Warsaw offer not only high profits from investing in an apartment for rent, but also high liquidity of the market. On the minus side is the entry barrier, which is high for Polish conditions - not everyone can afford to b

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How much can you earn on an apartment for rent?

Gdańsk and Warsaw offer not only high profits from investing in an apartment for rent, but also high liquidity of the market. On the minus side is the entry barrier, which is high for Polish conditions - not everyone can afford to buy an attractive apartment in these cities.

The average return on investment in an apartment for rent in the largest cities is 5.35 percent net - according to calculations by Home Broker and Domiporta.pl. At this moment, the best prospects for buying an apartment are in Gdańsk, Warsaw and Tychy. Even the least attractive in this respect Kielce, Poznan and Krakow offer on average much higher interest than the best deposits or treasury bonds.

A report by the National Bank of Poland shows that three- and twelve-month deposits currently have the lowest interest rates in history - more than 2% net is a rarity. The average deposit available on the market today is not even enough to cover inflation, which de facto means that the money deposited in the bank loses its value. In this light, it is not surprising that investors are interested in buying an apartment and renting it out. More and more real estate buyers are investors, i.e. people who buy property in order to make money on it - e.g. by renting it out. The data of the National Bank of Poland say straightforwardly: never before have Poles bought so many apartments for cash; in 2016, in seven major cities, PLN 14.2 billion was spent on buying new apartments for cash.

The profitability of investing in an apartment depends on several factors. Equally important as the rent obtained from tenants is the purchase price. It is from the calculation of these two values that the profit can be calculated. Provided, of course, that the apartment can be quickly rented out. An empty apartment does not bring any income, its profitability is 0 percent. One should also remember about the costs of preparation for rent and possible renovation, additional equipment and other investments.

Where to buy an apartment for rent?

Home Broker and Domiporta.pl have analysed rental yields in 15 large cities to see where it is most profitable to buy an apartment for rent. It turns out that the best prospects for such an investment lie in Gdańsk, Tychy and Warsaw. In each of these locations, the expected net profitability exceeds 6 percent. Between 5 and 5.5 percent. per year can be earned in Katowice, Lublin, Łódź, Wrocław and Białystok. The least - 4.42 percent per year should bring an apartment in Kielce. Still, it is much more than offered by deposits or treasury bonds.

Best Regards
Natalia Franczesko
Next Immo Group

Account Manager
e-mail: natalia@
next-group.com
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