Investment Horizon opinion: where to invest money?

Are you wondering where to invest your money? Gold, deposits, or maybe cryptocurrencies? According to Commplace's client, Horyzont Inwestycji, opinions may differ, but there is no better way to increase capital than investing in real estate. Their prices will gradually increase, and the costs of building materials or labor leave no room for speculation - real estate is a secure and future-proof investment.

Inflation at the level of over 8%. it encourages both individuals and enterprises to invest heavily. The fall in the value of money has been felt the most in over 20 years, Polish economists enumerate. Placing funds in bank accounts at low interest rates is not profitable. Where to invest money? The cryptocurrency market is very popular, but nevertheless it is a relatively new area of investing, with high risk. What do our experts say? Opinions are consistent in Horyzont Inwestycji: there is no safer investment than real estate.

The real estate market during the pandemic

The National Bank of Poland has published a report which shows that the demand for flats remains strong. The estimated value of residential real estate assets in Poland at the end of 2020 amounted to approx. PLN 4.9 trillion, compared to PLN 4.3 trillion in 2019. The value of commercial real estate amounted to approx. PLN 314 billion¹ . No wonder that the market is growing - the demand for real estate is growing every year. Customers see them as a good investment for a long time.

In addition, the migration crisis related to the situation beyond our eastern border also means that more and more people are coming to Poland. It is estimated that there are over 2 million more people on the real estate market today than at the beginning of 2022. If we add to all these factors the constantly growing popularity of studying at universities away from home and the frequent departures of young people from their hometowns, we will get a huge demand for housing. It is estimated that it may soon significantly exceed the supply on the real estate market.

Opinions are consistent in Horyzont Inwestycji - experts recommend real estate

Experts from Horyzont Inwestycji agree - it is best to invest your capital in real estate.  What are the ways to invest? It is worth buying an apartment, renovating it and making money on the sale. The profession of flipper is becoming more and more popular. Flip is a project aimed at quickly increasing the value of your property. Fliper usually works in cooperation with a given company, which helps him find a flat, and then supports its financing in the 50/50 model. At the current prices, it's hard to find a really good deal. However, using the right tactics definitely helps.

How do I search for a suitable property?

Where to invest money? How do I find a property? It should be viewed primarily from the investor's perspective - advise experts from INVESTMENT HORIZON Opinions that large assets are required to become an investor are not entirely true. First, pay attention to where the apartment is located and whether it will be easy to cash it. Location plays a key role in the sales process. Another important issue is its size. Small apartments are easier to cash as there is a lot of demand for them. These types of premises are sought after by single people, as well as small families - because their price is much lower than that of large premises.

However, if we have the opportunity to buy a large apartment, it may turn out to be - after appropriate adaptation - a good investment for rent. Today, many students are happy to share flats with other people. Thanks to this, the costs associated with renting space are spread over several people. That is why it is worth listening to experts and looking for properties that are in high demand in a given city. Yes, to maximize the possibility of their quick sale immediately after renovation.

Where to invest money? In attractive real estate

According to economists from Santander bank, prices of building materials will remain high. However, we should not expect such big increases as before.

When choosing a property for an investment, its value after renovation should be carefully assessed. It is also very important to know the costs of the renovation itself.

The prices of renovation, as well as the prices of the entire property, are influenced not only by the prices of building materials, but also by the costs of raw material extraction. And these are definitely growing due to the dwindling resources.

Paweł Kuczera - President of the Management Board, Co-owner of Horyzont Inwestycji

In Horyzont Inwestycji, the opinions are consistent. Renovation significantly increases the attractiveness of the property, and thus its price. Therefore, living in a good location, even if visually not in the best condition, can have a lot of potential. If that's the case, it's worth investing your time and money to maximize your profits.

Investment Horizon: opinions on the purchase of real estate for rent

Economists are observing an increased demand for real estate rental. In selected cities, increases are at the level of several percent. The highest prices apply to small premises, and those who rent apartments over 60 square meters can count on promotions. Is it worth investing in apartments for rent? Currently, there is indeed a greater demand for them. Nevertheless, the pandemic has definitely changed consumer habits. Many people wanted stabilization and buy their own property.

The home office made Poles aware of the importance of having their own M. Due to the pandemic, universities regularly introduce distance learning, and such a solution does not have a positive effect on the rental market. According to Money.pl, in the last two years, rents in Szczecin have increased by as much as 24.6 percent. In Poznań, Łódź and Bydgoszcz - by nearly 10 percent, and in Wrocław - by 9 percent.³ . Rising rent costs are also not encouraging people to invest in real estate for rent.

Michał Chimko - Co-owner, Horyzont Inwestycji

Therefore, if we plan to buy an apartment for rent, be sure to check the market situation in our city. Are students returning to full-time education after the pandemic? How many apartments have been rented in recent months? It is also worth checking the offer of apartments for sale. If previously rented apartments are available for sale, it is worth taking a look at them - if someone got rid of them quickly, because they had to, their price may be attractive.

The demand for housing continues

Buying real estate on a flip is an opportunity to earn a lot in a short time. Many people choose premises that are put up for bailiff auctions, while others are simply looking for opportunities. Buying a property at a low price is the first step to making a profit. After renovation, a given premises may gain in value by up to 50 percent.

In the second half of 2020, a significant increase in the demand and sale of apartments was observed. The high demand for flats was a consequence of, inter alia, a strong growth in household wages and the persistence of historically low nominal interest rates (both on deposits and loans).⁴

Marcin Kuryło - Co-owner-Mentor, Horyzont Inwestycji

Currently, interest rates are rising, which may indeed slow down the enthusiasm in the loan market a bit, but one thing is certain, which is confirmed by the Investment Horizon - the opinion that the demand for housing will not fall is a good omen.

Second-hand apartments are becoming especially popular. They are often much cheaper and do not require additional money from buyers to finish them. In addition, banks are more kind to borrowers who buy an apartment from the secondary market.

As Horyzont Inwestycji mentions - opinions on the best way to multiply your money vary. However, real estate represents your best chance of multiplying your wealth. Both for beginners and experienced investors. They are the safest capital investment and - in the case of real estate for rent - a reliable source of passive income.

¹ https://www.nbp.pl/publikacje/rynek_nieruchomosci/raport_2020.pdf

² https://mojafirma.infor.pl/nieruchomosci/wiadomosci/5346522,Ceny-materialow-budowlanych-w-2022-roku-bedzie-drozej.html

³ https://www.money.pl/gospodarka/nadeszly-dobre-czasy-dla-wynajmujacych-stawki-za-najem-mocno-w-gore-6710030239242880a.html

⁴ https://www.nbp.pl/publikacje/rynek_nieruchomosci/raport_2020.pdf