Each investment is associated with a greater or lesser financial risk. The “Finances of Poles” survey, conducted in 2024, shows that most of our compatriots do not want to take this risk. 37% of respondents use savings accounts, and 31% use deposits where they keep their free funds. On the other hand, 8% of respondents answered that they invest in real estate. But is it worth it? How can you make money from them?
Investing in real estate – what is it about?
If you have free funds, instead of keeping them in a low-interest bank account, you can buy an apartment, a plot of land or a house. Investing in real estate involves acquiring, managing, renting and possibly reselling it. You can have a different earning plan – it all depends on the current situation on the housing market, your knowledge and the funds you have at your disposal. In recent years, there have been such large price increases that many investors have achieved a high return without doing anything – they bought an apartment from the secondary or primary market, and then sold it at a profit after some time.
How to make money on real estate?
The real estate market in gives you various opportunities to earn. You can buy:
The so-called ready-made investment, i.e. an apartment prepared for rent or already rented, where you can earn money immediately after the transfer of ownership. The advantage of such a solution is the ease of estimating the return on investment, thanks to the knowledge of the purchase price and the rental income.
The property you prepare for rent – it does not have to be an apartment. Houses for employee accommodation or villas and guesthouses in typical tourist locations are also a popular form of investment.
Commercial property that is already rented. You will earn money on it immediately after the transfer of ownership. In addition, such a property very often already has a permanent tenant for many years ahead, which will guarantee continuity and the amount of rental income.
Flipping apartment – this involves buying a property that requires general renovation, carrying out work, and then selling it at a profit.
How to invest in real estate? Do you need high capital for this? In the following part of the article, we will focus on renting.
Investing in real estate for rent – how to do it and is it worth it?
White Book” shows that about one million of our compatriots earn money on renting real estate. Recent years have been very fruitful for people who decided to make such an investment for the following reasons:
Regular increase in real estate prices – according to the Central Statistical Office, from 2015 to 2023, housing prices increased by nearly 80%.
Great interest in renting – especially during the period of the influx of refugees to Polish, but also due to rising housing prices and demographic changes and the concentration of population around large cities.
Poles returned to frequent travel after the pandemic, thanks to which there was a growing interest in apartments available as part of short-term rental.
By investing in apartments for rent, you earn not only on rent from tenants, but also on the increase in the value of the premises. During a period of high demand, you can decide to sell the property and make a big profit on the difference between the sale and purchase price alone.