The functioning of investment portfolios in the real estate industry

The real estate market has changed a lot in recent years. Do you think that all changes have influenced interest in the investment portfolio?

Definitely yes. People gave up the hope that the magical moment would come where everything would happen by half. However, they saw how their money is currently losing their value.

Society is no longer waiting for better times. Inflation, interest rates and other factors have left their mark on real estate prices. Currently, we are in a place where a representative studio in Warsaw will be bought at a price that can oscillate around PLN 1 million, and a decent three -room apartment for about 1.5 to 2 million PLN (depending on the district). Now, please reach back and ask yourself how much analogous properties cost 5 and 10 years ago. My mission is to make people aware of the need to invest. Keeping money on a deposit is an option, but none (even the best) is identified with such rates that maybe even the weakest of my real estate wallets. In addition to entrepreneurs and private investors with whom I work every day, I try to make young influencers, rappers, players and actors aware of my knowledge and experience. I support the investment portfolios of many famous people, including Magdalena Boczarska, Żabson, Young Leosi and Cuba Model.

In my opinion, investing in an apartment is becoming less and less profitable. Counting the profitability from the lease, we must remember about downtime where we are looking for tenants, all kinds of damage to the need for renovation, brokerage costs, administrative rent, etc … – suddenly we notice that our profit becomes similar to the one we get on bank deposits (without having to do virtually no work). The mentality of people is changing slowly and all the time can be heard outdated advice, such as: “Buy a flat and rent” which in the face of variable interest rates can sound often like “hang a stone around your neck”. The purchase of a plot is a much better choice, which we can successfully do for the equivalent of the amount of our own contribution to the loan.

For people with larger resources, a good direction is the purchase of commercial premises for rent for e.g. Żabka, a banking facility, which gives a high profitability or purchase of a large area of ​​land for single or multi -family housing.

How can an investor earn on the real estate market? And what is it worth (most often) to invest in the 21st century?

The way has not changed for centuries. The most obvious is the purchase at the price of “X” and sales at the price of “x+y”. Also, what is worth investing has not changed, i.e. simply real estate. In my opinion, the best choice is land properties, because they decrease at attractive and valuable every year.

What is the largest project by you and what was it about?

My largest project is the settlement of Dylewskie Hill. Nearly 10 years ago I discovered a large, 200 -hectare area of ​​agricultural land lying in the Landscape Park of the Dylewskie Hills. He simultaneously adjacent to the planned S7 route (connects the Tri -City with Warsaw) and it was during the local vision that I came up with the idea of ​​creating the “slow life” estate. Instead of selling a role, I wanted to transform the ground for construction purposes. When I started to implement the idea, it turned out that the commune was very favorable and supported the initiative from the beginning (including water and sewage to the area).

You run investment portfolios based on real estate for almost 20 years. Has the structure of investing in this industry changed a lot?

My activity was created out of passion and interest in architecture. As a child, I was also very interested in construction. Studies at the Poznań University of Economics were somewhat dictated by the fact that it had one of the most interesting and top buildings in my city.

As for the structure of investing in real estate, it is constantly changing. Once, most people bought apartments, and now they change. This is due to the fact that attractive rates of return began to move to other real estate market sectors (Earth and commercial).

What do customers fear while investing?

It is difficult for me to say because I get to me customers who, because of the trust I am happy, do not have much concern. Looking more widely, however, it happens that customers are characterized by a lack of certainty, but whether we want it or not, this risk is a component of the definition of investing. Fortunately, the real estate market has very wide possibilities of minimizing the threat. It is not without reason that Poles indicate him in second place right after bank deposits. In my actions I noticed that I have two types of customers: those who trust me 100% and buy a given investment without watching and those who need to see locations before they invest. Finally, however, when they go to see the area with me, 95% decide on it.

How to wisely differentiate the investment portfolio on the real estate market?

If we do not have enough knowledge and we do not feel trends, it is best to focus on diversification depending on the wealth of the wallet. The best proportions are: 50% apartment or commercial premises and 50% Earth.

What is the minimum amount that the investor can put in the investment portfolio?

The advantage of land investments is that it is enough to have up to PLN 60,000 net, i.e. 75,000 gross to proceed to properly invest money.

What segments on the real estate market do investors have to choose from and do you also work on foreign markets?

The choice is broken down by housing, commercial real estate and land real estate. I do not work on a foreign market because there are too many actions burdened with high risk that needs to be taken. I believe that it is impossible to invest in another country without perfect knowledge of the market and/or without a trusted person who operates in a given country.

Is conscious differentiation of assets the key to effective investing?

The varied wallet may look effective, but this does not indicate its effectiveness. The most important thing is the market feeling and if we do not have it, it is worth hiring someone who has them. Everything also depends on the wealth of the investor’s portfolio.

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