Poland is now one of the fastest growing economies
I would choose to purchase a property in Warsaw, Poland because of the incredible recent growth in value of Polish real estate. The Polish economy is currently the sixth largest in the European Union and the largest of any EU member nation in Eastern Europe, but it has often been overlooked as a candidate for foreign investment. Poland exemplifies an economic system defined by its resilience and stability, a fact demonstrated during the international economic crisis of the late 2000s. In fact, Poland was the only country not to have suffered a decline in annual GDP during the market crash. Poland’s economy has benefited greatly from this stability, and with an annual economic growth rate of 3.9%, Poland is now one of the fastest growing economies in both the EU and the world.
In response to the stability and growth of the Polish economy, foreign investors have associated Poland with investment security and a guaranteed long-term profit. Several credit-rating companies, such as Moody’s and Fitch, have forecasted steady economic growth for Poland, and an Ernst & Young report ranked Poland seventh in the world in “investment attractiveness.” Polish law and government favour foreign investment, particularly in real estate, and offer substantial tax reductions and exemptions to interested investors. This support from the government further incentivizes both private investors and businesses to consider buying property in Poland. In fact, the National Bank of Poland has observed a steadily increasing rate of Foreign Direct Investment (FDI) inflow into Poland's real estate market since the early 1990s. The National Bank projects that this stream of investment will only continue to grow as more prospective investors, both in Europe and on an international level, begin to recognize the value and sense of buying property in Poland.
However, my dream to buy a home in Poland is not simply a business-minded investment; I also find that the country is one of the most unique places to live in the world because of the Polish culture and people. Despite it being a developed and modern state, Poland has largely retained its cultural identity. Throughout its history, Poland has been considered to be the frontier between two worlds — the Roman Catholic world of the European countries to the west and south of Poland, and the Orthodox Christian, or post-Byzantine world to the east. Poland has thus served as a median between these two differing worlds, and has consequently been exposed to an enormous diversity in terms of cultural and ethnic traditions. Poland can therefore be considered to be one of the most culturally unique countries in Europe, as its culture is not one that may be traced back to a singular source of origin.
The property I would like to buy is located on Ulica Rolna in the heart of downtown Warsaw. The home, built in 1964, has been listed at a price of 215,000 Polish zloty, or approximately 70,000 Canadian dollars. This is a prime example of real estate in Poland listed at below the price one might see in another nation. In neighbouring Germany, for instance, a similar property was listed at a price equivalent to 205,000 Canadian dollars. In order to purchase this property, I would take out a mortgage at PKO, one of the largest banks in Poland. PKO offers attractive mortgages to first-time home buyers at a fixed annual interest rate of 2.5%. The mortgage requires a down payment of 30%, which would translate in this case to approximately 20,000 Canadian dollars. The remaining 50,000 dollars, or 150,000 zloty, would be the total value of my mortgage.
In order to pay for the property, I would work as a lawyer specializing in international corporate and capital markets for the law firm Dentons LLP. As a lawyer, I would be responsible for providing legal counsel to my firm’s clients. Given my specialization in corporate law, my work would deal primarily with corporate transactions, M&A (Mergers and acquisitions), and joint ventures. This work would perfectly fit my interests and career aspirations, and with a salary of $170,000 Canadian dollars, it would also give me enough money to cover both my mortgage payments and the rest of my monthly expenses.
Poland is one of the most overlooked yet promising nations in the world because of its lucrative real estate market. By buying a Polish home, I am not only capitalizing upon this investment opportunity, but also settling down in a nation that is truly becoming a haven for European culture.