anchor.awake
Property investor
I’m assessing a 2-bed duplex in Warsaw at PLN 790,000. Expected rent is PLN 5,240/month, which gives a headline gross yield of roughly 8.0%. The building appears sound, but I’m concerned that its reserves—or insufficient reserves—could materially change the economics.
My conservative model allows for vacancy, management, routine maintenance and one larger repair reserve. Once management and a bad year are included, though, the cash flow becomes much less convincing. I still need to stress-test insurance, property tax, financing costs and tenant turnover.
For owners familiar with Warsaw rentals: which local cost or recurring charge is easiest to underestimate, and what net yield would you require to justify the risk at this price? It would be particularly helpful to know whether PLN 5,240 is realistically sustainable rent for this type of property, rather than just an optimistic asking figure.
My conservative model allows for vacancy, management, routine maintenance and one larger repair reserve. Once management and a bad year are included, though, the cash flow becomes much less convincing. I still need to stress-test insurance, property tax, financing costs and tenant turnover.
For owners familiar with Warsaw rentals: which local cost or recurring charge is easiest to underestimate, and what net yield would you require to justify the risk at this price? It would be particularly helpful to know whether PLN 5,240 is realistically sustainable rent for this type of property, rather than just an optimistic asking figure.