Transparency and reliable information synonymous with security in investing. Commentary on KNF and UOKiK announcements regarding condo hotels
At the end of September, the Polish Financial Supervision Authority (KNF) issued an announcement with reference to the opinion issued by the Office of Competition and Consumer Protection (UOKiK) on the so-called condo hotels, aparthotels and other alternative real estate investments such as dormitories or camping houses. This, of course, results from the growing popularity of real estate investments, in particular those intended for short-term rental. Although both documents do not concern our business directly, we believe that the good of the investor is of utmost importance. Hence, we support the activities of both offices – Michał Ciapka, the president of Higasa Properties, comments.
Reasons why Poles are looking for alternatives are abundant, for example:
- increase in wealth and savings
- rising inflation
- real negative interest-bearing deposits in banks, which in the vast majority give a guarantee that the denomination will be preserved over time, and not a real protection of the purchasing power of capital
- rising prices of apartments that are not covered by rental rates – only in the largest cities with long-term rental you can earn more than 5% per annum
- poor results of investment funds and the Polish stock exchange.
Investing in real estate is one of the safer ways to invest capital. You must remember that, as in any other case, you should be well prepared before you start your adventure with this market. You also need to know well where you are, in fact, “putting” your hard-earned money.
That is why I would like to point out that we strongly support and look with great satisfaction at the information and educational activities of KNF and UOKIK. I regret to say that Poland lacks reliable and well-prepared financial education at the school stage. Therefore, many people do not know how to analyse a potential investment proposed by a representative of one or the other company.
Unfortunately, some of the investments in condo hotels actually promise unrealistic profits or calculate them excluding costs, which results in the investment being actually riskier than it is presented. Five points that can be found in the last part of the announcement – including “check the contractor” or “verify what you are buying”, and finally “read before you sign” (I would also add the word “carefully”) should be instinctive before any investment you are considering.
At Higasa Properties, we always focus on transparency and reliability that result from Japanese principles that are close to us. This can be seen both in the fact that when we sell something, it is only real estate, and if someone wants to invest with us and lends us funds, they can do it only for a specific investment of their choice. We invite investors to cooperate with us only after we invest our own funds in works related to land development, commercialisation of retail space, design development and obtaining a valid building permit.
Security, apart from reliability and transparency, also results from the fact that, in Higasa Club, the client invests directly in a commercialised convenience retail park, which focuses on basic needs, such as food, cleanliness and personal care. Profits come directly from lease agreements, not some ideal “baseline scenario”. After all, it is hard not to agree with the statement that it is easier to give up holidays than food. By focusing on such definite consumer needs instead of the less stable tourism or even the fluid opinion of students in terms of their accommodation, the investment risk can be eliminated.
Therefore, following the KNF announcement, dear Investor – before you decide to invest your hard-earned money – read carefully what you sign, for how long you invest money, where do the profits in your investment come from, check thoroughly what you invest in and how this investment can behave in changing market conditions over time. Thanks to this, you will protect your money and you will most likely enjoy above-average profits.Back