On the market, there are more and more offers for investment in Condohotels in Poland. Usually it applies to tourist apartments in polish seaside resorts, polish big cities, polish mountain resorts. At first sight, an investment in an attractive property seems very beneficial. However, as just like every investment, common sense and caution are also advisable here.
At first, it should be note who offers such investment and check the company out. Then it is important to investigate the legality of the investment and its stage, especially whether the party to the contract actually run a business and owns the property and then will become its administrator.
Often, from the very beginning, the construction of a hotel is financed from investors' money and there may be a problem when the financing ends at some point. For that reason it should be considered, that the earlier stage of investment, the bigger risk that investment will be not finalized.
It should be pointed out that the sold apartments are non-residential, and therefore, property buyers are not protected by the provisions of the Act on the protection of the purchaser of dwelling premises or a detached house. Thus, for example, the paid funds are not subject to special protection. The following contracts are most often concluded by way: preliminary contract, developer contract, lease contract with a guaranteed profit at a fixed level, a lease contract without a guaranteed profit (profit depending on the amount of income earned and without the upper limit). It’s also worth knowing in advance how high the costs of the management are and the rules of participating in it. Cause unprofitability of the hotel is another risk burdening the investor.
It is also worth guaranteeing the real possibility of using apartment and checking how it is used when we are not there. Is it possible, that the calculation supposing, that the apartment is rented whole the time is real to be achieved? What if the seller or property manager declares bankruptcy? Will it be possible to rent an apartment on your own?
If you are interested in the investment, then it is worth comparing the contracts offered by various developers in order to take advantage of the best option.
The Law Office helps in analyzing contracts and checking investment documents.
Attorney at law