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Articles » Finance » Real Estate » Are The Communist Era Blocks of Poland Really a Bad Buy?
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- Article Views: 236
- Word Count: 910
- Date Contributed: Mar 18, 2008
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| Are The Communist Era Blocks of Poland Really a Bad Buy? |
At the end of the Second World War thousands had been made
homeless by the large scale destruction of cities such as
Warsaw. Many, however, either owned land or had relatives
with land. Wood was abundant and building a small house was
a quick and well understood task. Those that could did, but
those who were completely destitute were housed in the
surviving period properties of city and town centres.
This was a controversial policy. No one wanted the damp,
drafty, poorly insulated, difficult to heat apartments with
antiquated plumbing and outside toilets. They might be
pretty to walk past but in a country with sub zero winters
they were not a desirable residence.
This thinly spread population however created issues for
Stalin's industrialisation, cities had to have more
dwellings and, as with much of Europe, these were to be
built out of the revolutionary new material - concrete. But
they were not to be for the homeless or unemployed, they
were for the workers who would need to pay for them and they
were not going to come cheap.
Families pooled savings and worked overtime to generate the
deposits required to secure the new apartments in the grey,
bland blocks. Waiting lists were massive and, even in 1979
when 279,000 dwellings were completed, demand far
outstripped supply. Doctors and lawyers lived alongside
factory workers and nurses in unprecedented equality.
The appeal was a practical one. The homes were double
glazed, had radiators, inside toilets, hot and cold running
water, smaller rooms that were cheaper to heat, large
communal gardens, playgrounds for children, ample parking
and wide pavements and roads. Some were bought outright but
high prices meant the majority were co-owned with a housing
association. For the latter a monthly payment was required
to gradually buy out the housing association's share.
Needless to say, against this backdrop, a home in one of
these concrete blocks were a source of immense pride and
both the apartments and the blocks were well cared for by
their owners. They looked like the social estates of Great
Britain, France or Germany but in reality they were a world
apart. Better built and better managed they stood the test
of time while their Western counterparts were ripped apart
by council tenants who had no vested interest in the place
where they lived.
Where foreign journalists have gone wrong is obvious when
you know. They get off the plane and into a taxi which
drives them past these huge estates They think, "That's just
like a council estate I know" and they steer clear of them.
Estate agents and developers want to show off the country's
progress rather than its communist past and as hosts and
guides to the journalists they also steer clear of them.
Where they are partly right is that "Poles can't wait to get
out of them". New wealth and a much lower population density
than many other European countries has led to unheard of
opportunities and buying land on which to build a house has
become a realistic ambition for hundreds of thousands. Give
almost any person living in a flat the opportunity to afford
a house and it would be fair to conclude that individual
would say "I can't wait to get out of this apartment". It
does not mean, however, that there is anything wrong with
the apartment.
"But wait", say the journalists in their defence. "If it was
just about buying a house why do new developments of
apartments sell so fast?" The answer is in housing density.
In Poland this is more intense than anywhere else in Europe.
According to the United Nations there are 317 dwellings to
every 1,000 Polish inhabitants compared to 400 dwellings in
Great Britain and 425 dwellings in Bulgaria. There simply
aren't enough "old blocks" to go round in a country that is
getting richer and where young families used to live with
their parents and grandparents.
New developments do also offer alternative living and
provide a statement about any residents status as nuevo
rich. For the ever expanding young professional class modern
architecture, porterage, onsite security, a communal gym and
other luxuries are further obvious attractions. They do,
however, have to be matched with their downsides. The
service charges are higher, there is less green space as
builders are driven by profit on limited land, the build
quality can be worse with thinner walls between the flats
and the locations can be further out of town.
But the twentieth century estates are not crumbling. In
Western Europe the vast complexes thrown up as socialist
housing are now often considered for demolition. In Poland
they are being regenerated. New facades, extra insulation,
redecorated staircases, modern paving and children's play
areas are making eyesores into attractive neighbourhoods.
The improvements are well received by the owners of the
apartments and they are lasting rather than suffering
vandalism.
So what is the future for the "Communist era blocks"? Well
richer Poles have been following the habits of many
Westerners by becoming small property investors in the buy-
to-let market. The older estates represent better value for
money and have been ignored by foreign buyers while at the
same time there is little difference in the rental achieved.
This means yields of around 10% are comfortably realistic
while service charges and maintenance are low and stable.
These apartments also offer first time buyers a way onto the
property ladder in a market that has seen substantial price
rises.
It should always be remembered however that the ultimate aim
for the majority of Poles remains detached bricks and mortar
with their own garden and in this sense most "can't wait to
get out of these communist era blocks and these new
developments". But with a rising number of buy-to-let
investors and a realisation about how much they offer
compared to new builds it may not be long before journalists
will need to say "Poles and Foreign buyers can't wait to get
into these Communist Era blocks!"
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For solid, reliable and unbiased advice on buying property
in Poland get Tim Hill's essential printed guide at ==>
http://www.bookshaker.com/product_info.php?products_id=195
===========================================================
Article Source: UnArchived Articles
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