Developer under scrutiny
So you want to invest in a residential property ? While spectacular bankruptcies and preposterous shenanigans of real estate developers are less frequent than they were in the past, it is worthwhile to run a check on a developer before signing on the dotted line. Please read on for some hints.
How can you burn through PLN 500k ? There are, in fact, many ways, such as gambling, a business venture gone wrong, or marriage with the wrong person without the benefit of a prenuptial agreement. And there is also putting your money down for an investment property without running due diligence on the developer (...)
When buying a flat from a developer, the potential risks are legion. The first, and basic, one is the risk that the developer may never complete construction. Alas, even with the present boom in residential projects, such situations do occur, to witness the Warsaw company Włodarzewska.
“The computerised mock-ups of the interiors and the surroundings do not always square up to what actually ends up getting built, and this is one of the less grave risks”, comments Dorota Dwornik of otodom.pl.
Examples are aplenty, to mention only the difference between the artistic visualisations and the final effect of the development of single-family houses outside Rzeszów, an extensively covered case from the beginning of this year. Other problems include defective electrical or plumbing work and structural defects of the building itself.
The full text of this article is available (in Polish) in My Company Polska. If you are interested in an English-language version, please contact: firstname.lastname@example.org