Analysis of the Income Gap and Divergence of Purchase Prices of Investment Units in a Condo System on the Basis of Selected Properties - a Case Atudy
Analysis of the Income Gap and Divergence of Purchase Prices of Investment Units in a Condo System on the Basis of Selected Properties - a Case Atudy

Summary/Abstract: Purpose – The main intention of the analysis was an attempt at defining the income gap and identifying the return from condo units in Poland. Design/methodology/approach – The article presents the subject of condo properties. Two main types of condo properties have been distinguished: condo apartments and condo hotel rooms. The fundamental differences are presented. The research uses case study approach. Findings – The research suggest that rent calculation mechanism is the decisive factor for the occurrence of an income gap in investments in condo property. This is affected by three aspects: The requirement to buy furniture/equipment and no rent charged for the invested capital. The requirement to buy a parking place, which is not included by the operator in the determination of yearly rent on the invested capital. The investor exercising their right to become a resident owner of the condo unit on the applicable terms. Research limitations: The analysis covers condo units in towns with significant tourism potential, and in Warsaw. The sample includes selected operator contracts examined for six condo properties in Poland. Research implications: The paper answers two vital questions that may be interesting to property investors, both institutional and individual: Which factors explain the annual retur from cond properties in Poland? What are the annual returns under specific contract terms in the circumstances of the Polish condo property segment?

• Details
• Contents