How a Canadian Investor Profited 16% Annually with a Short-Term Rental Apartment in Gdynia

Introduction:

At Invepro, we assist our clients in making smart real estate investments that yield high returns. In this case study, we present the success story of a Polish-Canadian investor who purchased a short-term rental apartment in Gdynia. By combining tax savings, rental income, and property appreciation, the investor achieved a 16% annual profit.

Table of Contents:

1. Investor Profile

2. Property Details and Purchase Decision

3. Tax Savings and Financial Benefits

4. Rental Income and Personal Use

5. Property Value Appreciation and Annual Profit

6. Conclusion: How Real Estate in Poland Maximizes Returns
   
   

1. Investor Profile

Our client, a Polish-Canadian investor, sought to invest in Polish real estate as a way to diversify his portfolio and take advantage of Poland’s growing real estate market. He wanted a property that could generate short-term rental income while allowing him to use it for a month each year for personal vacations.

2. Property Details and Purchase Decision

The investor purchased a 49 m², 2-bedroom apartment in Gdynia’s city center, located on Św. Piotra Street, for 1,540,000 PLN. The apartment was fully furnished and equipped for short-term rentals, enabling it to generate income immediately. Its central location and modern amenities made it an ideal choice for both business travelers and tourists visiting the city.

3. Tax Savings and Financial Benefits

One of the major benefits was the 2% PCC tax exemption, resulting in a savings of 30,800 PLN right from the start. This immediate financial benefit is part of why investing through Invepro is so appealing to both local and international investors.

Furthermore, Invepro handled all legal aspects of the purchase, including notarial services and rental management, making the investment process seamless for the client.

4. Rental Income and Personal Use

The investor only uses the apartment for one month each year for personal vacations, while for the remaining eleven months, it is rented out on a short-term basis. This generates 60,000 PLN annually in rental income. With Gdynia’s strong demand for short-term rentals, the apartment remains highly profitable throughout the year.

5. Property Value Appreciation and Annual Profit

In addition to the rental income, the apartment's value is expected to increase by an average of 10-15% annually, which amounts to approximately 180,000 PLN in property appreciation each year.

In total, the investor’s annual profit includes:

• 60,000 PLN (rental income)

• 180,000 PLN (property appreciation)

This brings the total annual profit to 240,000 PLN, which equates to a 16% annual return.

6. Conclusion: How Real Estate in Poland Maximizes Returns

This case study illustrates how a strategic investment in short-term rental properties in Poland can provide substantial returns. By combining personal use with rental income and benefiting from tax exemptions, the investor profited significantly from the growing real estate market in Gdynia.

Looking to invest in Poland's real estate market?
Contact us today to learn how Invepro can help you maximize your profits and secure a stable financial future.