Profitability analysis

Why are meters alone not enough?

Most investors in Toruń make the same mistake: they look at the purchase price and multiply it by the average rent from classified portals. In the case of tenements, it's a direct way to loss. The brick doesn't lie – the state of foundations at Mostowa or Łazienna streets can change profitability by 14% within one year. We go down to these cellars, check moisture and ceiling status before you even think about paying a deposit.

Real Return on Investment (ROI), not wishful thinking

We prepare a document that usually has 13 to 19 pages of specific data. We don't use rounded numbers that look nice in presentations. If our calculations show you will earn 6.7% annually, that's exactly the value we will put in the table. We look for a second bottom in operating costs, including renovation fund, historic real estate taxes and real lease management costs over 8 years.

Conservation costs under strict control

Renovating a monument is not a regular construction. You must know that replacing windows with wooden ones of a specific profile, required by the office, costs on average 38% more than standard woodwork. We know this because in the last 4 years we supervised 17 such replacements in the center of Toruń. We count every meter of plaster and every stucco, so that in the middle of work you are not left with a torn roof and an empty account. We are brutally honest advisors at this.

Heads-up: Honestly, not every tenement in the Old Town is a bargain. In 2023, we advised our clients against buying 9 objects, because wall drying costs would have eaten the predicted profit for 11 years ahead. We prefer to say "no" at the start than to watch an unsuccessful investment.

Rental forecast based on a portfolio of 83 premises

Rental rates in Toruń depend on details not visible in Excel. An apartment with a view of the Town Hall will rent for 240-360 PLN more than one from the side of a dark courtyard. We know these realities inside out because we currently manage 83 premises in the Old Town and Bydgoskie Przedmieście. We know who looks for accommodation here, what their requirements are for heating and how much they will realistically pay for the climate of old brick. Old walls, new profits – it's possible, but only when we count every meter with a pencil in hand.