Learn the most important terms, which will help you to understand the property world and the scope of our business.

A transfer of rights and obligations to a specific property purchased by HB PREMIUM. The creditor (cedent), subject to the payment of a fee, transfers his/her rights and obligations resulting from the agreement entered into between him/her and the property’s owner or the developer, to another person (assignee).

Assets which constantly generate income and/or profits. In practice this means that work or investment performed just once generate revenue without the necessity of further work. One example of such an income is a property investment.

The waiting time for granting full ownership. This concerns a case when a claim to establish a separate ownership of the premises is made. On the basis of a notarial deed it can be disposed of or inherited. It also is enforceable by execution. It is mainly applied in the case of contracts entered into between developers (or cooperatives) and persons who wish to come into ownership of a property still under construction. Since the ownership shall be transferred only after establishing a separate land and mortgage register for a given unit, an expectative provides a form of guarantee and increases security of a buyer.

Purchasing and increasing the market value of a property to resell it for profit. HB PREMIUM also enables a partial participation in the cost of purchase of property and distribution of profits on sale.

A general rise in the price of goods. This is a situation when the same amount of currency gradually buys fewer goods and services. The purchasing power of money is being reduced, what frequently leads to investment of capital in fixed assets, such as e.g. properties.

A loan from a bank secured on the borrower’s property through a mortgage. This type of loan is a credit in which usually a large sum of money is lent with a long repayment time (even up to 40 years). Given the difficulty in forecasting the borrower’s situation and financial condition in such a long time frame, a mortgage secured on e.g. the apartment to be purchased forms a collateral to a bank. It is a loan for a specific purpose meaning the money lent are to be allocated for purchasing an apartment, a house or a plot. In case of failing to repay monthly instalments, the bank has the right of foreclosure. Prior to making a decision to take out a mortgage, it is essential to compare offers available on the market and choose the one best suited to your needs.

A publicly available, official document confirming the legal status of a specific property. It provides information and data about the address, owner, floor area of the property, its purpose, and a potential mortgage. A very important part of the register is the information on rights and claims related to the property. It is therefore extremely important to read the register before entering into a preliminary or sale agreement.

An apartment purchased by an investor to make a profit from tenancy. Among investment apartments one can distinguish so-called ready-made investments meaning prepared, renovated and equipped apartments ready for tenants to move in, and flats to be prepared (e.g. renovate, divide) so they become attractive to future tenants. It is estimated that currently the profitability of tenancy is 4-6%.

All types of properties that show investment potential, i.e. their acquisition may bring subsequent gain thanks to appropriate processes. Investment properties are particularly popular in case of transfers of rights and flips.

Return on equity is a rate used to measure financial performance i.e. determine what profits were made of the equity capital contributed and invested. In case of a property investment the ROE index allows to calculate the annual rate of return on a rental property. In order to determine it, one shall calculate the ratio of the annual rental income to the equity (without mortgage) invested expressed as a percentage. The higher the ROE rate is, the better the investment and the higher efficiency of return on contribution.

Return on investment is a rate of profitability. It determines a rate of return on a specific investment. The ROI helps to establish a cost-effectiveness of a planned investment project. In order to determine it, one shall calculate the ratio of the monthly financial flow (multiplied by a number of months the apartment is to be rented for, i.e. usually 12) to the invested capital expressed as a percentage (x100%). The higher the ROI rate is, the greater the profit.

It is a convenient residential space, often located in leisure areas, comfortable enough to be adapted both for remote work and as a rest and relaxation zone at the same time. Small houses in seaside resorts, apartments at the lakes with a private marina, or suburban houses are usually favoured as the second home.

Is a measure of the profitability of a given investment. It is calculated to determine the viability of investment. The higher the rate of return, the better and greater the profit.

An investment property calculated in economic terms in such a way the adapted space maximizes the result from the passive income, at the same time maintaining high adjustment standard limiting in the long run the costs of depreciation. This can be e.g. an investment in an apartment that will be divided and adapted to be rented to two separate tenants thus increasing a monthly passive income of the investor.

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