Nowadays, construction is important, but above all, diversification of the investment portfolio is key. It is the foundation and the ABCs for every entrepreneur who seriously considers the future of their finances. Today, I would like to propose one of the ideas for managing your cash. It is a historic investment property in Silesia, regarded as an ideal instrument for capital allocation.
It is often said that investing in historic properties carries significant risks, primarily related to the renovation process based on the conservator's project. There is some truth to this, because when an investor purchases a historic investment property, they must be prepared to actively cooperate with a heritage conservation officer in the area where the property is located.
Honestly, much also depends on the real estate agent or broker representing the seller. In short, it depends on the Real Estate Agency representing the seller. Since understanding the needs of an investor seeking a particular historic property provides valuable insight. But most importantly, it helps assess whether the property is a good investment option for the buyer.
If we already know that the building is intended for purposes different from what the buyer envisions, we should block the sale. However, such matters are always checked before the final purchase of the building itself. Therefore, having knowledge about what can be developed there and what the client desires is the responsibility of the Agency handling the property, and they should inform the buyer accordingly.
Historic property in Silesia
As promised, I would like to present to you an extraordinary property in Oborniki Śląskie, which is currently for sale. The building was constructed in stages at the turn of the 19th and 20th centuries as the main building of the Bad Oberningk health resort. The name Bad Oberningk simply refers to Oborniki Śląskie. The origins of this esteemed spa date back to the first half of the 19th century!
It was then that the iron-rich spring was discovered here. Consequently, beautiful sanatoriums were built, often amidst the lush local forests. This is the strength of this area — it has preserved many impressive historic monuments. You can also see many stylish villas from that period as well.
The building, known as the “Old Town” villa, is registered as a monument by the Lower Silesian Voivodeship under number 553/1-5/A05, based on the decision dated 17.11.2005. Its usable area is 1600 m², on a plot of 2270 m².
As you can see, there is enormous potential associated with this property. The current owners have received permission to convert the building into a guesthouse and service facility. This makes renovation and redevelopment easier for the future investor. It is especially important for restoring the building’s former glory, according to the plans of the future owner and the scope of the granted permits.
Historic investment property – key information
The entire structure consists of three segments, forming a harmonious whole. Two of these segments include 32 hotel rooms and a restaurant, while the central part is planned to feature a banquet hall of 240 square meters. The property was designed for hotel services, a nursing home, or possibly a large wedding venue.
Ultimately, everything depends on the imagination of the future buyer, but as we see, there are many options to consider. As I mentioned, the building has all necessary permits for redevelopment, including the building project and access to utilities. Its location is also significant, as it is situated within a historic spa park, with walking trails and stunning viewpoints.
This extraordinary historic investment property is located within the Kocie Mountains range, specifically on the Grzybek mountain massif. Its entire design is strongly influenced by 19th-century sanatorium architecture. In those times, it was beautifully constructed, as evidenced by the preserved wooden interior elements of the building.
Importantly, the current building owners have already carried out a series of renovations and reconstructions of three roofs, including enlarging the attic spaces. Work has been undertaken to strengthen the structure of the property itself, such as steel beams and concrete injections. As for new projects, necessary demolition and adaptation works have been completed.It is worth noting the possibility of deducting part of the expenses related to construction works. Here, an important point is investing in historic properties, because since the beginning of 2023, there have been changes in the regulations. The future owner can, of course, deduct the costs incurred for renovation, but only with written permission from the provincial heritage conservator to carry out conservation works. Therefore, the future investor has this matter settled, as such permission has already been obtained.
Historic Rest Home?
Many prospective investors wonder what can be done with the purchased property. Naturally, everything should be viewed very realistically, considering the funds we want to invest and the permits obtained from the provincial conservator. The owner or entity acquiring the property primarily aims to profit from it.
And with historic buildings, opinions vary regarding the return on investment. One thing is certain – such investments should be considered in terms of long-term return. If I were to invest in this particular property, I would open a Prestigious Care Home and Retirement Residence.
Firstly – proximity to a large city like Wrocław. Secondly – demographic trends in our country. Thirdly – the obvious trend of investing in premium retirement homes. Fourthly – the ideal layout of the building for such a purpose. Today, large investment funds are focusing on the senior market because all of Europe is beginning to transform into a single large retirement home. Major global brands know that this is a sector that will develop rapidly. That’s why I am betting on redevelopment specifically for this purpose!
For me, it is also extremely important to assist the future owner with architecture, the entire reconstruction process, all formal permits, visualizations, and securing funding for this project.
If you want to see this promising historic property – I invite you to a meeting.
Call – 791 394 349, or write – michal@luxuryproducts.pl
Michał Cylwik
Luxury Brokers
