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Invest Money In Times Of Rising Real Estate Prices?

February 12, 2019 0 Comment


 

Based on the most recent report on macroeconomic indicators describing basic trends in socio-economic development published by the Central Statistical Office, the amount of gross domestic product (GDP) in 2018 exceeded the expectations of market analysts. Data from the Central Statistical Office indicate an increase of 5.1% in relation to the previous year, which confirms that the rate of economic growth in Poland is the highest since 2007. The economic growth was driven by domestic demand, but investment in the index grew by 1.3 percentage point, while it was still negative two years ago.

The thesis is that Poles are getting richer, and thus try to consciously allocate their savings to investment products, expecting a satisfactory rate of return in the long term. It would seem that with rising prices on the real estate market there is no alternative to a stable, safe and risk-free investment. Collecting funds on the savings account or investments in risk-free treasury bonds, as a result, do not provide expected and measurable financial benefits. The possibility of high return on investment may be provided by shares of technology companies or cryptocurrencies, however, the risk of funds being lost is quite high, especially when knowledge and experience in the field of investment are not advanced and the dynamics of the market situation are high.

Real income after just 4 years

Real income after just 4 years

An example of a stable, profitable and long-term source of income is investment in a touchless car wash, allowing to achieve a return on investment already in the first 4 years. A wide range of car wash manufacturers available on the market offers various types of washing technologies and a wide range of services. Unanimously, each of the companies emphasizes that the decisive factor determining high income, including the type of business model, is the attractive location of the investment. The most desirable places are areas in the vicinity of the developed service and commercial infrastructure, gas station or car service. The Polish car wash manufacturer Hydropress offers attractive locations in commercial networks such as: Makro, Carrefour, Aldi, Shell, Tesco, Polo Market and large service and commercial complexes: Vendo Park, Stop Shop, Era Park, Central Europe, Atrium Molo, Smart Outlet Center, Marcredo Center, Quick Park, Metro Park and others.

Ready turnkey business

Ready turnkey business

Having a chosen location, Hydropress provides the investor with a ready and prospective business , implementing a turnkey project, starting with obtaining a valid building permit, making all earthworks, including connection to utilities and sewage systems, delivery, assembly and commissioning of a technological car wash. Then, the technical department representative conducts a two-day training course enabling free and informed administration of the facility for the operator and provides a set of technical documentation for ongoing service. In the next stage, the competent office issues a permit for use, and the finished investment is passed to the owner. After starting the car wash operation, Hydropress provides the longest device warranty on the market for a period of 36 months and performs quarterly service inspections. Service support is just one element of after-sales service. The investor gets the opportunity to join the Hydropress CLUB loyalty program, which allows you to acquire business clients, sales networks, car fleets, taxi corporation networks and other motorized groups of recipients. Taking care of the attractiveness and competitiveness of the car wash compared to other facilities, Hydropress introduced a wide range of additional equipment in the form of: vending machines – offering hot drinks, snacks and accessories for washing and car care; voice messages – reflecting the car wash manual; chassis washing program – thoroughly removing all contaminants that can lead to corrosion and destruction of steel elements, ramps to non-roofed stations – enabling thorough cleaning of delivery and large-size vehicles, or an ecological boiler fueled with biomass fuel, pellets.

Ecological and economic wastewater treatment plant

 

The automatic and maintenance-free system of closed water circulation, which enables the recovery of about 80% of utility water and its re-use in the washing process, is very popular. The recycling of water is based on four stages of purification, starting from sedimentation through clarification, aeration and filtering at the final stage. It is an extremely innovative, ecological, and at the same time economical solution significantly reducing the costs resulting from water intake and discharge of contaminated industrial sewage. In addition, in the case of real estate without access to sewage systems, the cleansing system allows the creation and operation of a profitable business, without the need to incur high operating costs due to waste disposal.

Traps of apparent savings

 

Analyzing the advantages of an investment product in the form of a self-service car wash and comparing counterarguments, it can be stated that the car wash market is already fully saturated and the construction of another car wash does not guarantee success or success. The fact is that the car wash market in Poland is still developing, but it does not reflect the saturation of the product. With each passing year, car wash manufacturers show an increasing trend in the number of washing equipment sold, and the demand for washing services increases with the number of vehicles purchased. Poles are buying more and more expensive cars, and thus expect high-quality cleaning, ecological chemicals and products that do not adversely affect the condition of the vehicle’s body. New car washes are able to meet the expectations of a modern client, however, in the case of a few or a dozen or so years, customers are reluctant to come back and do not use washing services. Exploited and requiring the modernization of car washes, customers lose no real competition for newly-built facilities.

An investment in a contactless car wash is an excellent capital investment for people looking for a stable and profitable source of income with a minimum level of investment risk. It is also a profitable segment of activity complementary to the existing car service, vulcanization workshop, vehicle inspection station or gas station. A wide range of car wash manufacturers available on the market allows you to choose the most advantageous solution that meets the individual expectations of each investor. However, it is worth analyzing the received offers in terms of the quality of the proposed devices and services that are an integral part of the price proposal received. It happens that the low price does not take into account the elements necessary for the correct implementation of investments such as transport, assembly, technical training and even the floor heating system, which is an obligatory element of the proper functioning of the car wash in autumn and winter. The relatively low price may also be a manifestation of insufficiently good quality components that will require service intervention and exchange over the first several months of its operation. As a consequence, the apparent saving on the equipment will cause the car wash to stop completely, and downtime will cause irreversible loss of customers. Therefore, before making a decision, it is worth analyzing the received offers in detail and thoroughly verifying their scope, minimizing the risk of future failure. Often, the apparent saving at the initial stage of investment can be an accumulation of expenses in the long run that will negatively affect profitability and profit from investments.