Buying in Budapest

As Budapest, I am also in this for the decent return long term. I am not buying to speculate and I pay what it cost for the help I need. All my investments are for 20 years+ so you can say that a dump or a pump in the market interest me little.

I can not say I find myself to agree with the "bitter" part. On the contrary I find the city to be alive with a lot of highly educated professionals.

We have heard a lot of stories about the Irish who got screwed. But I mean that is sometimes what happens. You win some you loose some.
 
fair enough I am sure that i have made mistakes there and am not cut out for foreign investments, but to me, the experience has had abysmal return from decent property, with majority of money being taken by the managers and legal types, who cheat and lie.
thats my tupence
 
You have been mostly unlucky I think. If something happens you are bound to loose a lot of money. That is the trouble with foreign investments. At least if you have not done enough research and preparation beforehand.

I think part of the problem mid 2000+- was that everyone was after a quick buck. Also the locals who saw foreigners with a fat wallet come to their turf. They even bought from people they had never met in person, and that is a huge error. At least when you also see where some of them bought their appartment.

There are huge opportunities in real estate market some places now, and in my head is Budapest one of them. The market is unprofessional and not in parity. But you need to be careful, and you will loose on some in the beginning unless you are lucky.

I have a question Budapest. I have stayed away from studio appartments and small 1 bedroom ones, but I look at some of the yield on them and they are quite good? You have experience with this? I am thinking inner 6th and 5th district now. Also... Is the building important to rent out in that segment?
 
Interesting thread gentlemen!

For the past few months I was looking for a long term investment opportunity and I strongly believe that buying property in Budapest is the right one. I was there recently to see what is on the market and was surprised with quantity and quality. Definitely a lot of different options! Just as FinOR, I am looking into renting apartment out to students and tourists. After reading your posts, I feel I need your input and advice if possible. I would invest in the range of 100K EUR, flat that doesn't need renovation, in very good condition, district V, VI or VII, 3 bedrooms (for 3 students or groups of up to 6 tourists). Any idea which parts of above districts or even streets would be the best for that purpose? Even real estate agent told me that there is significant demand for accommodation in season for groups of 4-6 pax. I hope I will find apartment that would be suitable for such investment scenario. Thanks a lot for your help!
 
Long time international investor here.

Would not have any interest in Hungarian property market with yields of 10%.
Too much risk in that market, in that country.
 
Importer - am asking you as you seem to know the international market...

I'm coming to the weird conclusion that one of the better markets to invest in is ... Ireland. More specifically, better two-bed apts in Dublin city-centre

Based on present sales and rentals one gets 10% gross yield or 7% nett pre-tax yield. And rents are increasing.

If one is not on the higher tax band then this means ,after tax, PRSI, USC ca. 4% nett post-tax -twice the nett post-tax interest on any deposit account.

The question is whether Dublin apts will continue to fall in price. Recent CSO stats indicate otherwise. With the increasing number of people wanting to live in Dublin and the high cost of commuting is it possible there's more of a chance of a price increase than a decrease? And if there is an increase there is no CGT for some years.

Is there any other city abroad where one can be sure it's easier, safer and more profitable to invest in at present ,other perhaps than in certain areas of UK or USA . Certainly Budapest would come along way behind Dublin.

If moderators feel this post is property-price speculation my apologies and please erase. It's meant more as a question.
 
Just sold in Budapest I couldn't wait to get out, the burocracy is unreal I lost about €25k in all and was so relieved to get out. My advice stay well clear.
 
Well, I decided to go ahead and I bought 90sqm apartment in VII district, newly renovated, fully furnished and with tenant already living in apartment! Very helpful lawyer and real estate company sorted out all the paper work and licenses and everything went easily and smoothly. Rent has already been collected for the first few months. Based on present rental I get 7% nett yield. I believe that having a good real estate agent and lawyer can help a lot to minimize obstacles in this process. Now looking for another opportunity in Europe to invest...
 
PATMAC said:
Just sold in Budapest I couldn't wait to get out, the burocracy is unreal I lost about €25k in all and was so relieved to get out. My advice stay well clear.
Click to expand...
Would love any advice on selling an apartment in Budapest.Currently have an agent who rents out the apartment but know I am being codded.Tired of it all.Can you recommend any auctioneer that I could trust.Don't mind selling for less-just want to pull the plug.
 
I was just reading in the paper here this morning, apparently over 50% of mortgages were written in Swiss Francs and with the removal of the peg in January capital debt has grown by a whopping 35%! Perhaps the next mortgage crisis has already begun as it seems other Eastern countries are in the same boat.
 
Seems there was some vested interests here at the outset of this thread trying to drum up interest in the country .. .. ..
(tip; beware newcomers to AAM talking about the next-big-thing - it wouldn't surprise me if these posters were in fact the same person logging in under different aliases)
 
contact23 said:
fair enough I am sure that i have made mistakes there and am not cut out for foreign investments, but to me, the experience has had abysmal return from decent property, with majority of money being taken by the managers and legal types, who cheat and lie.
thats my tupence
Click to expand...
Contact 23,
Have you any advice on selling a 90sq metre apartment in district 5.Paid 130 ,000 euro maybe 15 years ago.What do you think it is worth today?Any suggestions for a selling agent.Did you sell your property?I would love to wave goodbye to my Budapest investment!
 
Minogue said:
Would love any advice on selling an apartment in Budapest.Currently have an agent who rents out the apartment but know I am being codded.Tired of it all.Can you recommend any auctioneer that I could trust.Don't mind selling for less-just want to pull the plug.
Click to expand...

I owned an apartment from 2005 to 2009 , I deal with duna house when it came to selling
 
Hi All,
I moved to Budapest 6 months ago and know the city pretty well by now. I'm poised to buy a top floor 100sqm apartment in Akacfa U in a new build where almost all the apartments are rented out as serviced apartment/holiday lets by one of three companies in the building. They seem to guarantee a good rent. Does anyone have any experience of this kind of thing or advice?
 
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