Budapest Building Renovation (Sell or Hold?)

[Berlin72]

Hi,

I'm new to the forum and would very much appreciate a heads up on the following if anyone can help or share their experience.

I bought in Budapest in 2005 in District VI. The apartment has been mostly let since then and things were ticking away nicely until I got a call from the management agent this week to say that it is likely that the building will be renovated - starting this summer (new façade, elevator and top floor). I understand that a final decision will be made in March and that a majority owner decision in favour is sufficient to ensure it goes ahead.

The renovations will ultimately add value to the building but will also mean that I may not be able to rent the apartment for most of the next 2 years as it is directly under the attic which is being renovated (possibly could rent for a very low fee). The agent (who has not always proved himself to be entirely trustworthy) is trying to persuade me to sell now but when I look at similar apartments I think that I would just about break even, if lucky, because any profit would be lost by the fall in exchange rate since I bought, professional fees etc. My gut says to hold on until renovated and then sell but I would appreciate if anyone could share their experiences of the market there.

Many thanks

 

[Leper]

Your apartment is about to become a noose around your neck. You will break even which I would take over any loss which most other Irish property buyers in europe are suffering. Sell, sell, sell.

Then when you have sold you can consider buying another property somewhere in europe because prices have never been as low in most places.

 

[cremeegg]

Your apartment is about to become a noose around your neck. Sell, sell, sell.

I know nothing about Budapest or if you can afford the 2 year loss of income, but the question I would ask is will the renovation add significantly to the properties value.

While no one can tell the future it should be possible to develop a reasonable forecast.

Also who would buy now facing into a 2 year renovation project? It seems to me that this would be a distressed sale. If you are in a position to hold on you should investigate its prospects as well as you can.

good luck