Its all about location at the end of the day, and if you add a well built property with nice finishes, and you can buy it at or below market price, you will be able to keep it let and sell it at a profit whn you need to exit. Almost as important, a well located property will sell quickly in the event that you need to cash it in.
Of the mass market stuff that was bought in Ireland at exhibitions etc, only a few met with all these criteria. The "Madach" project (Autoker Holdings) was probably the best of these and anyone who bought it at the original price will be happy. The second rate stuff in that project-- the attic apartments with their sloping walls, are now selling for a lot more than the original units, and to local buyers.
Autoker also sold some excellent projects in the city end of the 13th district, Caesar/Cleopatra and Romei haz are all doing well and are giving in some cases spectacular returns vis a vis other stuff sold at the same time. It is hard to find an apartment to rent in these projects right now.
Some of the other Autoker stuff though was overpriced, and consisted of massive developments in areas that are not sought after by local renters or buyers. The majority of the owners in these projects are foreign, with a high proportion of Irish. In general, they paid to much.
Apartments in some individual apartment buildings down town were also sold to Irish buyers at inflated prices by a rash of agencies who moved into Budapest with little knowedge of the market and hoovered up all the available property regardless of where it was or how well it was designed. In some cases, the dreaded "rental guarantee" was a feature, and made for even higher prices.
For many Irish buyers, Budapest may look like a minor mistake, but even so, most of their investments will come good in time. The worst off are the people who bought in the worst areas; a lot of stuff was sold to Irish buyers in bad areas of the 8th etc, and at prices more correctly related to the city centre. The ones who did a bit of research and bought with their heads instead of their hearts though have been enjoying good returns and steady appreciation, and this looks set to continue. Anyone who bought in one of the small infill developments in good residential areas, and bought at local prices, has enjoyed a nice return both in rentals and capital growth. Personally, I am betting on further growth and I am adding new units to my portfolio in Budapest all the time, but you won't see me buying at a property exhibition!
I bought an old apartment in the 5th a good many years ago, before most Irish people even knew where Budapest was, but it hasn't done any way as well as the new build, with several rental gaps, and even now that it is let it is giving a mediocre return relative to its current market value. Even so, I would be loath to part with it; it is a beautiful living space and its day will come, but it isn't what the market wants. A pity, but that's the truth of it.
As a byestander on the sidelines of the buying spree in Budapest in the last few years, I was astounded at the lack of planning and forethought of the Irish buyers. What saved most of them from a complete roasting was the fact that a few of the market leaders in the field were good operators, and sourced the best product. Even the ones who bought the rubbish will escape with their money though; if you buy (even secondary locations) in a major city that has growth in the market you will eventually do ok, even if your returns over the interim period are small.
I watched with consternation when the fashion switched to Bulgaria; the same cross-section of the populace made the same mistakes of listening to salesmen with no real market insight, but in this case they rushed into a market with none of the saving graces of a major and growing city. They are the ones I feel sorry for.
Now how did we get here from Poland? Apologies for the drift.
I suppose that the thrust of the post is the same -- the day you buy is the day you sell etc. Unless the demographics suggest that there will be potential buyers when you want to exit, then you have no exit strategy and you are probably going to lose money.