Budapest dist 9.

L

LARD

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Bought apt of plan 3 yrs ago with intention of selling when complete,but believe market is slow?.Will cost 6k to furnish,and rental income for year will be approx 6k,so should i cut loses and hope to sell within year,or let out(how is rental market).Anyone know costings on snagging and getting a mortgage,as credit crunch is starting to bite my pocket,any assistance greatly appreciated.
 
Have you checked to see what similar properties are currently selling/listing for on the local Buda property websites? and then compare what you paid per sq.m to what you think you can sell it for per sq.m. Add in the cost of fee's etc, and then see if you can make a profit. Flipping at the moment is almost impossible and in the 3 years since you bought (depending on if you paid Paddy price), I wouldn't expect much profit after fee's and costs etc.
 
Not a good time to sell property anywhere, including Budapest. At least you can console yourself that you have done better than if you had bought a property in most parts of Ireland, or even worse, in somewhere like Bulgaria. Budapest seems to be holding up ok, so far anyway.
I have an apartment in the 5th district, it rents steadily with very few misses. Maybe I've been lucky, but Budapest has given me less worries than other places. My advice would be to hold, if you can. Wait for the storms to blow over.
 
In my experience, it is rarely difficult to rent well-renovated and furnished apartments in Budapest. There are lots of potential tenants looking for certain types of properties and rental returns are good. If you bought the right type of property in District V at the right time, Lollix, then you should also be sitting on some capital appreciation over the past couple of years, but as you say, selling is not really a good option at the moment in Budapest or anywhere.

LARD, unless you urgently need some cash, I'd furnish to a high standard and rent out your properties. Alternatively, mortgages are available in Hungary up to 70% LTV but borrowing costs are not cheap at the moment.
 
Thanks lollix and budapest for advise,will try and rent out for a few years and see what future holds
 
As budapest said, it really depends on how much you need the money, or indeed how hard you want that money to work for you.
On the one side, the costs of keeping it are not insignificant: you still have to get mortgage approval, which could cause problems with the Agent/builder if there are delays. You also have to do snagging, connect to the utilities, and furnish; all before finding and paying a letting agent, and then declaring for income tax.
If you're original intention was to flip it, then I'd nearly say you might be better off doing that anyway, especially if you have made some Cap Appreciation.

heres a useful link for live pricing (add maybe 15-20% for a new build, as these figures includes all types of dwelling for each district).

the key column is 'average price m² (EUR)'. this is the only figure that matters when selling or buying. What you paid per sq.m, and what you think it will realise now per sq.m.

also, the same site is a hungarian equivalent of daft.ie to compare prices of similar properties to your own
 
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