Budapest District VIII

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corco2000

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Hi, Can anyone tell me what this area is like, district viii.
I have read previous topics on this forum which suggest 'parts' of viii are good?
In or around Alfoldi Street/Kun Street beside Erkel Szinhaz Theatre Fiumei ut/Rakoczi ut. Is it up and coming?

I know its on the Pest, where there has been some 'rejuvenation' typically to dist.ix for ex.

Would this be a good area to invest in? As far as I know there are plans for a metro 4 line going out this way.And lots of colleges in the area.

How much typicaaly would you pay for a one bed approx 45 sq m new apartment?
 
I wouldn't really recommend investing in most of VIII but there are parts, which are fairly good. But any of the streets you mentioned are not good - probably one of the worst parts of central Pest and nobody I know would choose to live near there. I'd imagine therefore that whatever you've seen is probably quite cheap. Closer to Kalvin Ter is a lot better, such as part of Baross utca, but even still, there's nothing so amazing about that area either. No more colleges in VIII than anywhere else and public transport is already great in Budapest so extra metro lines will make little difference in future prices.

IX close to the korut is good or V, VI and parts of VII, but new builds tend to be ugly and overpriced in my opinion. Try for price guides for any of these areas.

Let me know how you get on...
 
Budapest, Thank you for your advise. I have read all your other comments on other forums,very helpfull.Woow wasn't expecting it to be that bad an area.There is a paticular development in this area that i have seen and was concidering investing in.Its a new apt at €60k which I suppose aint cheap if it's in a bad area.
Is there plans to rejuvenate this area do u know? Is this price excessive do u think?

Thanks once again
 
I'm sure VIII will be better in years to come and the government does want to improve the area but for peace of mind, I really don't see the advantage of spending 60,000 here when you could do so in a better area. You will very probably have problems renting it out and when it comes time to sell, you may also run into difficulty. For that money, you could get a second hand apt in VI, beside the opera and just off Andrassy ut, bang in the centre of town.

Also, be wary of what the estate agents tell you about rental returns. Realistically, for example, a two bed apartment of around 80sq metres in good condition and a good area will rent for 400 euro per month. A one bed will rent for around 330 euro per month.

I don't want to tell you want to do. I'm just giving you my opinion based on what I've seen and also from what people have told me in the few years that I've been living here. Hope it helps...
 
Budapest, You seem full of sound advice. I've heard that it's easier to rent new apartments than older ones. The older ones even though renovated themselves might not have the plumbing/wiring in the entire building redone. Also that a parking space is important

Am seriously interested in this area & have read so much conflicting advice it's hard to know which is true. Definitely will be sticking to looking at V, V1 & V11 ......that's the one thing everyone seems to agree on.

I'm planning on taking a trip out shortly to view some of these places & get a handle on banks, solicitors , management agencies etc

Any advice would be most welcome.
 
budapest said:
I wouldn't really recommend investing in most of VIII but there are parts, which are fairly good. But any of the streets you mentioned are not good - probably one of the worst parts of central Pest and nobody I know would choose to live near there. I'd imagine therefore that whatever you've seen is probably quite cheap. Closer to Kalvin Ter is a lot better, such as part of Baross utca, but even still, there's nothing so amazing about that area either.
Click to expand...
Can you clarify what you think is wrong with these areas? When I visited Budapest a couple of years ago I was in that area quite a bit and didn't notice any major problems.
 
Clubman, that particular part of district VIII is not popular with locals over here and I'd imagine that it would be more difficult to rent out apartments here than in the other districts of central Pest. Despite being quite close to the centre, it is not a desirable area, unlike V or VI for example. The reason that people don't seem to like it is that they believe crime is higher here and it was traditionally the centre of prostitution in the city. There are patches of it, which I'm sure are fine and I can't say that I've seen any trouble myself but if you were to ask any Hungarian where the worst part of the centre was, I'd say that 90% of them would agree with me. Many of the new buildings in this area also seem to be aimed at foreigners, who may not be aware of local opinions. The part of VIII near Kalvin Ter is much better.

Perplexed, estate agents seem to be telling investors that it's easier to rent out new apartments than older ones. I agree with this in part in that you're right in saying that a parking space can be important and most of the older buildings in the city won't have parking. However, most people who live in the city centre don't have cars as the public transport system is great. New builds are also a lot more expensive and in my opinion not worth the extra money. Any I've seen are poorly built and not particularly pleasing to the eye. They remind me of the type of apartments that were built around 1992 in Dublin city centre.

If it were me, I would buy a second hand property on the best street that I could afford. If you take your time and look around, you can find good investments that won't even cost any more than a newly built, unattractive and poorly located apartment.

Let me know of any other queries you might have.
Budapest

[broken link removed]
 
Hi Budapest,
Had a quick look at your link. Are you part of this organisation ?

I might do some business with you if you are.

It's great to get unbiased opinions as sellers for new builds tell you one thing & the second hand guys tell you another. They're all good salesmen ......hence I'm perplexed.

I 've been to Budapest a few yrs back & yes some of the old buildings are really lovely. I guess I'll have to arrange to see a few. From looking at different sites the apts look fine but it's hard to get an idea of the condition of the general buildings. I know they look lovely from the front but what about things like dampness or antiquated heating systems in halls ? Maybe I'm getting too specific here.......Just you seem so knowledgeable....And I am grateful.

I found your comments about Bank interest rates on another thread. They sound incredible in comparison to Irish rates......& I'm a banker. would like to find out more about that too...

If you're interested in helping me out, I will be going over in mid Feb.
 
Thanks Budapest for your help on this site last year.I have now rented my place and am working with a new property manager.I had terrible trouble getting rid of the old property management company who in the end basically stroked me.This company has and had a lot of Irish Clients on their books and appeared to be reputable, but I`m fairly sure they are all being ripped off.So anyone going out there should be careful who do are dealing with.
 
No problem, Shay. Glad you got the place rented out and that you have a good property manager working for you. It's a far better bet in my opinion than selling so quickly after buying. Hope it continues to do well.
 
Shay, I am in the process of buying a one bed apt in Budapest. I will be renting it out. Can you give me any general tips and comments on this process please. How did you furnish etc and costs roughly. Can you name the companies-good and bad, so we know to avoid?

Any comments will be appreciated. Thank you.
 
I bought my apartment in 2004 and located it through a Hungarian friend who done all the leg work for me.Unfortunately he is no longer in a position to assist me.
I placed the property with a company who I am loathe to name as I dont know if I`m legally allowed to.It was a second hand unfurnished apartment in reasonable nick.As soon as I signed up with the company I was asked for 5k to furnish it.I refused as it is only a 49 sq mtr apt.and I felt this was excessive.I asked them to let it unfurnished.For a year they did nothing,and I mean nothing.They never once opened the door of the place and made no effort to furnish it.I left them after a year and moved to a smaller company who organised the furniture for me for 3k,set the apartment,and provides accounts each quarter.So far so good.When I finished with the original company I was charged three months management fees,and had to travel to Budapest and kick up a bit to get everything sorted out.Their were also a lot of dodgy charges on the acccount,plus commision which I was unable to get to the bottom off.Bills were not paid on time,(water,heat etc).The only bill that went through like clockwork was theirs.
The company I`m with now was set up by an ex employee of the first one,so was familiar with their modus operandi.I took a chance with her and am happy enough so far.....touch wood.
I`m renting for 300 a month at present in district 5,beware of what they tell you with regard to rental income.I was told 500 was possible but with what I know now that was crap.
Also when you purchase make sure you pay your stamp duty promptly,my stamp duty bill was sent to the property but as it was unoccupied and the post not checked by my management company,I had to pay an extra 1k for late payment.
 
Rents are a bit unpredictable over here, alright. I know of some people who do in fact pay 500 euro for a one bed apartment in district V, so your old company may not have been telling you out and out lies-just being a bit too optimistic. Also, 5k for furnishing is possible, if you go for high end. (which you need if you want any chance of getting top rent.) However, I agree that you had terrible service and it's great that you have sorted everything out.

Stamp duty is usually paid approximately a year after you sign final contracts but sometimes sooner.

Corco2000, out of interest, have you gone ahead with that 45sqm met apartment for 60,000 euro?
 
Shay thanks for that...I will defo have all eyes open etc...That sounds like abit of a nightmare.Has the price of your property appreciated by much do u think since last year or our u at a loss?
Goes to show you have to be very weary with management companies alot of trust involved. I had similar problems here in Ireland with estate agent. And I knew when the first issue came along I was snookered.Too late after I had paid fee for the year...ended up pulling out anyway, wasn't worth the stress.

Yes I am going a head with the purchase of this property in District viii.

I am assuming then you can easily pay 5k to furnish. Our management fees 10% or a months rent?
 
We bought an apartment in District VI (Szinyei Merse) before Christmas through the one of the Irish estate agents who are promoting Budapest. It is on Szuinyei Merse and due for completion in October / November 2006. For one bed (60 sqm), we paid €95k.

We went to Budapest last week to see the construction, city, etc and were very happy with the location of the apartment. It is extremely central and though the street itself needs a facelift, I believe the complex will provide
this when completed.

We asked the Irish estate agent if we could meet with one of their representatives in Budapest - to show up the complex, etc and this was organised for us. We also got to see the standard tiles, fittings etc. which will be in the apartments and a choice of more expensive options, which we didn't take as the standard ones looked fine to us.

We were given a contact name of an estate agent (who is also connected with the builder) whom we met to discuss rental options etc. and were shocked to hear she charges 18% of rental income plus VAT @ 20%. Estate agents in expensive Ireland hardly charge that!! We have a contact in Ireland who rented out an apartment in Budapest last year and we will follow up with him to see what he is paying etc.

The estate agent advised us to initially try to rent unfurnished (expect approx €400 per month) and if unsuccessful, she would then suggest furnishing and to expect a rent of €480 per month. This does not include car park space - which "of course" she suggested we buy. Reading the comments and from our experience last week, the public transport systemm in Budapest would cast a doubt on the need for a car space.

With a local tax at source of 25%, it is hard to see anyone profiting from the rental market. However, we are hoping for significant captial appreciation.


valc
 
Valc

Can you name the Irish estate agent you used by any chance

Also, did anyone happen to use euinvest.ie.

Also, can anyone tell me their experience with paying a Hungarian mortgage - is it all relatively straightforward..

Cheers
 
Valc,

Also bought in Szinyei Merse, and a similar apartment 2 streets away in Sziv st which will be finished in a couple of months. Property management company is charging 10% + VAT so I'd suggest 18% is ridiculous. I was also contacted by another company charging 8% but I believe they're a couple starting out and I'm not sure of their track record. The management company recommends to furnish to let to foreign students or execs, this will cost in the region of €6k. I agree public transport is good but I bought a space as parking seems to be an issue and makes the apartment a good resale package later. I have not signed contracts with the management company yet and need to move on this but would be interested to hear of anyone elses experience or plans in Budapest.
 
Id be interested in knowing the possibility or otherwise of obtaining a Hungarian mortgage - is this feasable.

Also can anyone recommend reputable estate agents or property management co.`s here or in Hungary..
 
Shaneo

We bought the apartment through Sherry Fitz Davitt in Mullingar.


valc
 
Killian


Can you share the name of the management company who are charging 10%. That's more in line with the rate we would have expected.

The company we were recommended have a lot of Irish clients on their list. They are connected with the builders and also with Sherry Fitz. I guess Irish investors just sign up without shopping around.

Tnx

valc
 
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