Budapest District VIII

DonKing said:
HD would you mind giving a little more info on the property near Liszt Ferenc? When did you buy? Was it second hand or new? What condition/floor? What condition of building? What street?

Many Thanks
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I bought it a couple weeks ago.
It's 2nd hand un-renovated, and needs renovation.
It's top (3rd) floor with no lift (and no plans for a lift)
73sqm, 3rooms (2 bed), 14MHUF
Building is in good/average condition - new roof
Street is Akafca Ut (close to corner of Kiraly)

IMO the best place to look is the local paper - express
There's a property supplement every Monday & Wednesday.
Of course for this you need to know the language,
and be able to filter through the hundreds of Ads quickly.
My g/f is Hungarian so, came in v.handy

budapest said:
I don't think that either is necessarily a bargain or overpriced as they are two totally different markets.
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I agree, a similar place on Liszt Ferenc Ter would have cost me a least double the price (50m up the road)
It seems often foreign buyers are only shown places like Lizt Ferenc
and don't get the opportunity to see cheaper places down the road.
 
mmmm,
the only pity is that, while it seems reasonably obvious that anyone who has read through these 10 pages on Budapest should leave with a bit more cop-on, and good info on what to do, where to buy, what to pay, and of course what to avoid; there are literally thousands of people having the wool pulled over their eyes every day, as they are too lazy to research the places, and instead buy into all the agent lingo. (by the way, I don't blame the agents whatsoever; its too easy for them to do this, so why not. unfortunate but true).

I get asked by friends and colleages quite regularily about foreign property; but they are all blissfully unaware of the local issues, good and bad; have no short-term or long-term outlook, and merely have $dollar signs$ for Cap Appreciation, and a wad of cash to spend on the first thing they see that has a price tag.

Is it any wonder so many are being ripped off?
and more to the point, should we sit back and smile
 


I'm considering buying a 2nd property in the area myself at some stage in the future as it is quite clear that the new apartments at the moment are selling at a premium for the decent locations.

Have you got any quotes yet for renovating the Apartment? What do you expect to pay?

I met a couple of Hungarians at Citywest a while ago and they specialise in renovating 2nd hand properties, sourcing tenants and then selling on with sitting tenants. They also provide property management services. They believe that they can source properties for clients in District 6 much cheaper than the new developments. I'll probably meet them the next time I'm over there and view a couple of the properties they have to over.

For reference it would be useful if you posted the price (or estimate) for renovation.

Many thanks
 


I have had similiar experence and quite a number of neighbours/friends have gone ahead and bought in Budapest without any research and in some cases without even travelling over there.

I now tend not to discuss foreign property too much with people as I would not like to think that I had any influence over someone making a bad decision/investment.
 
I think that those of us who have invested abroad and profited from doing so do indeed bear a certain responsibility to advise others.

In my case I think I 'talked-up' my involvement in the Romanian market too much to some members of my family. Now I get calls and e-mails asking that if "I invested x amount in a certain place could I expect it to be worth x multiplied by 2 in three months time?"

As I've explained to them 'investment' means the placing of capital (intelectual, finacial or other) into a particular 'project' with the expectation of an eventual gain. Hoping to pile money into something that will make you a millionaire over-night is generally called 'gambling'. Not quite the same thing!
 
Hi Don,
I bought a lovely apt on Andrassy Ut with the help of "Budapest" on this site. He did a lot of legwork for me, looking at different properties & knows the areas very well. Also found an English speaking solicitor for me & helped with everything.
Just thought I'd mention it as he's another useful contact & really invaluable to anybody who's not familiar with the city.
 


Thanks for the recommendation.
 
DonKing said:
For reference it would be useful if you posted the price (or estimate) for renovation.
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I renovated my 1st place for 3.5MHUF ~ 12k EUR
But I done alot of the work myself (re-wiring/tiling..etc)
I expect to renovate this place for 4MHUF ~ 15k EUR
My g/f arranges all of it, so gets it at local rates,
and doesn't ask for a receipt.
Apx 1/3 of the renovation costs was for new heating system.
 
But if you don't get a receipt then you won't be able to allow renovation as a legitimate expense against your capital gains tax when it comes to selling. Just a warning ....
 
Thanks for that article, Monsieur. It has some interesting facts but some of them are a bit misleading, I think. For example, a quote of "56% of sellers are unable to sell their properties within one year" would suggest to most people that it's difficult to sell a second hand property over here. The reality though is that the vast majority of used properties that are currently for sale on the Hungarian market are of poor quality or have some major problem such as noise/lack of light/position in building/position on street, etc. These apartments take forever to sell as nobody really wants them.

I would say that less than 10% of second hand properties are worth buying, but these sell very quickly, usually in a matter of weeks. It's a complicated market and buyers need to really research it but with a bit of digging, in my opinion, there is still excellent value to be found.
 
Hello,

Does anyone has some updates on the Millennium City Project (district IX)?
I would especially like to know if the building of the new "Harmony bridge" will happen, as I'm planning to invest in this area.
 
Hi I am interested in buying an apartment in V11 Dob Utca area and I would like to know how much per sq metre property costs in thar region thanks.
 
See ingatlan.com check out statistics of real estate for sale, this should give you a good idea but bear in mind these are for sale prices.
 
Which development are you thinking about investing in, donegal123? You'll notice that new builds in this area are significantly more expensive than older properties - up to 100% more in this part of District VII.

In statistics from last June, the average price for classic apartments in District VII was €943/sqm. Meanwhile, new developments such as Dob Udvar don't seem to have sold very well.
 

Dear Paddy, I know someone who was with Ballymore then and there was an illegal lawsuit by TriGranit Group against Ballymore and (to keep it simple) Trigranit won the first round, it was appealed and Ballymore won, and finally at the highest level of court in Hungary Trigranit finally won but my guess is something fishy was going on as the case was airtight in Ballymore's favor. This will now be the new site where the Hungarian government will be moving many of their offices. Budapest is still a beautiful city and opportunities abound... netvista
 

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Hi Paddy,
For your information (see my earlier response to you):

Demján-empire behind Nyugati
TriGránit, headed by Sándor Demján, plans to build a 1,000 square meter department store, a spacious supermarket, a small conference center, offices, a hotel and new apartments – all in Westend II. The starting date for the gargantuan project is still unknown. As the new government district is to be built on the neighboring site, TriGránit is still waiting on information to help them decide the best solution from a business point of view. It must be determined whether the three complexes (Westend I, the government district, and Westend I) will all complement each other. The plans for Westend II will finally be approved once the bids for the government district have closed. However, it seems to already be certain that it is worth connecting the two Westend buildings at one or more levels. Further, the final list of the most significant Westend II tenants is not ready yet, but it is common knowledge that there will be companies among them who did not find an area of suitable size at Nyugati the first time around. Additionally, it seems the six thousand people working in the new government district, as well as Westend’s 70 thousand daily customers and those living nearby would also all welcome a two or three thousand square meter leisure and sports center. (Vilaggazdasag)
 

is that the same site that Ballymore Properties were trying to develop, but after a lengthy court battle, it was decided that the WestEnd owners had a first refusal to purchase the same site from Mav? Which they duly did.
 
I recently purchased in the Atrium Development - next to the new government sector. Wont need to worry about renting it since its just off vacu ut and only a few min from Westside shopping mall and the underground. Only a 1+1. My next purchase will be in Czech Republic. I cannot purchase another property in HU without opening a company - and Gordons tax changes mean that its just not worth it.
 
MaxIII said:
Wont need to worry about renting it since its just off vacu ut
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I wouldn't be as confident as you, MaxIII. Rental supply is quite high in Budapest. You would need to make sure your apartment is better than the competition to improve its chances of rentability.

Secondly, you could purchase further properites in Hungary if you wanted to. The old restrictions have been lifted and you don't need to set up a company anymore for multiple purchases.
 
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