Budapest District VIII

ya bpartner i think don king is right on this one. its got too meandering and maybe a lot more topics could be discussed in regard to Budapest on some other thread
 
Could the title of the subject be changed to something less specific about the Budapest property market as opposed to starting a new topic with similar queries? Most of the posts cover the same general area.
 
I see Bpartner has been deleted. Pity as I found some of his comments useful.
I know he is affiliated to a management company & perhaps this is not allowed.
I will certainly visit him when I go to Budapest next & will report back on details of his company & if I find him good. I think a few of us are interested in hooking up with a good management company...We've all heard scary stories of some of the companies over there...
 
bpartner was banned and his posts deleted by Brendan for repeated breaches of the posting guidelines.
 
Ok Clubman,
Thanks for explaining. I did note he was warned but I'm not sure if he understood.
I appreciate there have to be rules & the site is well run.
So thanks for all your hard work
 
bpartner has been in PM correspondence with me and Brendan about it and says that he does understand the posting guidelines and how he was in breach of them. He wants to promote Budapest and his business to foreign property investors but Askatboutmoney is simply the wrong platform. Brendan suggested that he buy some advertising space in Irish newspapers instead.
 
Budapest District XIII

Hi.

First post. Please be gentle!!

Past few months ive been looking at my first venture into property investing & have stumbled accross Budapest. I have just come back from there this week & thought that the city was beutiful & does have some good potential.

I have seen a development in district XIII which is next to the river. No its not Marina Part. I am looking at a 1 bedroom which is €100k.

I was wondering if theres any locals on here that can offer any advice on this area. Is it worth the investment?

The agency has given me the conservative approach of a rental yeild of 6% but they are saying that 8/9% is achievable.

Any advice on this area is appriciated.
 
Re: Budapest District XIII

hello lanc red
i would not listen to a word that an agency says,i don't know much about budapest but you need to get impartial advice & the agency are certainly not impartial.
consider,just for a start,who's going to but your property in 5 yrs time,who's gonig to rent it etc?
proceed with caution
 
Re: Budapest District XIII

Hi lanc red,

Welcome to AAM. XIII is a big district and some parts of it are better investments than others in my view. At the minute, the part along the danube is being redeveloped into a commercial centre, so prospects for this area are probably quite good. The part closest to District V is also very popular among Hungarians but for some reason, not as popular among foreign investors. What is the name of the development you're interested in and how big is the 1 bed apartment? As ever, be cautious about what estate agents tell you about rental yield. I always find that it's a good idea to subtract 25% from their projections. There is also an oversupply of apartments in the city at the minute but good quality apartments are always rentable for reasonable rents. 6-7% is a good return for high quality investments in the city. 8-9% sounds unreasonable to me. Also, Budapest is a long term investment. In my opinion, you'll do well over a 10-15 year period. You definitely won't make a quick buck here.

Budapest
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Re: Budapest District XIII

Hi lanc red,

If you could give more details about this develepment, I would be more precise in this regard. In district XIII, there is a very exclusive development called Prestige Towers. Rent in this new development will be significantly higher than other residentials. But rental yeald of 5-7 % seems fair in the current market environment.

District XIII is a quiet big part of Budapest. Some part of this district is more appreciated than others. Which area of this district are you interested in?

Rent depends not only on the location but also the building itself (normal or high standard with leisure facilities) and the apartment itself (view of Danube, overlooking the green yard or park, standard or high standard furnishing), car space, etc.

There are a lot of apartments for rent and sale in district XIII now. Special investments are most wanted by both tenants and buyers.
 
Re: Budapest District XIII

Thanks for the quick, informative replys. The development is RiverLoft. Apartment size is 50m2 in total inc balcolny over looking park with partial river view.

Im not in this for a quick get out. I do understand that Budapest is a long term project. The agency mentioned that the potential tenant would be a professional or company who would be looking for an apartment for their employees.

Is it true that minimum rental period is 1 year?

Again your advice is appriciated.
 
Re: Budapest District XIII

Hi lanc_red,

Yes, it is true that 12 months of lease is met the expectations. Rental period is a mutally agreement between the parties you and the tenant.

Riverloft is next to Riverside. This part of district XIII looks like blocks quarter with 10-floor buildings.

100k Euro for a one bedroom apartment is slightly high price in this area. Like Riverside, leisure facilites will be available in Riverloft as well but rent can be the same. Expected rent for a high standard furnished one bedroom apartment can be 400-450 Euro per month.
 
Re: Budapest District XIII

ok thanks for the info. something is putting me off buying at this project & i cant quite put my finger on it yet!

as you say if the potential rental is around 4/450 a month then its not worth it as im sure i would be out of pocket with the motgage only just being covered.

the riverloft development will have all leisure facilities (pool, sauna, gym, shopping centre etc) which i would consider would help with achieving the rent.

we also went to look at a new development at the back of the synagogue. there was one already completed (renaissance). this didnt have any facilities on car parking but this was an extra €18k on top on 100k for the apartment.

advice is much appriciated.
 
Hi lanc red,

Be careful with the new developments over here as most of them are overpriced in my opinion and their prices have no relationship with the rest of the market. I'd suggest that you should definitely have a look at second hand apartments, even if it's just to compare. You'll get a lot more for your money and if you find the right one, you'll also achieve good returns also and in my opinion, capital appreciation should be higher. You should achieve 6% return if find the right one. There seems to be an oversupply of new builds without leisure facilities at the minute and I can't see everyone being able to rent their's out. The number of expats and professionals who can afford high rents is quite limited and most expats I know personally would prefer to live in an older renovated building if at all possible.

Budapest
 
Buda
have you come across the new development on O ucta, Cityhome Concierge Hotel. Good location. Being developed by Capital eyes aho are doing Andrassay Palace. One is actually buying a large hotel suite and all the facilities that go with it. I havent got the full details of how the package will work but these ventures have been popular in other large cities. The concept is shorter rental periods for business exec,s.
Ur opinion is appreciated!!
 
Hi emnc,

The City Home developers have had problems trying to sell these apartments. The design is awful and most people I've spoken to reckon that it's very much overpriced. O utca itself is not a prestigous location but it is close to Liszt Ferenc Ter and Andrassy ut, which are. There are similar schemes being built at the minute or in the pipeline. I'd imagine that something like the Andrassy Palace Gardens on Kodaly Korond will be more popular. Location is excellent and the developers are renovating an old building as opposed to constructing a totally new one. Prices are slightly higher, but in my opinion, rental prospects should be much better.

Budapest
 
Hi Buda, I have a situation a bit different from most and would appreciate any advice! My parents want to buy in Budapest, but not just as an investment, they plan to spend a lot of time there. They visit regularly also. They have an immediate budget of €60K, perhaps later in the year over €100K.

So while rental income is important to them, it's got to be a place that they like also, and they're only interested in old buildings near the centre. I picked out two from dh.hu, was wondering if you had any thoughts on them?

Budapest(VII.), Damjanich utca 66 m2, 3 room, II. 15 900 000 Ft
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Budapest(VII.), Damjanich utca 62 m2, 2 room, Ground 15 800 000 Ft
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One option they would consider instead of renting is working with a hostel owner, since this would allow them to make use of the apartment themselves for some time during the year. Do you have any experience with this?
 
Also Buda, a lot of apartments seem to have bedrooms leading off one another, which is unheard of in Ireland. Many places advertised as two-bedroom on dh.hu are really one-bedroom. I take it Hungarians don't really mind this?
 
Hi Nermal,

Welcome to AAM. I like Damjanich utca as a location. It's on the edge of VII, close to the embassy district of VI and the city park. These two apartments from DH are okay but nothing spectacular. Ground floor is not popular and both of them will need a fair bit of work. I think better properties are available. What are your parents' exact requirements? Do they particularly like District VII or are they primarily interested in a classic central apartment? I originally intended to buy an investment property here too but ended up moving from Ireland so I'd be interested in having a chat with them! The one thing I'd say though is that there's no rush when it comes to the Budapest market. Capital appreciation is not crazy at the minute. It's best to take your time and buy something that you're totally happy with. 100k is a much better budget obviously than 60k and it may be worth waiting until the end of the year and get something that they really like. For that money, they could live in a completely renovated spacious one bed in District V or a renovated two bedroom close to Andrassy in District VI. If they would like to move sooner, they could easily rent something here for a few months and suss out various areas. In relation to your query about layout, apartments in Budapest are generally laid out in rooms leading off each other, similar to Paris for example. Layout can be a big issue as many older apartments have plenty of space but poor arrangement of rooms. Living rooms often double up as the main bedroom.

Do your parents have any other specific needs? What are their priorities - location/space/price/green spaces/etc.?

Good luck!
Budapest
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Hi Nermal,
I can understand your parents interest in Budapest. It's a beautiful city. I could fancy living there myself some day.
There are lots of other places to look for apartments. Budapest can point you in the right direction. He found a beautiful 2bed apt for me on Andrassy ut for just over €100k.
It's much more reasonable to deal with Hungarian estate agents. English websites seem to have higher prices, sometimes even for the same apt ! This is where local knowledge is really useful.
Good luck with your search.
 
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