Buying Property In Budapest

F

fender

Registered User
Messages
140
I am interested in purchasing in Budapest V, VI or V11. I have been looking at Duna House website for the past 6 weeks. In that time only 2 of the 23 apartments that I have tracked have been sold. These are in the 25m to 35m Huf bracket and between 80 and 100m with 3 rooms. They are all classic, renovated to a high standard with good interior and exterior.

As I am purchasing as an investment, I want to buy well so that I can sell well in about 10 years does anybody know what I should offer? Is 10% below the asking price a sensible offer?
 
Well all I know is that I have a property on that website (bit smaller than your requirements so wouldn't be on your radar), and I have dropped the price from 21.9M HUF to 18.9 HUF since putting it up for sale in the last 4 months. still no interest, so I think you are well within your rights to bid at figures 10% below the asking.
BTW, I bought in 2004 for 20M, so facing a significant loss, when taking in stamp duty, fees etc. As far as I am concerned, I am taking it on the chin and treating it as ultimatelyt a valuable learning experience for my future investment decisions. (Research meticulously, never buy because everyone else is doing it, and know that you cannot take every opportunity that becomes available, and local if possible!)

Just note that property is not a one-way bet, particularly if you do not know the area that well, have language differences and are unable to particularly trust the service providers to manage your property effectively.
For the money you are talking about, you might be better advised to stick into 2-3 managed funds?

Didn't mean to preach.....just want to make sure you are going in with your eyes open:)
 
Research is key, I spent 2 years reseaching my purchase.

Consumer confidence is at a turning point - passed a long term low of 2006, EMU convergence plan is having an effect and although the next year will be tough, the people can see beyond the short term pain.

Im expecting 2008 to be better than expected (gloomy forcast) and 2009 to be a good year, if the Hungarian Government sticks to the convergence plan - keep on track for the EMU entry 2012.

It is a good time to buy in Hungary, - buy at the bottom and all that, its a minimum 5 yr hold though - and if you are going to buy - buy into a development that will take a long time to complete (keep the final payment in an high interest account). My apartment wont be finished Until December 2008. Oh and make sure you buy in Euros to protect yourself against the crazy HUF.

I can see interest rates going up to 7%+ in the UK - whereas I think EURO interest rates dont have that much more to go up, thus the value of the £ will increase against the Euro, always nice to make a little on the final payment currency exchange although im certainly not relying on it. Timing is key - so what i have done is open a US dollar and Euro account (both free) along side my current account (Barclays) - when the exchange rate looks sweet - i'll do the transfer.
 
amgd28's post should be in a Lessons Learned section - its a pity the lessons are so expensive
C
 
fender. you should be looking first on the price / m2 this is the key in budapest, today market a renoavted apartment in the 5th district should cost 350,000 - 450,000 ft / m2 (depands on location) and 10% - 25% less in the 6th and 7th.
you should offer a price significantly lower then the asking price , do not hesitate to ask for 20% reduction, bear in mind that the hungarian seller is not a good party for negotiation (-: but if you offer low you have the chance to get reduction.
check the market well look on the web site of www.oc.hu (otthon centrum), [broken link removed], www.a1realestate.com etc' check prices in similar location and good luck.
 
Fender, you obviously do not rate Gozsdu/Hollo as a very good deal then. That is where we have bought and due to close in a couple of months. We paid 650000 HUF per m2 and actually did a lot of research and took local advice.

Essentially, we thought it was worth paying for a good location.

Everything else remains to be seen.
 
You must log in or register to reply here.
Back
Top