Danubio Park

D

daniel_vene

Guest
Hi Guys

I would like to know your opinion regarding the Danubio Park development in Budapest district XIII. I have signed a contract for an apartment of 54sqm for 100000EUR that is 1850EUR sqm which I think is not to high but on top of this there is 20% VAT so 120000EUR 2222 sqm this seems already expensive. I already pay 10% and I have to pay another 10% in July and the rest with a mortgage in 2009. Do you guys think I paid too much for an apartment in Budapest? The Danubio park will rent high enough to cover my mortgage payments?

Thanks for any comments because I would like to get some feedback from other people apart from the developer and the agency because for them everything is always perfect

Thank you
 
Hello Daniel,

There's quite a bit of oversupply in distric XIII for the moment, but if you furnish your apartment in a nice way, it should be not too hard to find a tenant.

If I take an average mortgage (30yrs, 6%) you need to get at least 750€/month (720€ mortgage, 30€ expenses) to turn break-even.
This is quite high for a 54 sqm if you know that the average wage in Hungary is 100,000 HUF (400€) and the rent will not cover the condo fees (easily an extra 150€).

Actually, most locals I know do not like this latest district XIII developments, because this new capitalist blocks remind them of the old commie parks.
(there's of course more luxury, but even less space between the buildings).

[broken link removed]

[broken link removed]

As you can see the area looks quite depressing for the moment - nothing like the catalogue renders where they pictured the buildings in full nature and even next to a kind of blue ocean - the green-grey Danube I suppose...
[broken link removed]

My opinion is that it may be a struggle in the first years to get your expenses covered, but in the long term you've made a good investment.
 
UrbanDev thank you very much for your help !!! now I can have a more realistic view of the market. A diferent view from the one you get from the agency

How much do you think I can get for rent? I have been checking the renting apartment website and it seems from were I could found that the rent in this area is going for around 600EUR. So as you said it will not cover my expences. I hope this changes in not too long time !!!

The apartment is 54sqm+14sqm balcony. maybe with the balcony it feels bigger :)
 
Much will depend on how the riverside part of District XIII will evolve in the years to come, how the Hungarian economy will develop and how the nearby BP office hubs (Váci Corridor etc) will expand.
Considering the rent, project as Danubio are targeting well-earning locals and expats. A lot will depend on the location, lay-out, view and furnishings of your flat.
PS: on the construction site SkyScraperCity you'll be able to follow the project on a regular basis (now the focus is still on Marina Part - but there will be a new thread from the moment the Danubio construction progresses).
http://www.skyscrapercity.com/showthread.php?t=450503
 
If the figures don't stack up in your favour now, I'd be very cautious about your investment. You should be looking for approx. 6-7% return from the outset. If this is not possible, then I would move on. There are a lot of options in Budapest at the minute!
 
budapest said:
If the figures don't stack up in your favour now, I'd be very cautious about your investment. You should be looking for approx. 6-7% return from the outset. If this is not possible, then I would move on. There are a lot of options in Budapest at the minute!
Click to expand...

I suppose Daniel can't get out (or he loses his 10%). But I agree that if he finds (a legal & free) way out, he should get out of this deal.
Due to the difficult economic times in Hungary, BP real estate can be a costly joke for foreigners seduced by glossy brochures and fabulous 3D-renders, but also a golden opportunity for investors 'in the know'.
 
Almost everything with the 3-D rendering and glossy brochures is worth avoiding. I liked your pics UrbanDev showing how this area really looks!

As UrbanDev suggests, daniel_vene, long term prospects for property in Hungary are good. You could potentially get a 6% return/[SIZE=-1]€[/SIZE]600 per month, which is probably the absolute maximum for an apartment like this, even if you furnish to a very high spec (Flat-screen TV, leather furniture and generally high level of interior design). My advice would be to do just this and improve your chances of getting a high quality tenant. Make sure you have an input into what kitchen is fitted as well as tiling choices if possible. It's best to pay a little extra in these areas, if possible.

UrbanDev said:
most locals I know do not like this latest district XIII developments, because this new capitalist blocks remind them of the old commie parks.
(there's of course more luxury, but even less space between the buildings).
Click to expand...

I'm getting this impression more and more from locals too - not just in relation to these blocks in District XIII, but also the Corvin development. It was inevitable that this would happen. And I totally agree. There is not a huge difference in style between some new builds I've seen and the socialist-realist panel housing. The 'desirability' of these major outlying developments is not set in stone, despite the high prices. In my opinion, they are most desirable at an off-plan stage (when the only tangible reference is the agent's brochure) and on a downward slope from there onwards.
 
You must log in or register to reply here.
Back
Top