Investing in Budapest as a Ltd Company

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To be fair the site already offers the following disclaimer
 
REPLY

Cindy,
I wonder what your qualification is in this field?? We have received advice from our legal team and our Financial Controller (a qualified Chartered Accountant)has been in contact with the ACCA. We have also been in contact with IFSRA to verify but we are confident as a result of our enquiries that we are fully compliant.

Incidentally, your comments are misplaced. We do not promote the transfer of shares. We have never done so and do not plan to do so in the future.
 
IFSRA

Apart from being responsible for compliance in our firm I'm reasonably expert on the Act, and I have specific guidance from IFSRA on the specific issue of selling property schemes where ownership is through limited companies ie shares. Sorry if that's the wrong answer, but the issue is very black and white. Get it in writing from IFSRA if you want to avoid a heap of grief. Cindy.
 
IFSRA

Cindy, Have today asked for confirmation in writing from IFSRA, are forwarding same. Perhaps the anolomy lies in the fact that if a purchaser did take the decision to buy as a company, that would be a Hungarian entity.

In any event, luckily as laws governing foreigners buying property in Budapest have been relaxed this year, it is often preferable to purchase as an individual. There are other threads I know on this site which discuss the merits of buying as an individual v company.
 
investing in budapest

please help.
tomorrow monday 15th dec.I am to forward a deposit of €9000 for aan appartment I've just bought in Budapest.I travelled out last week and having viewed a number of properties decided to buy.Ibought a 100sq m unitin zone 6 for €90000.Having read all contributions Iam now very nervous to proceed.The company Idealt with is Neumarkt owned by a guy named Josef Katona.Again I have been promised a rental income of €500 / month.Please help with any comments before it,s too late.
Benedine.
 
Re: IFSRA

Please help with any comments before it,s too late.
1) Make sure you are getting independent legal advice.
2) Don't believe promises about rent. Promises about rent from the person selling the property are like promises from any salesperson - take them with a grain of salt. Do your own research.
3) Don't be rushed into anything - Your salesman is going to be thinking 'ABC - Always Be Closing' - he will do/say anything to get your signature on the dotted line. It is the oldest sales trick in the book to say that the offer is time-limited.

How big an investment is this for you? Is it your sole investment or part of an overall portfolio?
 
property purchase

Benedine,

It is impossible to make a comment on the value you are getting (or not) with so few details. On the face of it a reasonably spacious apt in District 13 for Eur90K may not be a bad price but you should consider whether or not the apt needs to be renovated, what floor it is on, street facing etc to really determine the price you should have paid.
I would not be happy that you were "promised" Eur500 per month rental income. It is impossible to guarantee rental income in Budapest at present, it can be quite hit and miss. An agency that tell you otherwise are leading you astray. However you should remain focused on your prime reason for investing there - capital appreciation.

I actually haven't come across the guy you used in Budapest. Does he have Irish connections or where did you find him? Perhaps he came recommended to you by someone who has dealt with him before??

Do you know if the lawyer you met has European Law Society credentials or have you had your contract viewed by a third party solicitor?

I would not be rushed into forwarding the funds if you are not entirely happy. Either way this is a big investment. If you are rushing to meet a contract deadline the chances are that a late penalty fine may kick in, but that shouldn't be too onerous and is probably worth it for peace of mind. I wonder have you made a downpayment by way of holding deposit?

My advice is to check out the agent you used further. He will have been the link to your solicitor etc so it is so important that you know that you can trust him.

Hope this helps. Purchasing in Eastern Europe can and should be pretty straightforward - I have of course a vested interest in that I run my own Irish agency, but I do believe it is the job of the agent you use to give you the peace of mind which you clearly don't have.

If I can be of any further use you can e mail me to my personal e mail at valpower1503@hotmail.com.

Good luck!

Val
 
Re: IFSRA

I am now very nervous to proceed

Lucy, if you are very nervous about any investment, then the obvious course of action is not to proceed with it, and to wait until (1) you have properly informed yourself of the pros and cons of the investment (including getting independent investment and legal advice (2) you find a proposal that you are comfortable with after studying all the implications in detail.