Madach Gardens Option to buy

I am a dedicated reader of the site and have read and re-read many of the posts on investing in Budapest. I have been offered the chance to buy a one bed apartment in Madach Gardens Budapest "District V11 100m from Deak Ter where the 5th, 6th, & 7th districts meet " that's from the e-mail I got.

The "owner" has decided not to go ahead with the purchase even though the completion date is Sept'06! and most of the money has been paid over (this worries me a bit, why pull out so late in the process and essientally at a loss?). The price is 104k + costs for a 48.23sqM 3rd floor apt. I'm been told that I would essentially be taking over the purchase contract from the original buyer at the same price they paid in Dec '03.

This seems to be a good oportunity been offered by a person whom I feel is genuine. Could anyone please advise as I have to make a fairly quick decision. Many thanks.

Re: Madach Gardens Option to buy!!!

District iv I think

Click to expand...

Personally, I wouldn't invest any kind of money if I didn't even know where the apartment was located. Maybe I'm overly cautious though

Sherman

Hi sorry I should have read the blurb more
carefully. "The apartment is located in the V11 district city centre 100m from Deak Ter where the 5th, 6th & 7th districts meet" (quote from the e-mail I got)

Re: Madach Gardens Option to buy!!!

Firstly, you don't have to make a quick decision.

Get on a plane, walk around, get a feel for the city, meet someone like Budapest, see what you can get for your money elsewhere then visit this development and see if it still looks viable. This is the absolute minimum level of due diligence you should do. Cost of trip? 500 Euro app., could save you shelling out 100k + on something you really have no solid info on.

Good luck.

Hi
Ive asked my colleague who knows budapest well. This is what he says:

It is centrally located and is on the correct side of the city near the heart
Can't judge on the price without knowing the street, building and layout etc as prices can fluctuate by 100% on the same street
Some buildings have gone thru a quick conversion and are badly planned and these do not fetch high prices or rents
Prices in budapest haven't fluctuated much over the past few years, as they went through a sharp increase then levelled off
Unemployment rates are very low

Hope this helps a bit

Hi kathryn,

Madach Gardens is part of Gozsdu Udvar, which is a renovation project of an old group of buildings in District VII. New build apartments will be constructed as part of the development also. The price of 104,000 and costs is probably around the same as it would cost to buy an apartment there now, as prices of new builds haven't really risen much here in the last couple of years, so I don't think you'd be getting a particularly great deal. It really depends though on where the apartment is within the development. Prices currently range from approx. 1,950 euro to 2,500 euro per square metre for this development. You could ring 003612362222, the number of Autoker, the Gozsdu Udvar agents and ask how much a similar apartment to your friend's would cost now to make a more accurate judgment on it. The development is likely to be one of the nicest in Budapest and should rent well. Have a look at www.gozsduudvar.hu. There will be an internal street which runs through the development, which will have outdoor festivals, art displays, etc.

Prices of quality second hand apartments have risen by around 8-10% per year over the last three years, so don't rule them out either as a possibility. Large one or medium sized 2 bed apartments can be found in the downtown area for around 80,000-100,000 euro. These are likely to become more popular as more and more older buildings are renovated. There is still approx 40% difference between the cost of a new or second hand apartment located side by side on the same street.

Budapest

Hi.Billboo7777

Many thanks for your responses and advice. Bilboo777 The apartment is on the 3rd floor of the fourth building on pedestrianised Madach Way don't know if your colleague might find that useful.

Budapest


Thank you for the info. The 104 price I am quoted is the price paid in 2003?? I have also been advised that these apartments have apprecited 40% over the last three years?? hence my guarded enthusiasm for the price.The agent is from OPI in Maynooth.

Could you clarify . Do you feel I could get better value for money in the second hand market?

Thanks

Hi Kathryn,

If you find out exactly where in the development the apartment is, you could ring the Gozsdu Udvar developers directly at the number above and ask how much a similar apartment would now cost? If the 104k apartment has really risen by 40%, then why don't they sell it at slightly more?

You would get a larger second hand apartment in a more prestigious location for that money but whether that's better value or not really depends on each person's perspective. I prefer older buildings, which have high design and build quality as opposed to the bland new builds, which are usually thrown up in slightly inferior locations. However, I also think that Gozsdu Udvar will be lovely when it's done, if a little overpriced. It stands out from the pack as it's a restoration project rather than a standard new build development.

Budapest

Hi Budapest and all others who have offered advice.

I am off to Budapest in two weeks to have a look around myself. Thanks again for all your advice and tips.
Will let you know how I get on.