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11. 2nd Sunniest City in Europe.
9. 2nd language is Russian ?????????????
I think you'll find that this is the same with most Eastern Bloc countries, but mostly with those over the age of 35. So, what has that to do with its economic outlook??
Hungary has poor salaries compared to cost of living from property etc. Foreign companies may locate for national markets surrounding it but not international? Anyone buying in Budapest on a loan to value will have a minus net-cashflow to yield.
The three points you make are misleading as Budapest, while statistically having quite a low average salary, is one of the wealthiest cities in Central/Eastern Europe. As I've stated before, general statistics in Budapest are almost always misleading.
Foreign Direct Investment (mainly international companies locating here) per inhabitant is the highest in the region by quite a long way.
It's very possible to get a 7-8% return on your investment in Budapest if you choose your investment correctly. This gives a positive yield, not a negative one.
What are Hungarian interest rates? How has the Hungarian Florint fared against the Euro in the past year?
However, as foreign investors typically either borrow EUR in their home country or CHF/EUR in Hungary, their annual yield is more likely to be positive. CHF mortgages are the most common over here as interest rates are extremely low - around 2%.
There are not many foreign investors in Budapest at the minute. The market is primarily local-based. Even locals borrow mainly in CHF because of high HUF interest rates (7.5% base rate, the highest in EU at the minute as far as I know). It's a risk of course, but day-to-day savings make it worth it.
A monthly payment for a mortgage of €100,000 interest-only, using today's rates, would cost:
CHF (2.69% with IEB): €539.21
HUF (10.34% with IEB): €987.66
Do you have a source for this? If it's true Im SOOO in on this deal!
Hungary is in the continental zone and has a temperate climate. The number of hours of sunshine averages between 1,900 and 2,500 a year.
source:
What effect will the continuing decline in the Hungarian population have on the demand for property in the future?
[broken link removed] Council of Europe report.
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