Research carried out by Mastercard also states that Budapest is 3rd in the world.

[investpest]

The properties I bought and sold in Hungary increased significantly in value, while those I continue to own have increased in value by around 50-60%, even when purchased during a 'flat' market. They continue to offer 7-8% rental returns, as do the majority of quality properties in Budapest. Most international and local analysts would agree that long term prospects are good for HU.

I don't think that this is the issue being discussed here though. I haven't seen much evidence that those foreign investors who purchased a coastal or ski property in Bulgaria since 2006 have experienced any capital appreciation so far and certainly not 32.2% from Q2/2007 - Q2/2008.

As per Budapests original quote about long term prospects, an interesting research carried out by Mastercard also states that Budapest is 3rd out of 65 cities it researched with whom long term prospects are best. The two ahead of Budapest are in China. See link http://www.marketwatch.com/news/sto...7465A4-4A13-4105-801E-B2D8FEEBB8BC}&dist=hppr

 

[ajapale]

Re: house prices fall globally

....research carried out by Mastercard also states that Budapest is 3rd out of 65 cities......

The mastercard "methodology" is as follows:

Methodology
The MasterCard Worldwide Centers of Commerce(TM): Emerging Markets Index is compiled from research by a panel of nine independent economic, urban development and social-science experts from leading academic and research institutions around the world, led by Dr. Michael Goldberg, Program Director, MasterCard Worldwide Centers of Commerce Program.
To form the Index, the panel rigorously identified 65 cities around the world that met their initial stringent criteria. Cities were then rated on eight key dimensions as follows:
-- Economic and Commercial Environment
-- Economic Growth and Development
-- Business Environment
-- Financial Services Environment
-- Commercial Connectivity
-- Education and IT Connectivity
-- Quality of Urban Life
-- Risk and Security

The process entailed measuring a number of carefully weighted, relevant indicators and sub-indicators that aggregate available data relevant to each dimension. The panel evaluated a total of eight dimensions comprised of 65 indicators and 89 sub-indicators to derive an Index score for each city, a process that goes well beyond traditional measures used to gauge worldwide financial and business activity.

Im not sure what the survey tells us about Hungary and Budapest as a Property Investment location.

 

[lemur]

Re: House prices fall globally-Bulgaria, Slovakia, Cyprus & Czech Rep buck trend so f

Guys the liquidation phase has yet to start in Property (it has already run most of its course in shares/commodities). That phase will be the most dramatic in places like Bulgaria, Cyprus where there are little underlying fundamentals to hold the market up.

 

[BudaRich]

Re: House prices fall globally-Bulgaria, Slovakia, Cyprus & Czech Rep buck trend so f

Guys the liquidation phase has yet to start in Property (it has already run most of its course in shares/commodities). That phase will be the most dramatic in places like Bulgaria, Cyprus where there are little underlying fundamentals to hold the market up.

This is one of the primary reasons I purchased in Budapest because of the lack of a speculative bubble.

Hungary just has sooo much going for it, its just a question of when the rest of the world realises it.

Hungary just needs a cohesive marketing strategy and a competent Government.

There are signs that the developers have woken up to the marketing side of things, due to the recent influx of property funds funding developments the international marketing and global exposure is increasing - evidence of which was apparent at the Munich show recently (so i hear).

 

[irish_bob]

Re: house prices fall globally

As per Budapests original quote about long term prospects, an interesting research carried out by Mastercard also states that Budapest is 3rd out of 65 cities it researched with whom long term prospects are best. The two ahead of Budapest are in China. See link http://www.marketwatch.com/news/sto...7465A4-4A13-4105-801E-B2D8FEEBB8BC}&dist=hppr

im very glad to hear that , it will surely mean i will have no trouble selling my appartment in district 7 , ive only had it on the market for a year now

 

[MichaelDes]

Re: House prices fall globally-Bulgaria, Slovakia, Cyprus & Czech Rep buck trend so f

As per Budapests original quote about long term prospects, an interesting research carried out by Mastercard also states that Budapest is 3rd out of 65

This is one of the primary reasons I purchased in Budapest because of the lack of a speculative bubble.

Ajapale - given the poster names is there not a bit of Hungarian ramping going on without any substance. Is there any vested interests going on here??

The reality has been stated in the Observer and any other news media today [Go to Google News]- Iceland has a €2.1bn begging bowl out to the IMF, Ukraine is begging for €16bn as are Hungary. For information

"How Will Hungary Shape Eastern European CDS Prices this Week? - Newsweek"

Hungary is in crisis mode today. While an IMF lifeline is negotiated, credit default swap prices for Hungary sovereign debt are set to fluctuate wildly, from a low of 420 basis points to a high of 600, and beyond. The rest of Eastern Europe waits with bated breath, hoping that Hungary default insurance costs will not follow the path shown by Ukraine (1,900 basis points, 3 years).
The Forint has dropped a whopping 30%-plus against the dollar since June. Hungary's benchmark interest rate has risen by 3% last week. The domestic bond market is virtually frozen. And, as official statistics tell the sorry tale, foreign currency loans make up almost 62% of all Hungarian household debt!
The CDX emerging market credit default swap index rose to 1,100 basis points this week and levels of 1,300 basis points are well within the realm of reality in forthcoming days. If index spreads do widen as anticipated, the impact on East European prices will be devastating.

Why has Fitch and Moodys given a major outlook downgrade for Hungary, the once former shooting star. Who would buy property in a country with economic instability that could be cataclysmic like Iceland??

im very glad to hear that , it will surely mean i will have no trouble selling my appartment in district 7 , ive only had it on the market for a year now

Maybe I'm wrong, probably, because by the looks of it Irish_Bob, you'll have no trouble selling

 

[budapest]

Re: House prices fall globally-Bulgaria, Slovakia, Cyprus & Czech Rep buck trend so f

I've responded in this thread, which deals more specifically with Hungary:
http://www.askaboutmoney.com/showthread.php?t=90110&page=3

 

[ajapale]

Re: House prices fall globally-Bulgaria, Slovakia, Cyprus & Czech Rep buck trend so f

Ajapale - given the poster names is there not a bit of Hungarian ramping going on without any substance. Is there any vested interests going on here?

Hi MichaelDes,
Please use the report post to draw mods attention to specific breaches posting guidelines.

Also bear in mind that some posters in the overseas property section have declared their interest.

Posters who blatanlty puff particular developments and areas will be banned.

aj

 

[ajapale]

Re: House prices fall globally-Bulgaria, Slovakia, Cyprus & Czech Rep buck trend so f

I think you are absolutely bonkers for wanting to sell out of this development, I think Karolyi Gardens (Kings Gardens) apartments are amazing investments. 5 yr goldmine.

BudaRich,

Do you have an interest in the area of overseas property we should know about?

ajapale
(moderator)

 

[investpest]

Re: interesting research carried out by Mastercard also states that Budapest is 3rd

apologies if i appeared to be 'ramping' on about Hungary. I hadnt intended to start a thread, just reply to a comment by someone else. All i was trying to do was make myself feel better (and anyone else who has invested in Budapest) with some sort of positive news.

I can clearly see that this has not gone down well, and obviously Budapest is not a wise investment. Unfortunately, it is too late for me now to change my mind or get out so thank you for all your heartfelt negativity and kind words. Finger crossed, I will be able to sell in 8-10 years as planned.

 

[Catan]

Lets call a spade a spade. The Hungarian economy is in dire straits. BBC are saying the IMF bail-out (not finalised) could be the "one of the biggest the IMF has ever made". No point in trying to gloss over something this big. That said, this should force the Hungarian government to get it's This post will be deleted if not edited to remove bad language in gear, and maybe just maybe in 5 -10 years we'll be looking back at this and saying "close one"! ;-)

 

[irish_bob]

Lets call a spade a spade. The Hungarian economy is in dire straits. BBC are saying the IMF bail-out (not finalised) could be the "one of the biggest the IMF has ever made". No point in trying to gloss over something this big. That said, this should force the Hungarian government to get it's This post will be deleted if not edited to remove bad language in gear, and maybe just maybe in 5 -10 years we'll be looking back at this and saying "close one"! ;-)

good to see some refreshing honesty

 

[budapest]

I've responded in the other thread, as this seems to be going off-topic again:
http://www.askaboutmoney.com/showthread.php?t=90110&page=3

 

[investpest]

Again, I was never trying to gloss over something that is so blatantly obvious, merely trying to find some positives for all those who have invested in Budapest before some people start reaching for sleeping XXXXXXXXXXXXXXXXXXXX, sharp objects and lengths of rope

 

[paddyd]

At the risk of trying to calm things down:

as with a load of other posts on this forum, there is a clear divide here between 3 clashing groups:
1: the speculators who bought a last overseas 4-5 years ago and expected to retire on the back of it in the coming months. Good luck with that.
2. The lads who were fed a line and purchased an expensive place in the past 4-5 years who now want out, cause its getting scarey.
3. The lads who purchased a place in the past 4-5 years as a long term asset

people will never agree on the potential for any of these future growth cities, especially as all the indices are so negative at the moment, and all the above posters have different views, from different groups.

btw, I put myself in group 3. I have no worries at all about hungary. Steady long-term growth is all I'm after. (earning 11.5% on deposits along the way )