I think its fair to say that those who invested in Hungary should have taken the longterm view of their investments. The get rich quick mentality prevaded and look at what a mess it has led to.
Thank god that I listened to my 'spidey senses' 6 month ago and didn't leap. It's a long hard road ahead to recovery but I think that I'll reconsider in a few years closer to the now acknowledged Euro adoption date of 2014.
As a hungarian investor i agree completely. I purchased in Dec '04/Jan 05; and I had a few quid to spare so did the research and decided to give it a blast. 'Buy small and Buy central' is the lay-mans motto for investments abroad, so I bought a 1-bed in district 6. (It's hardly the Palais de Versailles, but a big leap for me, barely 12 months into my own mortgage at home in Dublin).
my point, is that I've not met one speculator in the hungarian market in the past 18months. There have been fools, lots of them, buying large apartments, in a weak rental market, 20 miles outside town (slight exaggeration).
Even my EA advised that it was a medium-term outlook (the only honest agent in town? perhaps. I found them v.v.helpful, and happily recommend them). However, I'm no longer recommending property in Hungary. Like Ancutza, my brother was interested about 6 months ago, and the figures he was given by (a well known) agent were just unbelievable! I even called and asked for the research that back them up!
If you're not already in the boat, I'd say wait. If the money is burning a hole, then blow it on a 3-series like everyone else
oh, and if you are releaseing equity to pay for it, then i'd be very skeptical, as there might be a small adjustment in the irish market, as it draws breath for the first time in a decade.