White Castle Budapest

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focus

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Anyone purchased an apartment in white castle in district 11 from springs international, ( they sell for Homecenter.hu) The cost of the purchase was €62,000 in 2005 and the value today I am told is €55,000 by a sales agent, was going to hold the apartment long term but I need the money for another project I got a shock today when I was told 55K because when I phoned springs international last October they told me the apartments had gone up 38%. anyone else purchased in this apartment block.
 
Hi focus,

In general, standard new builds haven't gone up in value in Budapest. 38% since 2005 for this development is totally inaccurate. In most areas, standard new builds have depreciated slightly according to reports I've read.

This is just my opinion, but if it were my property, I would do the following:

1. Is the property rented? If not, then hire the services of a competent management company and at least get it earning money for you. 6-8% return should be achieveable in theory.

2. Take out a mortgage with a local Hungarian bank.

I get a lot of emails from people who purchased standard new builds or lower quality classic property 2-3 years ago and now want to sell because they haven't appreciated as the owners had hoped. If the apartment is generating a good return (6-8% in Bp), then there is a strong argument for holding on for the long term. There are ways of extracting the capital for future investments.

Best of luck!
 
Hi focus,
also bought a one bedroom apt. in same development in nov.05.You're not doing too bad having purchased for 62,000. I paid 76,000 inc. parking so total cost (agent's fees, solicitor & furnishing) approx. 88,000.I suppose it's one way of getting rid of money.
 
From what ive read, I get the feeling that sentiment is changing now from a negative outlook to a positive outlook. I think this is partly due to the EMU convergence plan - which has so far been successfully implemented; but also because Hungary recently got hold of 30 Billion Euro of EU funding (Jan 07) that they are currently pumping into various projects. Business confidence is up as is investor confidence and if the government manages to stick to the convergence plan over the next few years then I think there is NO doubt that property will take off once more.

I understand that 92% of Hungarians own and live in their own properties, but of those most live in old or damaged or soviet style buildings and would move if they could. Once they adopt the Euro currency the Hungarian people will be able to get credit far more easily - Euro Mortgages at Euro rates instead of the current 8%. The other factor is unemployment of course - although it will get worse next year - before it gets better - due to government tightening - reducing public workforce etc.

I look to the future with optimism - why i recently purchased in hungary - Buy at the bottom once investor confidence is returning. Im looking to at least a 6 year hold, after my investment is completed next year, - I intend to refinance and purchase once more prior to EMU entry.

In conclusion I totally agree with our comrade above "budapest" that you should hold on if you can and let it out; however this is just an opinion - not investor advice.
 
The problem with Budapest is the double pricing for foreigners and locals. I nearly bought in 2005 then saw that the development was being priced to locals in Forints at about 25% less.

Pissed me off the way the country operates with such corruption.
 
Hi Focus

I also purchased in Whitecastle in early 2006. I received my keys and paid full amount in April 2006. Has any one got the final deeds for any appartment in Whitecastle yet. I checked with the deeds office in Budapest and was told that my name appeared in a marginal note with deeds there but that individual deeds had not been established yet.Is this normal over one year after the hand over of the keys.I paid e1500 a sq m, could anyone tell me the current (real )value in an area such as this.
 
Was told last year, approx.May06, that the apt. was worth about 1200 /1300sq.m in that part of distict XI and that parkingwas10,000.This was from an estate agent who had no links to the development.
 
Thanks csmd

I think the 25% over valuation is accurate so. I paid 10000 for parking and about 3000 for storage space. It has rented since so i think i will hang onto it till the Euro comes to Hungary. What a horrible thought than any capital appreciation with the appartment ,would only get me my money back. I also heard all this 38% appreciation talk. The quicker these selling agents get regulated the better. Then what goes around comes around. Lies normally catch up on people.
Nice appartment all the same. I have been told that there is a new building management company appointed to do the maintenance, so this is good as it is important to keep the building well for renting purposes. Overall build quality of the building is good so they should appreciate well once the market recovers.
Budapest is such a lovely city. It's a pity about the slow speed of all the different government departments. They have alot to learn if they are to give the country a chance to progress.
 
DrJohn and focus,

Please familiarise yourself with the posting guidelines and in particular :

aj
 

Drjohn, you need to get a lawyer to check if the developer has submitted the application for the final registration of the condominium, if he did and if the paper work was done properly it is only a matter of time to get the deeds finalized
 
Thanks Lee-m for the advice. I think this is in the process of being done at the moment. Surely there should be a reasonable time limit for developers to complete these requirements.
 
from my knowledge it is not always up to them , sometime the paperwork takes way too long...
 

Hi Dr John,

I am in exactly the same position that you are in. I have paid full amount yet i have not seen the deeds in my name. So tecnically we cannoth seel our apartments if we wanted to. I have been in contact with E in Budapest and B in Dublin. They are useless in Dublin. PM me if you need more advice. - Mine is not rented I'm afraid. Did you get your light fittitngs etc done by home center ?

J
 
My apartment is still vacant, nearly got a tenant last week I was told. The company I am using is flat management. Is anyone else using this comany?
 
Hi Pinchy

I have been told the finalization of the registration of deeds will take place this week after the payment of the inflated Huf 500 per sq mtr maintenance cost backdated to the handover stage. Lets hope that there are no extra surprises. The quicker it is sorted now the better since they are a difficult crew to deal with. I think that they used new regulations that were allowed since the start of 2006 which enabled the builders ( Home Center) to lodge their future intention of registering the seperate appartments , at a later date , with the deeds office in Budapest. I believe that the time limits for doing this are now exceeded. It was not made clear at the time of purchasing that this was going to be the method of registration. In fact nothing at anytime of the whole purchasing process has been transparant. In my opinion the quicker the deeds are sorted out now , the better so that the constant chasing of information can finish. I hope that the lease agreements will run smoothly for this development. I wonder if this is too much to expect?
Word of warning: when the deeds do finally come make sure it is proper and correct ie: seperate deed for appartment, parking space and storage.
Good luck.
 
focus said:
My apartment is still vacant, nearly got a tenant last week I was told. The company I am using is flat management. Is anyone else using this comany?
Click to expand...

See the thread on Home and Office Managing Agents Budapest started by me a couple of weeks ago in this forum. They trade as flat management..as youlll see my experience appears positive so far maybe I just got lucky http://www.askaboutmoney.com/showthread.php?t=57022
 
Hi DrJohn,

Seems we are being told the same story. I paid my maintainence last week. I received a mail yesterday advising that legal team were to process the deeds in my name. I will let you know if I hear any news on that. I have been told by Flat Management Company that my apartment is worth 70 k, I see others have not had that experience. portfolio.hu is a good economy snapshot of Budapest. Thanks also to Focus.
 


The maintenance fee is paid by the owner for the first year and the tenant(if occupied) for the following years??..Is this correct..Pretty certain we paid this maintenace fee when we signed up with Flat Management when they were in Cork as part of the handover process. Still waiting on the deeds though..
 
Hi Eddie,

So thats four of us now who have keys to our apartments but do not legally own them yet. All of us have bought through Springs and Home Center.

I paid my first maintainence fee just last week. Are you in White Castle also.

Does anyone have plan of action before I proceed with legal letter from my Irish Solicitor ? (for my apartment) Do we have any rights or refund even that we are aware of ?
j
 
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