Real Estate Development near Budapest. Please advise.
Hi. So I was in Budapest just last month. Loved the Public Transportation, the Architecture, The cleanliness and the city in general. So my Hungarian associate sent me a proposal with regards to building a Residential Apartment complex.
Got any insights on the Hungarian Real Estate Market? Gonna visit next month again to do some research. |
Re: Real Estate Development near Budapest. Please advise.
Are you being invited to fund a development?
Budapest prices have risen substantially in the last couple of years - obviously that situation will not last for ever. We have a general election next year. |
Re: Real Estate Development near Budapest. Please advise.
Even in rural parts prices seem to be rising. Some of the prices for Tanyas round our village have made me stop and wonder. IN the last few years prices in and around Budapest have shot up considerably and this is quite probably unsustainable for the obvious reason wages haven't really gone up in the same way.
I would still be dubious about property as an investment in Hungary. |
Re: Real Estate Development near Budapest. Please advise.
Originally Posted by The Developer
(Post 12403941)
Got any insights on the Hungarian Real Estate Market?
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Re: Real Estate Development near Budapest. Please advise.
Originally Posted by Expatrick
(Post 12406447)
Are you being invited to fund a development?
Budapest prices have risen substantially in the last couple of years - obviously that situation will not last for ever. We have a general election next year. So there’s 2 ways to get started. The first would be to buy foreclosures from auction, renovate a little and sell. The second would be, which I currently do in my home country, to build small residential accommodations. So my Hungarian associate insists on the second route but the problem with that is A) There isn’t really a lot low investment options for building small accommodations. For example, the least expensive option offered to me by my Hungarian associate was a small residential complex a little farther from Budapest (15-20 mind by underground) was around $400k-$500k. Sure you could get financing after investing the first $200k but that’s still a lot of risk and a lot investment. B) Shortage of labour. I was looking at an investment of around a hundred thousand dollars with relatively low risk. At least until I know the market personally. But that is not to say I’m not interested in the second option at all. So let me know what you think. |
Re: Real Estate Development near Budapest. Please advise.
Originally Posted by jetsam1
(Post 12406655)
Even in rural parts prices seem to be rising. Some of the prices for Tanyas round our village have made me stop and wonder. IN the last few years prices in and around Budapest have shot up considerably and this is quite probably unsustainable for the obvious reason wages haven't really gone up in the same way.
I would still be dubious about property as an investment in Hungary. |
Re: Real Estate Development near Budapest. Please advise.
Originally Posted by Watchpost
(Post 12406787)
Yes. Leave it to the professionals. Seriously.
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Re: Real Estate Development near Budapest. Please advise.
Originally Posted by The Developer
(Post 12406804)
Yes. So I’m a Real Estate Developer already and I was looking to expand my business overseas. Hungary made most sense considering I already have an associate there, relatively easy visa rules and lower taxes. Also proximity to my country of origin.
So there’s 2 ways to get started. The first would be to buy foreclosures from auction, renovate a little and sell. The second would be, which I currently do in my home country, to build small residential accommodations. So my Hungarian associate insists on the second route but the problem with that is A) There isn’t really a lot low investment options for building small accommodations. For example, the least expensive option offered to me by my Hungarian associate was a small residential complex a little farther from Budapest (15-20 mind by underground) was around $400k-$500k. Sure you could get financing after investing the first $200k but that’s still a lot of risk and a lot investment. B) Shortage of labour. I was looking at an investment of around a hundred thousand dollars with relatively low risk. At least until I know the market personally. But that is not to say I’m not interested in the second option at all. So let me know what you think. As regards the scheme you mention you said 15-20 mins by underground. Did you mean underground (as in Metro) or suburban train (HEV), could make a difference in terms of the suitability of location. Any way, as you say, that sounds like an ambitious project, with considerable risk! I don't know if this is valid but I have a hunch that you might consider renovating houses within the city. For example I live in District 2 in Buda and if I were to walk around for an hour or 2 I reckon I could identify several houses that need renovation & / or conversion that you might acquire at a reasonable price. Having said that I am sure your Hungarian associate knows more about this than I do. Final note, as already suggested, don't count on the housing boom continuing, I have a feeling you might have missed the boat on this one. |
Re: Real Estate Development near Budapest. Please advise.
Good luck to you if you want to try this, personally I would not invest a single cent in Hungarian property.
As has been said many many times here before Hungary is somewhere to commit to living - it is not an investment. |
Re: Real Estate Development near Budapest. Please advise.
Originally Posted by duztee
(Post 12406920)
Good luck to you if you want to try this, personally I would not invest a single cent in Hungarian property.
As has been said many many times here before Hungary is somewhere to commit to living - it is not an investment. |
Re: Real Estate Development near Budapest. Please advise.
Originally Posted by FenTiger
(Post 12407304)
I 110% agree with Duztee. To be honest I don't feel comfortable you have asked Brits who have lived in or known Hungary for much longer than yourself about investing and profiting from property development. I personally think you should do research outside this forum. What are we ourselves going to gain from any profits you make? Zilch!
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Re: Real Estate Development near Budapest. Please advise.
Originally Posted by Expatrick
(Post 12407310)
The bottom line here is not so much his "profit" but the likelihood of his entering into a disastrous arrangement.
Another point to make is that the Hungarian legal system for civil issues is IMO not fit for purpose. Even simple cases can take years and even if you win then costs are often only partially awarded if at all. |
Re: Real Estate Development near Budapest. Please advise.
When potentially The Developer could come back here, upset that it was the advice / suggestions gained here that persuaded him(her) to enter the deal in the first place. |
Re: Real Estate Development near Budapest. Please advise.
The Developer has asked advice from non-professionals (us), what he does with it is entirely his (her) choice!
I don't have a problem with anyone asking anything as long as they in turn accept that all they are getting is our individual and personal opinions. |
Re: Real Estate Development near Budapest. Please advise.
Originally Posted by duztee
(Post 12407415)
The Developer has asked advice from non-professionals (us), what he does with it is entirely his (her) choice!
I don't have a problem with anyone asking anything as long as they in turn accept that all they are getting is our individual and personal opinions. |
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