dave1982

Hi all,
Have so far sat on the fence and read many topics of interest regarding Hungary in this Forum. Am now taking the plunge and hopefully will participate in the discussions.

My partner and I want to purchase a property in Hungary but are unsure about the recent changes regarding purchase by foreigners. How the different property types and their locations restrict the availability to foreigners.
I did see one of the threads mentioning something but cannot for the sake of me find it again.

Could anyone point me in the right direction please. If their are any useful sites that I may find any further info on.

Thanks in anticipation

Peter_in_Hungary

The new legislation is regarding agricultural property and land. If you are looking to buy residential property then there is no restriction.

The new legislation is not yet finalised but will come into force next year and will allow foreigners to buy land subject to conditions that will also apply to Hungarians.

Currently foreigners can not buy agricultural property or land.

Rural Hungary

Ditto above

dave1982

does this mean if i wanted to buy a small cottage in the balaton hills with a small plot withgrapes on it I could or couldnt. I'm not that clear on what a zart kert property is . Whether different rules for a nyaralo or a family home?

Rural Hungary

Currently foreigners can only buy property within the "village area" meaning Zartkerts (enclosed gardens) and nyarolas can not be purchased. Family houses can as these are typically in the village area.

dave1982

From wha tI have read and heard.The Balaton area has in the past had a high German ownership of Villas and who now seem to be selling up since the credit crunch. Many of these have been on the hills surrounding the lake and not in villages. Under foreign ownership but no longer for sale to foreigners?

The reason I would be grateful for as much info regarding this topic is, I'm of Hungarian parentage and could apply for dual nationality which may open up more opportunities in purchasing the right property in an area suitable for renting out initially.

As I'm not of retiring age yet I would want to purchase in view of renting out as a holiday home initially. I would hope to move over to Hungary eventually.

Has anyone any views on this or expearience which they could pass on to me in this regard. any help would be much appreciated.

Rural Hungary

There was a period of time, around 1994 when foreigners could buy such properties but not anymore. Not all houses in the hills fall outwith the village plan, it depends on the classification of the property.
The regulations will change in 2014 though, as yet, nobody is sure what the changes will be so probably best waiting to see how the land lies then.

John Gilbert

If you are entitled to take up Hungarian citizenship, in my view you would be mad not to go through the process. It won't be that hard.

There are many houses on the hills above villages that have the fine views while still being within walking distance of the centre. They are often defined as agricultural & therefore foreigners can't buy. This holds down the price but puts them out of the reach of anyone who hasn't got Hungarian citizenship. The law is due to change in Jan 2014 but no-one can accurately predict to what!

dave1982

I'm very grateful for all the replies. Thank you all.

We shall be over in the Balaton region this coming July. My partner Helen is under the impression we will easily purchase a property in the two weeks we are there. I don't want to rush things although I have been wanting to buy for the last 7 yrs but have not been able to afford to.

I am aware that the market is slow over there and am always thinking there is a better and more suitable property round the corner. I need to get it right first time as I don't think it would be easy to sell up and then choose a better property more appropriate for our changing circumstances (ie holidays now retirement later)

I have become a keen DIY 'er (although my skills were initially developed through necessity rather than interest). So I would hope to improve the property as and when I could afford to.

I have put things in motion regarding citizenship as far as looking at the requirements and documentation for the application but my conversational Hungarian and comprehension is not adequate enough for the more complicated language used on official forms. so finding it a bit difficult.

I'm finding it difficult to keep myself in check regarding all the questions I would like to ask on this forum as I'm getting really excited at the prospect of eventually owning a little bit of a beautiful country.

Has anyone had any positive experiences regarding employment prospects, or are things as bad there as they are in Britain?

Rural Hungary

A risk though as if the 20km regulation is passed, makes them nigh on impossible to sell in the future.

duztee

Dave, you will probably never find the 'perfect' house even if you look for another 7 years!
Choose the location you can be sure of being content to live in, then find the house which is closest to your ideal.
It's much easier to make changes to a property than try to move it!

dave1982

Duztee,

I have seen limitations quoted that read 3% of plot size allowed to build. or extend. Not sure whether this is applicable for a family home. Becehegy area looking down onto the lake has even disallowed splitting a plot into 2 smaller plots. These are just examples i have come across ,but suspect these rules apply to particular areas or even in national park areas.

Peter_in_Hungary

Dave The location of the house in important, you can't change that, anything else can be altered/rebuilt.
Its easy to buy a house in a 2 week trip, the difficult bit is buying the right house in two weeks!!
Don't forget that the house that can be successfully rented as a holiday let is not necessarily the house that you would want to live in permanently. Also its not easy renting from 1200 miles distant and agents fees and paid for maintenance will eat up much of the profit. The holiday season around the Balaton is short, a bit in June, July and August and everything stops on Aug. 31st. Maybe New Year and Easter, but these need heating.

Employment is as difficult here as the UK. If you are having trouble with the language on the Hungarian Nationality forms, if you are near the embassy, (otherwise take a day trip?), why not drop in and ask them in your best Hungarian for help or if they have a translation.

Whilst the new land laws regarding purchase are not final, what is certain (as it can be) is that there will be a restriction of purchasing agricultural properties to those who live within 20km of the property to be purchased. In 2014 Hungary must let foreigners buy land (EU regs) but as Hungary does not want its countryside owned by foreigners it will put a restriction that applies to all, (including Hungarians) that will only allow the purchase of land to those living locally (within 20km) on the basis that to farm land you need to be near the land in question, they do not want absentee landlords of any nationality. In order to be classed as local it is proposed that you will need to have lived in the area for 3 years, this will apply to everyone. (to comply with EU regs).
So if you find that wonderful house that is defined as an agricultural property you as a Hungarian citizen can buy it today, and next year any EU citizen can buy it providing they are classed as local i.e. lived in the area for 3 years. In addition the authorities are talking about having 'land committees' in each area that will consist of between 3 -7 local farmers who will have the ability to veto the purchase of any agricultural plot. (and my instant cynical thought was will they also publish a guideline as to the amount of bribe needed to ensure the veto is not applied.)

With regard to the %age of the plot that can be built on, if its agricultural then (unlike the UK) you can build on it providing it is of a certain size, depending upon its classification e.g. 20ha of arable land, or 5ha pasture or 3ha fruit plantation or 2ha vineyard, gives automatic building permission (the design still has to be approved!) up to a %age that varies with the size of the plot. The %age is designed to give a family house with sufficient out buildings to enable an agricultural enterprise so the %age decreases with the increasing size. For the splitting of plots there is a minimum of 6000m2 plot size for outside village/town boundaries and another minimum size for inside, (but I can't remember what). It would also be possible for a community to further restrict splitting in their local plan. If you are planning to build or extend then you should get the possibilities stated in writing before purchase. I have found that authorities too often give a different answer in writing than given verbally.

Rural Hungary

On properties such as the type you have mentioned, the build area is 3% of the plot size. In the village area, this differs slightly depending on the village and location of the plot but is typically 25-30% of the plot size. One thing to consider if buying for future residence, some of the properties on the hills do not have tarmac roads and are inaccessible by vehicle in the winter, internet, gas, mains water can be an issue.

mawood47

Yes aggre to all aboe problem we have Mains Water and Electricity internet I shall try Pay and Go Pannon for this service as thay are on 3G same as my mobile phone, road,s can be a problem as now still fast in Budapest with all the Garden Work a head but usely when weather good walk up but with crampons and oxegen as we sit 120 meter above the valley