Real Estate Investment in Budapest - a case study with true yield calculations. Full post on website
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- čas přidán 30. 07. 2024
- 📌 Full article: thewanderinginvestor.com/inte...
Budapest is among the prettiest cities in Europe, but is it a good real estate investment destination? It's a market I know well, having done deals here for a number of years. We'll have a look at the following in the full article which can be found here: thewanderinginvestor.com/inte...
- The economic outlook in Hungary
- The real estate investment market in Budapest, Hungary
- Which neighbourhoods to focus on
- Concrete examples of apartments and their precise yield calculations
- Taxes and legal aspects of making a real estate investment in Budapest, Hungary
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No part whatsoever of the discussion and presentation is, or should be considered as, investment advice, financial advice, legal advice, or tax advice. Always do proper due diligence and speak to a qualified professional advisor in your jurisdiction. Also, be advised that Ladislas Maurice and The Wandering Investor staff may own real estate or investments in the specific markets or opportunities that are discussed. The Wandering Investor may also have marketing agreements in place with certain opportunities that are mentioned.
Great video, very realistic about the ROI and the realestate market in Budapest. Thank you
Great video thanks Ladislas ! Keep up the work
Excellent info, subbed and will be reading your site.
Thank you for the great review!
Really honest and good analysis
Great work
Thank you.....
Amazing video! I've been doing a lot of research into Budapest and hope to buy a property there this summer. I'll definitely be bookmarking this!
Thank you ☺️ Feel free to get in touch with Benedek anytime
Stay away
I have been living here for five years now the City is empty prices and rents are falling
@@thomasvogelsinger4007 What do you mean 'empty'?
Too many empty flats on the market
Hi, thanks for the video. Very usefull informations.
Question: Me as EU citizen, do I need a foreigners purchase license? As this takes as I read 2-3 months to get.
If not , does it mean I can purchase apartment straight and dont neet to wait 2-3 months for license?
Thank you.
No need for EU people. You can purchase as easily as a Hungarian.
Like those conservative + detailed ROI rental breakdowns. Was getting 6% net in 2019 (renting long term to locals, not airbnb, including property manager) in Budapest before selling it. Similar size, a little better condition, all-in cost was 5-10 cheaper. Surprised to see it's now at 2.8% net. IMO might be a bit too pessimistic. Was also surprised that the Manager missed out some obvious optimisations that can be done to this flat which would disproportionately boost rental yield.
Thanks. We wanted to be conservative with the numbers. Benedek can definitely find better deals when hired to do so.
Well done on selling in 2019, you sold at peak!
any things u recommend doing now? since u did that in budapest?
Cool vid! Please louder volume so I can comfortably control it on my PC. Currently need to max out volume to be able make out the words. Thanks!
Point taken. I have better equipment now 👍
@@TheWanderingInvestor Looking forward for more excellent content.
If my daughter will start studying in Budapest for 6 years is it better to buy or rent a one bedroom flat what is your opinion
Hi Demir. Average yearly gross yield of 5% which she'll pay for 6 years = 30% of an apartment paid for instead of wasting it on rent. Get in touch with Benedek, he could find something interesting for you, and then manage it during the Summers in between semesters.
@@TheWanderingInvestor many thanks. Can I have his email. Many thanks for your kind help.
@@demirkerimiro thewanderinginvestor.com/services/international-real-estate-services/a-buyers-agent-in-budapest-and-renovation-manager/ his details are here
@@TheWanderingInvestor Would it not be more accurate to apply the net yield figure here? So if we ignore appreciation (as we know Budapest market is already very inflated) - the effective return is just 2.8% pa - which is even lower than HUF inflation. Thus real return is negative :) IMO it's obviously better to rent in Budapest, and deploy capital in a higher ROI market.
@@jasonw0306 I agree if you want yields. At this stage rental yields are horrific due to the closed borders, but property prices have also taken a hit so it’s become a low yield / but good value play for top notch historical real estate.
It has a place in some portfolios, especially for its long term outlook.
In Demir’s case, it makes even more sense. Long term investment with no money lost on rent for a few years.
How to contact u on buying property in turkey
Wow this is a rather low ROI figure. Is this only because of Covid and too many Short-Term-Rentals going into the Long-Term-Rental market? What would the normal ROI be?
This is the normal ROI on a normal place. Benedek can find a bit higher, maybe 6%-7% gross by doing a combination of student rentals during the year and airbnb in Summer.
Anyone promising you more in normal long term lets is just trying to sell you an apartment and will then disappear.
Stay away the city is empty prices and rents are falling
Way too expensive, that apartment value is no more than 60K instead of 135K. I bought a 90m^2 apartment in Den Hague Netherlands for 110K in 2015, renting brings 1250 euro / month currently. And you don't pay tax on income from renting in Netherlands.
€60k? 😅
@@TheWanderingInvestor You might find me crazy which is ok. In Netherlands rule of thumb to be profitabel is that in 10 years the amount of rent paid should be equal to the purchasing price. So if you can get 8K / year in rent before costs, you should not pay more than 80K to buy. I'm currently living near Mohacs, paid 17K last year for a farmhouse. I grow my own vegetables, have some chicken, and all is paid by the profit of the apartment I have for rent in Den Hague. With your example in Boedapest the profit would be way too low for that.
@@rolandleusdenI don’t disagree with anything you’re saying, just your evaluation of the apartment value is off.
Agreed. Seems Budapest has a real estate bubble as well, and lots of people want to cash in on it. I also dont think the numbers add up - the realtor says you would need up to 6,9k today to renovate just the bathroom - and in the calculation maintenance is just 720 / year. In 5 years, you can throw out that old kitchen as well, and lots of other things to fix that come up in every apartment...Doesn't make sense. At that high price, you'll probably break even...
yield is almost as low as in western markets lol
I live in Budapest
The city is empty
Prices are falling
Stay away
Way too much supply on the market
Both really i used to rent a place for 400 euros two years ago now i can find a similar place in a similar flat in a similar location for 250 euros
Should pick up after this imaginary covid bollocks has made enough money for the politicians & pharmaceutical companies alike.
@@thomasvogelsinger4007 thanks for this comment. In my opinion the starting price of a 2k per m2 for an old apartment is extremely high for eastern europe. In my opinion you should not pay more than 1k per m2 for a used flat.