If you’re thinking of living in Budapest for a while, it may be wise to buy a property. While purchasing a property in Hungary is usually frowned upon by many, it is actually one of the best ways to make some extra money if you invest well. If you’re a foreigner, here’s a few things you might want to know before buying a property in Budapest.
You can either buy property individually or set up a company and pay a flat-fee to the Budapest Real Estate Commission. Setting up a company involves some initial costs and the whole process can take four to six weeks. It is important to remember that buying a property in Budapest is freehold, so you will be added to the title deed as a foreigner. The fees for accountants and lawyers can run into the thousands of dollars, so it’s best to consult with an accountant if you are buying a flat in the city.
Classic apartments in Budapest are generally larger than new developments and feature high ceilings. Unlike new developments, classic apartments often require renovation work. The price of classic apartments in Budapest is usually significantly lower than that of newer developments, but they still come with the advantages of a period building. Additionally, they usually come with parking permits. The downside is that you might not have a parking space, but you can always use the public parking to park your car.
Regardless of the price, you can still enjoy the benefits of buying property in Budapest, even if you don’t live there full time. Renting a property in the city is much cheaper than buying one. If you’re looking to stay in Budapest for an extended period of time, a rental apartment in a neighbourhood where you’ll be spending more time is the way to go.
For foreign investors, buying a property in Budapest can be a good investment. Compared to other Central European countries, property prices in Budapest are cheaper and therefore, can generate higher yields which are attractive to international investors. If you’re interested in buying a piece of property in the city, you should consider investing in a residential area. Aside from a home in Budapest, the property in this region will have a high demand for rentals.
Buying property in Budapest is a great way to invest in real estate in a city with a thriving student population. In addition to the many universities and other institutions in Budapest, it also boasts a vibrant nightlife scene. You can find affordable rental properties in the city, which is ideal for students. Likewise, buying a property in the capital city can be a lucrative second income. This can also be a good way to earn extra passive rental income.
In Hungary, a permit is required to buy a property, if you’re not an EU national. However, to acquire a permit isn’t a big deal; it is just time-consuming to go through all the bureaucratic procedures. You can have a lawyer to assist you to undergo the process as an individual investor, or you can also establish a Hungarian company to purchase a home. If you choose the latter, it is just in a matter of days and you can write off any costs. Then, you’ll need to have a permit issued by the relevant administrative office, which will take anywhere from two to three months.
You can look at various types of properties in the city, such as a penthouse or a family home. If you’re an investor, you might want to consider purchasing an apartment in the city centre. This way, you can rent it out or sell it in the future if you’re not using it for a long time. In general, if you’re a first-time buyer, you’ll need to pay a 10% deposit to secure your new home.