Budapest, Hungary Property Investment

With Hungary s accession in to the EU in May of 2004 supported by further liberalisation, Budapest is on its way to becoming one of the biggest economic engines of Eastern Europe. With its architectural beauty and financial growth, it has become an ideal location for Investors.

Investment Fundamentals/Fact Sheet

• Budapest residential property is currently trading at more then 50%+
  discount when compared to other European capital cities
• Budapest is not a holiday market like the Mediterranean coast -
  long-term tenants include foreign employees, foreign students and
  Hungarian business people. There is constant rental demand for well
  located, renovated Western style apartments
• The purchase process is fairly simple. The land registry system and
  the legal apparatus provide a secure framework. Although not required by
  law, most private investors choose to establish a company in order to
  buy an apartment, because it makes the purchase quicker and leaves more
  room for further investments or tax planning.
• Annual Yields of between 6 to 9% can be achieved on residential
  apartments
• Annual capital gains for residential property are forecast at +15%
  depending on the location and the size of the property
• Corporate tax is 18% with further tax and financial investments
  available to international corporations seeking to establish in Hungary
• Hungary is on track for EU accession in May 2004. EU accession will
  bring lower mortgage interest rates as well as ease of receiving loans
• Mortgages, though available, are harder to obtain then in EU
  countries after accession this shall change, fuelling demand for real
  estate at all price points. Presently it is almost impossible for
  foreigners to obtain housing loans in Hungary.
• EU accession shall increase EU funding for infrastructure
  development. The capital has a fairly advanced public transport system
  and infrastructure.
• The economic fundamentals exist for the continued strong performance
  of the Hungarian economy over the next 3-5 years. This performance
  should see property prices gradually move toward the levels of other
  major European cities.
• Cheques are not accepted in Hungary, so you must give a week to two
  weeks for money to arrive by bank transfer. A down payment of around
  10pc will be paid in cash/bank transfer.
• Proof of the buyer s identity is required as a result the a
  notarised copy of your passport will be required to sign the
  sales-purchase agreement