All costs are known from the start or can be easily estimated. The rental income flows as soon as the property is taken over or a few weeks later.
Strategies
Strategies for your investment.
Budapest is at the same time the Hungarian capital, a business location for numerous international companies, a globally recognized university city and, above all, a magnet for international city tourism. This diversity of target groups means many options for investors - we have compiled the most interesting ones here.
Strategy 01
Student 2 Go.
potential
Over 20,000 international students (with a large share coming from abroad) at almost 40 universities in Budapest are an important economic factor for the city. Rented living space, however, is exceptionally scarce.
Procedure
We are looking for apartments in the university districts that already function as flatshares or are suitable for 3-5 students with minimal adjustments. We concentrate on good B locations in the 7th, 8th and 9th districts.
Finished flatshares mean a higher price per square meter when purchasing. Any increase in value will be correspondingly lower.
Strategy 02
Fix & Rent.
potential
Budapest has an enormous treasure trove of historic buildings, but many of them have not been renovated for decades. The chances are good of finding an apartment in an attractive location whose value can be increased enormously through renovation. But instead of selling it immediately, as would be the case with “Fix & Flip”, you hold the property and realize an excellent rental return for at least 5 years (end of the speculation period).
Procedure
We find properties in need of renovation, make the planning appropriate to the objectives and work with partners who can renovate such old apartments from the ground up and inexpensively. We then take care of the final touches and marketing: whether tourists, students, digital nomads, foreign executives or the film industry - there are many lucrative target groups. Important: We always make sure that an apartment is always attractive to more than one target group.
Because of the lower price per square meter, you can buy larger areas and have significantly more design freedom, for example by dividing it into 2-3 independent apartments. The renovation also resulted in an immediate increase in the value of the property, which will significantly increase the overall return.
The costs of renovation and the time frame can sometimes differ significantly from the initial estimate. The reasons for this are not always within your own sphere of influence. So you have to factor in a lot of buffer - in the budget as well as in the scheduling.
Strategy 03
Store of value.
potential
There are locations in Budapest such as the 5th and 12th districts that are low-yield due to high prices, but at the same time have a high prestige value. Typically, purchases are only made with equity capital, so prices hardly react to the banks' interest rates. Fans of these locations emphasize the high value stability of such investments - and that, if in doubt, you can liquidate your property quite quickly.
Procedure
We work with partners who specialize as brokers or developers in locations such as the 5th district or the Buda side. We pay attention to historic buildings (not new buildings) that are in good condition. Since space is limited, loft conversion projects are also interesting. In the appropriate environment, international buyers pay prices per square meter from 8,000 euros upwards.
Properties close to the center are always in demand if, in addition to the location, the quality of the building is right. Due to the low price level compared to international standards, the value for the sum is astonishing.
Renting in this location will still not bring in significantly more, so a net rental yield will only reach 2-3% with difficulty.
Strategy 04
Co-investment.
potential
Co-investment opens the way to income from real estate in downtown Budapest, even with smaller budgets.
Procedure
This is particularly suitable if a property has already been divided into 2 to 3 independent apartments. As a buyer, you are entered in the land register on a pro rata basis; A separate civil law contract regulates which unit belongs to whom and how costs and income are divided.
You can buy an apartment for just under 100,000 euros, which usually brings in at least 500-600 euros in rent.
The other owners have a right of first refusal if you want to sell your shareholding. This can also be an advantage - e.g. B. if you want to expand your commitment in the long term.
Get to know us for free
Which strategy is right? to them?
Choose your date to get to know each other - free of charge, of course. Communication is in English throughout, including during on-site appointments in Budapest.