Best apartments for investment in Budapest
The popularity of renting apartments in Budapest remains unbroken throughout 2018 as well. The demand for apartments for rent is ever increasing which makes it a highly profitable activity to invest and let an apartment. Besides the great investing potential there also lies a risk in investment. Therefor it is important to keep certain aspects in mind and be at the right place at the right time to do a business which yields on a long-term.
Find answers to your questions
When investing into an apartment it is inevitable to think through the possibilities and decide on a goal. Do I want to let this apartment on short-term or long-term? Who I want to let it to? Do I know how long it takes to pay off? Should I increase the values of the apartment?
Generally letting an apartment for a long-term is the safest way to earn money. This way you spend less time with searching for tenants and the apartment starts to pay off sooner. If you decide on letting it for short-term, it means you are making a living from tourism. Calculate with the costs of cleaning between tourists moving out and in and the fee of the service you will use to find new guest regularly. Alternatively, you can also do this yourself.
An apartment usually pays off after 14-18 years. Calculate with 10 months’ worth of profit in each year because of the fee of the estate-agent and lawyer, the costs of upkeep, and a certain amount of deterioration each year which is inherent to the letting.
After buying it is easy to increase the value of an apartment by refurbishing, buying furniture, dividing the rooms etc. Adapt to the layout and your previously set goals (to whom, for how long) and you can quickly multiply the value of your apartment.
If you already have an answer for these questions above, you are ready to invest.
Your target tenants – Students before all
In case of apartments in Budapest it is crucial to take into account the localization. Apartments are on sale in each district but the prices and values naturally differ. To know which part of the city suits your needs the best a little research might be needed. Consider who wants to rent apartments and what their needs are.
There are families, single men and women, couples and there are students. Students make the majority of the demand for apartments for rent. The preferences of students from Hungary and students from abroad differ. Generally, it can be said that students prefer living near the university they attend to. In Budapest most universities are located in the city-center which includes districts V, VI, VII, VIII and IX. These are also ideal places for entertainment and night-life. It is also important to take into account the availability of public transport lines. Students enjoy having their own rooms for it helps in time-management and fulfills the need for privacy. The price of those apartments in Budapest which fit to all these ideas tend to attract more students from abroad then from inland because of their pricing.
Where exactly are the best apartments?
Aside to accustoming to the needs of future tenants it is a good idea to know the neighborhood. Walk around the streets before buying to know how loud the party gets in the evening and to see if parks, convenient stores or bus-stops are close enough. The overall state of the house the apartment is in could also make a difference. Ask if there is a renovation fund to know what to expect in upcoming years.
Do a little research on the development of the city to see which parts are going to be popular in the upcoming years. The forming of a pedestrians only street or the decrease of traffic in a certain street can make a great impact on the price value of an apartment nearby. For example, in Budapest district VIII has gone through a major change in the last decade making it a modern, fashionable place to live. It has a bustling night-life, the huge Corvin Mall, libraries and museums. All three subway lines cross this district making it a stirring junction. Apartments here are worth a lot more now than a few years before.
District V was and is still a good choice for investing in apartments. Right in the middle of Budapest it has everything one could need. Starting with the beautiful sight of Danube from the Danube promenade along the popular, sophisticated shopping street, Váczi utca to the central junction of the city, Deák Ferenc tér, both modern and historical parts of the city can be found in district V. It provides everything we could wish for when browsing apartments in Budapest.
Let’s get started!
All in all, investing comes with some natural risk, but it is a very effective way to make a profit. Be sure to think through what exactly you would like to achieve, where and how much time you are willing to devote to it. When profit starts accumulating, you will be more than satisfied to see your apartment accomplishing the goal you have set.