Why Students Should Buy Instead of Rent 

Incoming students to Budapest who are looking to find an apartment for the duration of their studies or beyond should consider buying an apartment instead of renting to save money in the long-run if they have the means to finance the upfront cost. Buying an apartment in Budapest is a relatively straightforward process and potential buyers should not be put-off by the procedure. The money that students can save from buying an apartment instead of renting it far outweigh the fees and taxes associated with purchasing a property. For more information on the apartment buying process, refer to our buying and fee guides. 

Students should consider buying an apartment for two primary reasons: 

1) Save Money

In addition to avoiding the hassle of moving apartments, finding the right roommates, dealing with difficult landlords and rising rental costs, buying an apartment can be a cost-effective solution in the long-run. The average cost for a student renting an apartment in Budapest is estimated to be between a conservative 100,000 HUF to a more realistic 200,000 HUF (approx. 300-500 EUR) per month depending on the living arrangement. Below is an outline of the rental cost for students renting a 150,000 HUF apartment over the course of their studies:

Degree DurationRental Cost (150,000 HUF per month) 
Bachelor4 Years 7.2 Mil. HUF (22,000 EUR)
Bachelor + Masters 6 Years 10.8 Mil. HUF (33,000 EUR)

The money spent on renting an apartment will cost a student the equivalent of either all or a large chunk of their student tuition. Furthermore, the money spent on renting could have been put towards a downpayment on an apartment. 

2) Source of Income 

The second main reason that students should buy instead of rent an apartment is because it acts as a reliable source of income through rent payments or a one-off payment if the property is sold for a profit.

Renting: An apartment can be a perfect source of passive income during or even after completing one’s studies. 

Rental yields in Budapest have been increasing in the past decade and are expected to remain strong and consistent in the coming years. With a 5.5% rental yield on their property, apartment owners in Budapest could potentially fully pay-off their initial investment in 18 years from rent alone. Furthermore, students can also consider purchasing a 2 bedroom property and renting one bedroom to provide a continual stream of income during their studies. 

Selling: Property prices in Budapest have been increasing dramatically over the past 10 years. In the last quarter of 2018, Budapest was the city with the fastest growing property prices in the world. Apartment prices, especially in the more sought after areas in central Budapest near the universities, are expected to remain on an upward trajectory in the upcoming years.

Purchasing an apartment now and selling it after students’ complete their studies will not only mean that they save on the cost of rent but would also nearly guarantee a sizeable profit from appreciating property prices.  




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