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March 29th, 2015

More Apartments Are Bought as an Investment

​More Apartments Are Bought as an Investment
More and more apartment buyers purchase property as an investment: in Budapest every third buyer and in the country every forth buyer is an investor. According to the data of real estate agency network Duna House investors are likely to buy more than one apartment, partly because of low loan interest rates, and because they can realize a 7-8-percent yield, if they sublet the apartment. In the case of a 50-percent own capital and a 50-percent loan rent can cover monthly repayment.

Examples
As an example, let’s examine the case of a 35-year-old buyer, who has a HUF 300 thousand monthly income, and applies for a loan for 10 years. If he buys a 55-square-meter brick apartment for HUF 16.406 million in the 13th district, he can sublet it for a monthly HUF 109 thousand, which easily covers the cost of a HUF 85.5 thousand monthly payment. Or if he buys a 53-square-meter panel apartment for HUF 9.12 million in the 10th district, he can sublet it for a monthly HUF 63 thousand, and it also easily covers the cost of a HUF 49.5 thousand monthly payment, and he even has some money to save.

It’s Worth Investing in Property
The above examples don’t include the costs of the reconstruction and taxes, and neither took into consideration the possibility the owner can’t sublet his apartment constantly; but it’s clear real estate is a good investment. Moreover, its value grows by the years, thus it can be sold for more later.

Source:

http://www.resourceinfo.hu/hu/cikk/lakas/37280.html

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