Those who bought apartments in Hungary in time could realize a huge profit
A lot of people could feel the upswing of the real estate market personally last year: tenants have to pay more rent, but those who bought the right estates at the right time could earn fortunes on their deals.
Short-term rents gained popularity thanks to the social networks, but a lot of people were also disappointed with the new model. So, who could realize the greatest profit from last year's trends?
Skyrocketing rental prices
Besides the ever growing real estate prices 2015 was about rental prices going through the roof. In one year from the beginning of 2014 and 2015 some areas experienced and 80 percent increase in fees. The increase was greatest in areas that offered the most jobs like Budapest, Tatabánya or Győr.
A lot of people chose to rent their apartments short-term through online social services like Airbnb. This of course impacted the market as supply narrowed and therefore prices increased further. Supply was however somewhat broadened by the great number of buyers being investors drawn to the market by the strengthening market.
Is it worth to buy for investment purposes?
Those who are considering buying apartments just to rent them out short-term to tourists should consider a number of factors to be sure they put their money in the right place. Income heavily depends on the number of months in which you manage to attract tenants. You also have to pay fees and taxes, count in amortization and so on.
The real winners were those who bought flats with a purpose to rent them out around March 2014: counting the national average they could easily get 15-20% profit on their investment thanks to the increasing prices.
