What yield can you expect if you invest in a flat?

Otthon Centrum real estate franchise network published some interesting data, with the help of which we can estimate what yield can be counted on with different types of flats.

According to their data, if you invest in buying a rented, used brick flat in the capital, your yield will be around 6-7 percent. However if we look at the hot rental market of rural towns, numbers are somewhat higher, going up to 8% yield.

When calculating yield, Otthon Centrum assumed that flats are rented for 10 years, for 11 months each year. In 10 years, the price of a flat – besides inflation – increases 19 percent. The rental fee has been reduced by all the expenses.

Under these conditions used brick flats in Budapest give a 5.23% average yield, at least in the inner districts. In Újlipótváros, located in the 13th district of the capital yield is 6.47%, and in the inner part of Buda it is 6.23%.

In central areas of rural towns yield is considerably higher: in Győr it is 8.4%, 6.8% in Debrecen, 8.35% in Sopron and 7.12 in Kecskemét – calculated for used brick estates.

On the market of panel estates the highest yield can be expected in Győr, at the urban housing estate of Malactelep with 8.66 percent. In the inner city of Kecskemét yield is 7.39 percent, while in the 14th district of Budapest, Zugló 7.25 can be achieved.

(Source: http://www.vg.hu/vallalatok/ingatlan/ennyi-a-hozam-a-befektetesi-cellal-vasarolt-lakasokon-452586)