When deciding to purchase rental properties abroad, Hungary is one of the best places to choose to invest. With a wide range of attractive marketing devices for investors and a steady real estate market that is beginning to mature under the more stable government and inclusion in the EU, the risks remain low for investors. The current market allows for two thirds of possible real estate avenues to be obtained by foreign investors. In 2011, the agricultural sector will also be available for foreign investors. Coupled with the recent stabilization of the real estate boom, long term investing with high profit margins are appealing to Hungarian property investors

Hungary Property

There are some things to consider as is the case in all real estate markets that may make your rental property investment even more profitable and enjoyable. Most of these are common sense to the investor, but it should be noted that as many investors don’t live in Hungary, an investor may not know the demographic location of the property well. A little research and some advice from trusted agencies who deal with purchasing rental property for sale abroad could make a difference in the amount of return and the rate of return that can be expected in the newly maturing market.

Find out the distance from the city as well as the distance from the main road in relation to the property that is being considered. These can make the property more approachable if they are considered when purchasing rental property for investment. If the property is not in the city limits, consider the methods of irrigation. In all properties, look for and analyze the data on weather conditions, surface conditions, and the steepness of slopes that may make your new investment less approachable. Consider the way the property faces as this can increase and decrease utilities for potential tenants for your rental property investment. And lastly, consider the building and infrastructure. This includes asking about the age, building materials, expected maintenance and weather proofing the home for maximum efficiency if needed.

If you’ve taken the time to do a little homework, the slowdown of the real estate boom will have little effect on your rental property investment. It isn’t the return rate on rental properties that has decreased, but rather the beginning of equalization in supply and demand. The current prices of properties remain lower than other comparable properties for sale abroad as there are still more sellers than buyers. This will begin to further equalize and continue to create revenue for rental property investment owners as rents will adjust over the course of time accordingly.

This concept is important to understand as no one part of any economy changes without a change in other aspects of the same economy. As equalization with average prices in the EU occur over the course of the next several years, corresponding increases in the cost of living and the amounts of rents will ensue. This will lead to a higher median wage based on the increased living expenses and higher rents, feeding the cycle of the economy sufficiently to create a balance that will better give a picture of the country. If these observations are taken into account, then potential investors can do the math and find out that profits will steadily rise. Consider the exchange rate of currency based on the foreign investor’s currency ratio to the Euro, and it should be easy to establish a viable scale of the probability of profit on an individual basis.

The stabilization of the real estate boom in Hungary is another marker that Hungary is maturing and will remain a steady environment for real estate investors in the future.



By: Miklos Roth

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