Foreign Property with Potential?

Bullensroad

Hello folks,

I am thinking of buying a foreign property (2bed apartment) and spoke to a friend who has some Eastern European property, Budapest actually. He spoke highly of the potential in this marketplace as long as you purchase through the correct channels and dont get charged the foreigners price. I am sure this happens in a lot of cases. He said Budapest is beautiful but you need to purchase in the correct district. Does anybody have an opinion on the correct districts and where can one begin to research possible properties.
He also said that Bratislava in Slovakia has potential opinions and info on this would be gratfully appreciated.
Thanks for any help.

Bullensroad.

jdivision

Bullensroad wrote:

Hello folks,

I am thinking of buying a foreign property (2bed apartment) and spoke to a friend who has some Eastern European property, Budapest actually. He spoke highly of the potential in this marketplace as long as you purchase through the correct channels and dont get charged the foreigners price. I am sure this happens in a lot of cases. He said Budapest is beautiful but you need to purchase in the correct district. Does anybody have an opinion on the correct districts and where can one begin to research possible properties.
He also said that Bratislava in Slovakia has potential opinions and info on this would be gratfully appreciated.
Thanks for any help.

Bullensroad.

I'd advise you to stay away from Budapest for the time being, there are serious fears the currency will collapse and there's going to be a lot of Irish people in tears. Districts V and VI, preferably around Andrassy ut and the Oktagon, are the places to be there - avoid everywhere else basically. A lot of the stuff being sold here is seriously overpriced.
Bratislava might be a better bet, don't know enough about it to comment but Ballymore is developing a massive scheme called Eurovea there.

connundrum

Agree with the poster above..

Bratislava will hopefully be the next Prague if I've anything to do with it

I know of that Ballymore development, and there's rumours that another company will be going in building a self contained ski resort near the city in the not too distant future - with a view to releasing it to the Irish only. Eyes open etc :eek:

cousin_borat

jdivision wrote:

I'd advise you to stay away from Budapest for the time being, there are serious fears the currency will collapse

I would'nt go so far as to say collapse. You are right that Hungarys long term currency rating has been downgraded due to a deterioration of its public finances. Hopefully the goverments recent plans to reduce the budget deficit by 2008 will be sustainable.

If looking at property stick to downtown such as district 5 and make sure its the right price.

r3nu4l

According to Channel 4 - Romania is the #1 place to invest.
Check 20 best places to make money

jrey1981

I was reading something about Berlin yesterday - quite tempted to look into it, as I do not have a lot to invest, but would look at taking out a small mortgage to cover the shortfall.

Apparently you can buy places from €30k...anyone else heard anything about it?

I sell foreign property for a living
Hungary can be tricky with the currency fluctuations because there is no stamp duty if you buy under 60,000 but then the currency can change before you sign the contract and all of a sudden your paying another couple of grand on top of the price.
I wouldn't be so doom and gloom about the situation there but there are in my opinion better options.
Slovakia has an interesting guranteed rental project at the moment (7%) for two years and theres no capital gains after two years there which is pretty good. Capital appreciation is supposed to be 15-20%. But prices for that are around 92,000 and I just have a slight feeling that its a bit overpriced as slovakia is such a cheap country.
Turkey I think is the cheese for the small investor, with morrocco closing in. Low prices, good rents

Sloshdrop

I source property for Irish investors and always advise to opt for a country where, at worst,if it all went horribly wrong, you or your retired parents/auntie/in laws could live in and subsidise your investment.Living in Bulgaria/Romania/Hungary in mid February does not appeal but life in Portugal/France /Spain/Cyprus at the same time does.Flights?What happens if Ryanair are the only carrier and they decide that route is no longer profitable?Reliable and honest management /rental company?
Also,a transparent legal system is important.The UK obviously is always easy but without the good weather!Shanghai ? Leave it to the big property boys.
Like El Rifle I think Morocco has potential,politically it is strongly supported by the US,but it is a very different culture from Ireland and beware the probable future relocating of Spain's "plasticos"(in every way tasteless vegetable growing polytunnels).
Like all outside investors in another country you are always going to pay more than a local will. Vendors in Croatia/Slovakia/Bulgaria and even Spain are very happy with the prices they are achieving from SSIA wealthy Irish investors,so just make sure you do all due diligence,take your time and do not begrudge the cost of professional advice.Do your sums and dont be seduced by the % of the return figures.What about extras?Dont fall for "there are only 2 plots/apartments left so we need a decision today" Remember,its your money so do not be smooth talked/bullied into making a decision.