Reconditioning property market

More and more people are planning to purchase real estates in order to live there or use them as lettings making a huge profit on that –  the report of vg.hu outlined.

We can see a considerable activity by people who are in search for new properties. They think that now is the time to realize their aims in connection with new investments. The reasons of this tendancy lie behind the dropping prices, the advantegous credit programs and the wide variety of opportunites being offered.

According to Ferenc Erdélyi, the director of Duna Consortium Zrt., there are plenty of properties unsold and in times like these, prices tend to go down. He also claims that a lot of sellers, because of hearing the good news of recovery, will keep their price for a while – they simply trust more in their success.

His company chooses only a few districts in Budapest where they want to invest into buying and letting flats: the 8th, 9th and 13th districts are the most popular ones and mean the fewest risks.

He examplifies with a well-situated, 63 m2 big flat in Újlipótváros which can be bought for the price of around 21M HUF (~68.000 EUR). We can let it for around 110-130.000 HUF (~350-420 EUR) monthly. It will mean a +6% gross profit annually compared to the purchase price of the property.

-KK-

Photo: budapest.athome-network.com

Source: http://vg.hu/