In reply to rental values if you work on 5 - 6% of purchase costs the divide by 12 that will give you a guide for rental

I would suggest between 450 - 500 euros max for a nicely furnished 1 bed apartment on the back on a high floor

Maybe 350 euros for unfurnished  and 80 - 100 euros for a parking space in the garage.

I went over last week  to do the technical handover and was quite impressed by the quality

only a few monor snags to repair.

Kitchens are a bit small but overall good quality.

Spoke to developer they are now going to build a 4th phase at the right hand end this will be phase 4    so building work will continue for at least another 3 years which will affect rental values.

if you are thinking of selling I wouldnt bother as the market is flat at the moment. I was offered a 2 bed fully furnished apartment built in 2006 with tenant in situ for 61,000 euros

so hold tight for at least 5 years then no CG tax

I'll post so upto date photos later

Rgs

and all keep posting with as much info as possible

G4set

Administrator

 Shane

Thanks For the Kitchen costs , i will get that organised soon. Iam considering selling my property in the near future, depending on what return i can get for a 2 bdrm .I guess Otthon can help in the selling of my apartment or does anyone know of a better place to contact.

                                       JB

JB,

Thanks for the update on the Keys. I am getting my Letting Co. (City Lets) to fit out the Kitchen appliances for 1600 eur, I expect the Kitchen Cabinets are included in the price.

Regards,

Shane

Hi,

Does anyone have any idea what sort of rentals - furnished and unfurnished - are expected for a one bed unit. 

Also, are foreigners required to pay the VAT of 20% ?

Great Forum.

FH

Shane

Ive just been informed that it will be the middle of june when my keys will be handed over also does anyone have recommendations for kitchen furniture? Ive been given this contact website   http://www.nobillux.hu/         and Iam aware of Ikea but is there any other places that are useful.

Any help would be appreciated

                                         JB

Hi,

Has anyone got keys for their apartments yet ? (Beke Liget)

Secondly what kind of rents are people expecting on a one bed apt ?

Thanks

Shanemud

Hi

I'm going over on 28th April for 2 days

got a return flight for on £20 with ryanair from Liverpool.

If anyone wants me to check out their apartment progress let me know

If anyones around at that time id love to meet up to discuss how the rental market is at the moment.

I plan to rent one apartment furnished and leave the 2nd unfurnished to appeal to a wider market.

if anyone wants to rent an apartment off me

pleae contact me direct

g4set@hotmail.com

hI

iVE GOT 2 APARTMENTs  and wondering weather its best to rent out furnished or unfurnished and what sort of rent you could expect for furnished and unfurnished?

I belive the apartments will be ready in June

Have you had a tax demand for stamp duty off Sigma?

Apparently the hungarian govt. are getting tougher

Hola to every body,

I just find this fantastic foro to talk about our investment wich I find very interested.

Este mensaje es para Luis, somos españoles y hemos comprado un ático en Beke liget, a ver si nos ponemos en contacto y hablamos del tema para cotejar informaciones.

Saludos, Regards,

Soraya

Hi all,

I've recently had some experience of a limited number of Budapest letting agencies from a point of view as a potential rental tenant. Budapest Property Rental was the most professional. They are responsive, offer realistic rental prices and are an established outfit (part of Bradley Edwards). City-lets was next best: reasonably responsive but some of their apartments were over-priced - or rather the advertised price was high.

When choosing a letting agent, don't necessarily go with the company that suggests the highest rental price for your property (this is an easy way for the agency to attract your interest). If the price is significantly higher than market rates then you will have to reduce it anyway. It is common practise in Budapest to advertise prices 10% higher than the target price, but I've found that for some apartments the owner/letting agent will accept a 20% reduction if I propose it.

Regarding furnishing, my personal opinion is that Budapest Property Rental offer the best furnished apartments (both in terms of design and practicality). The City-lets apartments were a little sparse, though they may be fine for the target market of the Beke Liget development (I assume young Hungarian professionals).

Hi

has anyone else had a demand to pay stamp duty yet?

Also anyone recomend a letting agent - I was over in Nov but cant make up my mind who to use, they all seem a bit shady.

g4set

g4set,

Sounds a bit suspicious to me. Why are they asking for payment in pounds? Why is a third party company involved at this early stage? Also, check out this: http://ichabodisitchy.wordpress.com/2006/09/

As far as I am aware, you will need to pay tax based on the value of the property to the local authority in District XIII. I would expect the local authority to send a letter stating the amount to be paid and terms and conditions a few months after the official date for handing over the flat. When I bought my flat, I didn't receive a request for payment until over a year after the hand-over date!

I suggest you phone SIGMA to clarify what is in the letter and precisely what the payment is for. If necessary, check with a local (Hungarian-based) expert.

If you need a rough translation feel free to ask me.

Stamp Duty

Hi has anyone had a letter from SIGMA credit management requesting payment of stamp duty?

Ive had 2 letters one asking for £236 and another asking for £622 to be paid within 30 days.

I think it is stamp duty but not certain as most of the letter is in hungarian. I was told that stamp duty was paid after completion maybe 3- 6 months. The leeters are on behalf of Tax office in Budapest 1 district.

This is a worry as I havent even paid the final amount yet but they are chasing me for tax!

Anyone have any ideas let me knoow

Thanks

G4set  

Ive posted some new photos of construction, Nov 2007

Photo 3 shows the common area which will be an area for residents to relax on 1st floor

Plus other photos of bathroom and kitchen tiling

Hi All,

just got back from Budapest 9th November 2007

Update

Development is scheduled for completion April 08

Because we have to get kitchen fitted after hand over you need to allow a further 2 -3 weeks before you can rent out. The developer won’t allow kitchen to be fitted until we have paid balance and get keys.

Work on phase 3 will start soon this will cause more development and disruption for flats in phase 1 & 2 at the back up until 2009 -10. I have been told that 90% of phase 1&2 are sold with about 50% going to locals this leaves 50% for letting.

The developer is offering kitchens through a sub contractor I looked at some and basically just a standard kitchen which you pick what doors and work tops you want, they are going to e mail price next week.

I also spoke to an Irish guy who can supply kitchen and furniture as a complete package he recons for about 5-6000 Euros in total for everything including appliances

I will let you know when he e mails me.

My apartments are on 1st and 2nd floors and have been tiled and plastered the quality is good and they had about 20 -30 workers on project when I visited last week.

I think we should get 450 euros a month for a 1 bed furnished and maybe 50 -80 euros for parking

Management fees are 10% plus 25% tax on rental but the tax is a grey area with many people not paying at moment? Anyone have any advice on this?

Regards

G4set

Furniture Packs

Hi Gareth
I am in Budapest now, I have been to the development today and it is looking good. Latest completion est is end of April, With regard to furnishings it is true that you will be unable to furnish apartment until you have paid all the money. With regard to the Kitchen installation Im not sure, The developer has sub contracted kitchen fitting and supply, I am going to see sample kitchen on Friday. They want 1700 euro to supply and fit. I will post some photos next week.
Can I ask what you are paying City lets for your furniture pack as I have made contact with an Irish  company over here who can supply  furniture and kitchen package
Rgs
G4set

Hi everyone

I have bought a one-bedroom apartment in the Beke Liget complex and was considering holding onto it for a while. But I have since learnt that we have to buy kitchens to fit in and having just lost a lot of money on a Florida investment, I don't have the money to pay for this. So if I can't furnish it or rent it out (I've been told the cost is in the region of 8,000 euros) and if mortgages tend to be expensive so I can't add on the cost of furnishing into the mortgage price given just a return of 350 euros a month, I am thinking I might have to flip the investment unfurnished. Any idea if this can be done? Is it likely to sell? What would be the penalties? Would I get any sort of return on my investment? I put down 15,000 euros a couple of years ago? Does anyone know when the property is meant to be finished now?

Thanks for any tips,

Terry

bradvalentine@hotmail.com 

Hi All

Furniture packs

with regard to furnishing Ive had a quote off citylets who say they will be looking after about 50 apartments in this development.

They quoted 6000 Euros plus 1000 euros for a fitted kitchen, they said the quality will be better than Ikea but in keeping with they type of tenant who will be renting.

I think I will go over myself and buy the furniture from a local store theres one near buy - I estimate to pay no more than 3500 euros for everything and with 2 apartments to let I recon on saving 5000 euros anyone else interested in buying with me let me know and we can get a better price.

Cheers

G4set

I've just paid 8000Euros to have a 1 bedroom apartment at Riverloft furnished.  This included a 30inch plasma/lcd tv and all electricals except oven, hob and extractor as they were included with the apartment as were the kitchen units.  This is through Bradley Edwards.  They offer 3 levels of furnishing; basic, standard and executive.  I went for the standard package but with an upgrade of the tv.  I think the basic package should be OK for Beke Liget if the rental's only going to be 350euros per month.  I think Riverloft will be marketed at 500euros/month.

Based on the standard package then 10000euros for full furnishing including a kitchen will be the going rate.  The only way to get it done much cheaper will be to go across and do it ourselves!

Cheers,

Chris

I sincerely believe that 10.000 € is too much.

I am waiting for the final kitchen draws in order to receive an estimation of the value of the furniture.

The other option is once the apartment is delivered take into consideration the IKEA option.

I had a couple ofletting agents over from Budapest last week to talk to me about letting out my 1 bed apartments in Beke Liget.

The company was BP Partners

They seemed to think it would be no problem to let out and want 1 months rent plus about 8% of rental to manage.

They can also fit out but quoted about 10,000 Euros for 1 bed to furnish and fit kitchen and supply furniture which seems high to me.

Im going over 1st week in Nov to finalise, also speaking to Citylets and Bradley Edwards to get quote off them.

Anyone know if completion is still on for April 2008?

Thanks

G4set

Hi all

First of all, sorry for my english.

I have gone to Budapest on 07th August 2007.

Tomorrow I will put some photos of development.

More information of rental process?

Best regards

Thanks for your comments JohnHunyadi

I need to purchase 2 kitchens for the appartments and get them fitted

How much should I expect to pay?

What sort of rental can I expect to get for a 1 bed apartment in this development ?

I have also bought a parking space in the basement for one of the apartments do you think this will be a good plus to let the flat?

Also do you know of any good letting agents who could manage the properties for me

Thanks for your imput in this forum

I will be over in November to sort out furniture and white goods so may see you then

rgs

G 4 set 

Dear all,

I haven't invested in Beke Liget 13, but I own a flat close by. In fact, I pass Beke Liget 13 on my daily commute. I just wanted to offer the benefit of my knowledge, having lived in Budapest for several years.

For now just some general advice based on my own experience and that of others I know who have bought property here:

- don't expect a development to be completed on time. The majority are completed late (in some cases by several months). If a development is on schedule then fine, but if it drops behind it is unlikely that the builders will be able to make up for the delay

- if you are planning to sell on your flat within a couple of years, then take into account the nature of the local property market (unless, of course, you expect to sell to a foreign buyer). The property market in Hungary is much less fluid than in the UK. Mortgages are expensive and usually maximum of about 60% of the value of the propery. Generally small flats should be easy to sell as that is what most local buyers can afford. Larger flats may take some time to sell.

- if you want to furnish your flat relatively cheaply, then IKEA is probably the best bet. There is a huge store in District XIV, prices are low, very popular with younger Hungarians due to the modern designs, easy to get everything delivered. But there are alternatives: lots of furniture stores in District XIII.

New Flights from UK direct to Budapest

Ryan Air are starting flights from liverpool direct in October

Ive just booked 2 return flights for £70 (total)  only 1p plus taxes fling out 5th November

This is good news and should boost the values of our property in the long run

G4set

Hi All

Im going over 5th November to sort out letting agent and furniture kitchen etc. We bought two apartments in phase 1 if anyone can recomend a good letting agent I would be greatful.

What sort of rental can we expect?

Im looking for a long let 2-3 years then try to sell one of my apartments

Ive chosen the tiles from e mail nfo that the developer sent me Im dealing with Blanca from Ottrum Centrum they seem ok

They advise to buy furniture from IKEA or similar, when I was last over there was a big store nearby and the prices were cheaper than UK the only problem maybe the hassle of organising.

Any info lets all keep in touch

Cheers

Garry fawcett

g4set@hotmail.com

Hi all,

Just back from Budapest.  Got a couple of photos to post soon (it may be a couple of weeks before I can do this though).  They've got the windows in now.  I tried to visit the sales office to choose the interior (floors, tiles etc) but it was closed due to some sort of reorganisation. The property management company I've signed up with (Bradley, Edwards & Associates) for another property in Budapest are putting together a kitchen package. Judging from their furnishing packages I don't think it will be particularly cheap though. I think they're going to offer "standard" and "executive" options.  More details as they emerge. Everyone was indicating completion in March 08, even the site foreman (who seemed to have had a 'liquid lunch' but was very helpful). Apparently the plans for Phase 2 haven't been approved yet.

Chris

Hi G4set,

Just posted new photos taken in May by my Father. As you can see it is coming along nicely. Completition is looking like 1st QTR of '08.

Thanks

Eoghan

Hi

anyone got any new photos of development?

Hi I am planning to go to Budapest to sort out getting kitchen fitted  for the 2 appartments I have bought in phase 1 anyone got any advice of best place to buy and name of tradesman

Thanks

G4set

got an e mail off my layer today to say our permits had been granted any one got any news on kitchen fittings etc?

Thanks

g 4set

New photos have been submitted by Luis the date should be Jan 2007 not 2006!

Looks like they are making progress at last

Regards,

G4set

Does anyone know if this project has sold out yet and also, have you had any info about the kitchen is it supplied fitted or is it an extra cost.

Thanks

Garry fawcett

UK

IS THERE ANY SPANISH BUYER ON BEKE LIGET?

BEST REGARDS

LLUIS

Anyone got any progress photos of this development, I heard they have started ?

Thanks

G4set investor

My final contract says expected completion date is 31/12/07

with a further 3 month extension before penalty clause operates.

However as buyers have only paid 25% one would imagine that

the seller will be anxious to complete as soon as possible but a

lot will depend on the rate of sales i.e. if phase 1 is sold out then

building will be fast.

Disappointed that there is no storage space for sale despite promise

that there would be.

Kitchen fit-out ? How about IKEA in Dist.xiv.and asking sales

representative for the name of a tradesman to do the job.You

would be surprised what information 100euro would buy you.

Hi All,

Ive just completed the contracts for 2 1 bed apartments in phase 1

I'm confident that these investments will do well, the quality of the apartments will be to a high standard  Does anyone know the best way to get a good kitchen fitted as they dont come with any kitchen?

Any photos of construction progress would be good. I posted the first photo of the site when I was over there back in Feb 06

Cheers

G fawcett