Buying a house or apartment is particularly popular amongst expats who plan to live in Budapest for many years. This is a great option if you want to make a place your own and not worry about having a landlord and specific rules. You can find some beautiful homes all throughout Budapest ranging in different prices that best fit what you are looking for.
The housing market is still low due to the economy. This ensures that you can find a home within your standards at a decent price with room for negotiation. It is important to have a good agent to help you find a home within your means who speaks the English language. It is also helpful to have an English-speaking Hungarian lawyer to go over your contracts before signing.
To purchase any type of land except arable land, the person needs a permit from the district council of the local municipality. In Budapest any purchase of property is subject to the approval of the Administrative Office.
You can buy a simple home for restoration (standard walls and roof) at 1,713,343 Ft (GPB 4,000 or $6,200 USD). At 3,427,351 Ft (GBP 8,000 OR $12,400 USD) you will buy a better quality house that is possible to renovate. From 4,284,400 Ft (GBP 10,000 or $15,500 USD) and up you will have a place that you can use for your holiday, or even permanently to live in. Property of more than 21,500,000 Ft (GBP 50,000 or $77,000 USD) will be a very large property or you are paying for the location. There are many possibilities for finding the perfect home that fits your needs.
Most real estate companies in Budapest offer properties to buy as well as rent. Use these sites to find places that fit your criteria:
Another great online resource is the Hungary classifieds on EasyExpat.
Inquire about other people's experiences and ask questions about buying property.
Also, if you have any contacts in Hungary, then see if they know of any reputable agencies, areas, or properties.
When looking for an agent in Budapest, the agent should be knowledgeable in the area that you are interested in and experienced in real estate transactions in Hungary. A good agent should be able to arrange a viewing of units in your price range that fit your criteria. If you do not speak the language, then an English-speaking agent is necessary. If you are interested in a property, then it is the agents' responsibility to find out more information on receiving a fair price on your behalf.
Agree to a fee in writing before the process begins and determine precisely what services you will be receiving in exchange for that money. Be sure to receive quotes from several agents so you are getting the best deal. Before you sign a contract with an agent, be sure you understand the clauses and terms. Have a lawyer look over the contract if necessary. Estate agents also earn their commission from the seller and it is usually 3-5% of the agreed purchase price, but can go up to 10% so choose the best agent that fits your budget.
Hungarian law requires that real estate purchases shall be concluded through private contract countersigned by a lawyer. Most lawyers advise foreign nationals to set up a company registered in Hungary in order to purchase property. By doing this, no permit is needed. This procedure takes 1 to 2 days and all expenses can be written off.
Most contacts include the price and deposit price of the property, a warranty, method of payment, and timing of transfer.
The steps to purchasing are:
Closing usually takes place 60-90 days after initially signing the Purchase Contract. The buyer must notify the seller immediately after receiving the purchase-permission from the Administration Office. Closing usually takes place within a week. The buyer and seller must sign the Closing Statement, which is a declaration that the purchase price has been paid in full and possession transferred. The buyer takes possession of the property. Final registration of ownership rights takes up to six months.
Property auctions do exist in Budapest. If an individual defaults on a Court judgement, then their assets are seized. If this includes property, then said property is often put up for auction. Check websites such as rightmove.com to see the property auctions happening in Hungary.