Buying real estate can have a great yield – if you do it smartly

Investment has not been a priority for those who bought estates in recent past, but it seems more and more people are getting into the market with the intention of investing in real estate. But those who are new to the market should be careful with their assets.

Those who really want to invest in real estate and see a good return on their investment should choose very carefully where they invest.

Prices in Buda and in the inner districts of Pest have been holding up, they proved to be resilient – in the outer districts however prices dropped sharply. Should another crisis occur it's a good bet that these districts will one again find themselves on the losing side.

After 2014Q2 prices began to increase in all districts and the trend is still holding up, but it has not been consistent in different parts of the country, and even the capital itself shows a very mixed picture.

The upward trend has been the strongest in the 16th, 18th and 5th districts, while in the 10th prices have not changed much.

But where do the districts stand after the crisis? The only district where prices are higher than they were before 2008 is the 11th. The 5th and 3rd districts see their prices on more or less the same level, while in many of the outer districts we can see that prices are more than 20% lower than they were before 2008.

Those who want to buy estates to rent them out should consider that this still is a risky market. The return of their investment will greatly depend on the number of months in a year when their property is rented and they should also calculate in the taxes, amortization and other expenses like administration fees.

The rental fee can depend on a great number of factors. Average yield is around 6-7 percent, but changes of market trends can have a great influence on demand and subsequently the return of the investment.

(Source: http://www.portfolio.hu/ingatlan/lakas/hatalmasat_lehet_most_kaszalni_lakasvasarlassal.4.216982.html)