As investments in overseas properties are seeing a steady rise in recent years, interested buyers are on a continuous lookout for properties that yield good returns on their investment.
With so much information on the internet currently available to the common public, finding potential properties across borders have also become a comparatively easier task.
However, before zeroing in on a particular property in a foreign country, it is important to research extensively on the pros and cons of investing in the country of your choice and choosing the location of the property in that country. To make things a little easier, below is some information on the Hungarian capital, Budapest, which has seen a steady increase in real estate investments in recent years.
Not only has Budapest been a good area for investment, it has also steadily given good returns on investments for foreign investors. Due to this factor, the city has been one of the most sought after locations for many overseas investors. The primary factor for being one of the most favourable locations is the comparatively low legal costs associated with the registration of the property. In addition to the low registration costs, the local government has now loosened the rules on property investments, both overseas and local.
Although a European capital city, the property rates in Budapest are currently much lower compared to most other cities in Europe, leave alone capital cities. Budapest is extremely favorable not just because of the financial aspects associated with it, but also because of the rich natural resources and climatic conditions in seen in the region. These factors make this destination a perfect retirement destination as well. For others who are looking at just the ROI factor, once again, Budapest becomes the perfect choice because of the lower rates currently prevalent, as well as the incredibly fast developing real estate industry.
For a potential foreign buyer, the legal costs amount to about a percent of the entire property cost. This is minimal compared to the already low real estate rates compared to that of the rest of Europe. The documentation work may take anywhere between a couple of weeks to about 10 weeks. Once the documentation work is complete, the buyer will be able to register the property.
Multinational Corporations are also beginning to show interest in Budapest investments. This is due to the tax benefits that the local government offers. Foreign investments, as a result, are contributing a significant portion of the country's overall returns.
Local investors are also benefiting from investing within the city. If local investors purchase a residential property in Budapest, the government offers them a 10% grant in appreciation of the investment. Local investors also prefer to invest heavily in property because of the prevalent and continuously growing land rate appreciation, which is currently anywhere between 10 and 15 percent.
As demand increases, growth also increases, contributing to both the economic and structural development of the city. Wise investors see this as a sensible choice for investment. Now may me the right time to invest in a property in Budapest before the rates double and become a dream too far to come true.