There is often a question from buyers-investors who purchase a property in Budapest about whether they need to buy a property in a new building or in an old classical building in order to be it profitable in a future too? Well, it depends on buyer’s purpose of using that property, it depends on district, area, the amount that buyer willing to spend and so on. But let’s look for some significant differences between this two properties from the profitability perspective when the property is purchased as an investment.
Classical old apartment in an old building (usually built in early 1900th)
This kind of property can be purchased at a significantly lower price than the average price in a local market. Usually, these properties coming without renovation and that’s the biggest “drawback” and based on which you can negotiate on price significantly. After making a renovation and reselling it in the next 3-5 years it can increase its price up to 100% if you got it at a good price.
The disadvantage of old properties usually on their condition. Some of these properties require minimal renovation but others complete renovation and not everyone has a capacity and willingness to have such a big work with them. Also these properties sometimes can have issues related to overall building’s construction as they are often more than 100 year old. In these type of properties sometime you can face also issues related with water and gas pipes, electricity wires, again it is because they are simply too old.
Property in a new building
Main advantage of new properties over the old one is simply there is everything is new, both technically and aesthetically and buyers do not have to spend on renovation. But the initial price of these properties significantly higher compared to the old one. So there is not too much chance to get double price from the initial one in the next 3-5 years. But if it is purchased with the purpose of to rent it, then it can be realized immediately after buying, what means immediate return from the investment. Another important detail about new properties is that they exist in a very little amount in some districts of Budapest, especially in central districts.
To get more information and be confident about type of the property that you wish to buy contact me and I will be happy to help you to make a right choice.
