1. WHAT WILL AN ACCOUNTANT COST? >>

Bookkeeping and accounting costs for a company is vary depending on the level of service required. Basic bookkeeping starts at about EUR 150 per month.

2. WHAT WILL THE RENTING AND MANAGEMENT SERVICES COST? >>

Renting fees are usually 1 month of rent and management fees are 10%-12% of the monthly rent. Fees are subject to VAT.

3. WHAT ARE THE SERVICE CHARGES? >>

Apartment service charges are levied at a price per square meter per month. The average price per m2 is approximately EUR 0.5-0.8 per month.

4. WHAT TYPE OF PROPERTIES ARE THE MOST POPULAR WITH FOREIGN BUYERS? >>

At the moment, the most performing properties are those in Budapest's districts (1,5,6,7,8,13) wit a size of approximately 30-120 square meters(330-1320sf). Buyers are looking for both newly built and re-sale properties (renovated or not renovated), in the price range of EUR 60.000-250.000. Commercial properties and land for development are sought after in the centre of Budapest.

5. SHOULD I BUY A NEWLY-BUILT OR RESALE PROPERTY? >>

Newly built properties are usually better investments for foreign investors. There is a builder's guarantee on the building and the interior of the apartment, so whatever is damaged will be fixed. It means that you don't have to spend anything on your property for the first 5 years or so. Tenants prefer newly-built properties. The common maintenance fee is lower. It is a prestige to live in a newly-built property. Buildings are always equipped with elevators. Utility costs are lower. Resale properties: Advantages: There are many beautiful, classical buildings in Budapest that are part of our historical treasures. Disadvantages: These buildings are often in a very dilapidated state. You can refurbish your own apartment, but not the whole building: the hundred year old pipes, wires, and drains can break anytime causing some inconvenience for you, not to mention the extra costs. These buildings are not always equipped with elevators. Common maintenance fees are higher, which makes it harder to rent them out.

6. CAN I EXPECT A GOOD RETURN ON MY INVESTMENT? >>

Capital growth in Budapest has been running at 15-20% a year for the last two years, and prices are predicted to double between now and 2012, when Hungary is expected to join the European Monetary Union. We recommend middle and long term investments. Planning to resell your property after Hungary joins the EUR Zone.

7. WILL I BE ABLE TO RENT THE PROPERTY IN BUDAPEST? >>

Yes. The Budapest rental market is getting stronger. There is a growing demand for rented apartments from the local and ex-pat people for longer terms. Short term rental in Budapest is also profitable, those tenants can enjoy this service that travel to Budapest or stay here for a few days, weeks or months. Professional Management companies can provide you with all services. Among our partners you will find the most suitable one to your needs.

8. WHAT RENTAL YIELD CAN I EXPECT? >>

Rental yields are 6% to 8% on average after a nicely furnished apartment in a proper location in Budapest. Sometimes short term rental can give you even higher yields.

9. SELLER INFORMATION WORKING WITH A REAL ESTATE AGENT: >>

With our experienced real estate professionals at your side, finding your dream home or investment property is much easier, faster and a lot more fun. A real estate agent who is familiar with the location, the home buying process and the language can show you more suitable properties, offer valuable advice, and coach you through the entire home buying process. Selecting the right real estate agent to help you buy or sell your property is essential to a smooth and efficient transaction. Hiring a real estate agent will give you the advantage to make the right decision, but YOU are the one to have the final word in the process. Our mission is to see you SMILE at the end of the home buying or selling process and we work hard to make it happen.

10. PRICING THE HOUSE TO SELL: >>

The property ultimately is worth what someone will pay for it. Everything else is an estimate of value. We provide our clients with a FREE comparable market analysis (CMA-report), based on recent sales of comparable properties, location, square footage, number of bedrooms, bathrooms, garages, construction quality. We are working with professional appraisers who can give you the estimated worth of the property at a given point in time.

11. TAX CONSIDERATIONS: >>

Do you have to pay income tax when selling the property? Yes, but as a private individual, the tax is 20% and after the 6th year of ownership the tax base is reduced by 10% annually. You may also be able to deduct the costs of travel and service fees associated with the property as part of your global income. Hungary has long standing double taxation treaties with most countries, thus making this process quite straight forward. As a company the tax is 18% of any profit, plus 20% of what is left, if the money is withdrawn as income. The purchase price is reduced with an annual amortization (2% or 5% per year), as well as other expenses and fees relating to the property. -What are the tax rates in Hungary? We have outlined below some basic Hungarian tax rates. However, due to the complex nature of taxation in Hungary, as in all countries, we advise you to seek professional advice regarding tax matters. - Property tax: Property tax, where levied, is low and varies from district to district. For example, the 9th district council does not charge property tax on apartments. The 7th district charges approximately EUR 3.60 per square meter per annum if the property is on a main road and approximately EUR 3.00 per square meter per annum on minor roads. This equates to approximately EUR 135.00 per annum for a 45m2 (485sf) on a minor road. -Property held in a Hungarian company Corporation tax is 16% and there is an annual local business tax levied by the district council of 2% of gross turnover of the company excluding VAT. When a company sells a property, it pays corporation tax at 16% at the end of the tax year, as there is no capital gains tax. When calculating the profit of the company you can deduct the annual amortization of the apartment (2%-5% per year), as well as all the other related expenses as mentioned above from the profit. - Property held in an individual name If an apartment is owned privately (not by a company), the tax rate on rent is 25% of the gross rental income. However, there are no deductions for any expenses or annual amortization/depreciation. Foreign nationals must apply for a tax ID and issue a rent invoice to the tenant. Your agent can handle this. Capital Gains Tax (CGT) is paid at 25%. If a property is owned for 6 years, CGT can be reduced by 10% for the 6th year and each subsequent year it further reduces by 10%. The final result is that after 15 years there is no CGT.

12. WHAT IS THE VAT RATE? >>

VAT rate is generally 20%. - What is the tax rate on rent? If the apartment is privately owned the tax rate is 20% of the rental income. Foreign nationals must apply for a tax ID and issue an invoice to the tenant. As a company there is only an 18% corporate tax on any rental profits.

13. NEGOTIATION: >>

Our expert real estate professionals will do everything to make the best and most satisfying deal for you. Let us to worry about the details and move you in to your dream home.

14. FINANCING CAN I GET FINANCING FROM A HUNGARIAN BANK? >>

It is possible to obtain a mortgage from a Hungarian bank as follows: - The amount of the loan is up to 70% of the price of the property - The loan will be granted for a period of 1-20 years - Interest rate euro labor +2.5% per annum - Monthly payments will include capital plus interest - The buyer must be a private individual and get permission to buy in Budapest (?)

15. HOW DO I ARRANGE FINANCING? >>

Our expert real estate professionals will do everything to make the best and most satisfying deal for you. Let us to worry about the details and move you in to your dream home.

16. WHAT IS THE SMALLEST DOWN PAYMENT I CAN PURCHASE WITH? >>

We have managed to negotiate very competitive payment schedules with our developers. In general, apartments can be acquired with a 20-30% deposit. Thanks to our mortgage experts we can assist you in getting a mortgage up to 70-80%% of the purchase price, which is exceptional in the Hungarian market.

17. HOW LONG WILL IT TAKE TO GET MY LOAN EXCEPTED? >>

It usually takes 1-2 months it depends on the circumstances. >>

18. DO I NEED TO TRAVEL TO HUNGARY TO BUY A PROPERTY? >>

Not necessarily. The whole procedure can be arranged from abroad. We have clients who purchased property 4-5 years ago who have never been to Hungary. However, we encourage you travel to Hungary to visit the developments, meet the developers and consult with your real estate agent to find you the best investment opportunity. We are happy to assist you in arranging your trip for FREE: which flight you should take and which hotel you should choose within your budget. Our driver will pick you up at the airport and will take you to your hotel, and to your meetings. We find it very important that you receive all the information you need to make the best decision

19. WHAT COSTS CAN OCCUR WITHIN A YEAR IN RELATION TO MY PROPERTY? >>

The good news is that all property related costs (utility bills, telephone bills etc.) are to be paid by the tenants. In Hungary there is no such a thing as "council tax". The common maintenance fee - which includes the lighting of the communal areas, maintenance of the building and the elevators, cleaning etc - is also payable by the tenants. Although it is lower in case of a newly-built property.

20. WHAT INVESTING PERIOD DO YOU RECOMMEND IN HUNGARY? >>

According to our experience middle-term (about 5 years) investments are the most ideal in Hungary. However, there are some developments where significant capitol appreciation can be achieved within 1-2 years.

21. AM I IN TIME TO INVEST IN HUNGARY? >>

The Hungarian property market is before the "BIG BOOM" that took place in Ireland, Spain, and Greece after they joined the European Union and introduced the EURO. Budapest real estate prices have not caught up with the prices of other capitals in the European region yet, but experts predict this to happen in the next few years. So the timing is perfect right now.