Why aren't people talking about Hungary more? The likes of France, Italy, and Spain are good and all, but Hungary isn't bad either! It's just as beautiful of a destination, not to mention a great place to relocate to. But arguably the best part is investing in a
property in Hungary. There are a lot of benefits to purchasing your own real estate here, such as enjoying a holiday home or even leasing it out for profit. In any case, if you do intend to make this investment, you need to be careful. Purchasing real estate in Hungary is a lot more complicated than you think. Let this guide show you the basics.
Can a Non-Resident Buy A Property in Hungary?
If a foreigner looking to purchase real estate in Hungary, the first thing you ought to find out is whether you're allowed to or not. As of this writing, there are no laws that prohibit foreigners and non-residents from buying and owning property in Hungary. So no, you don't have to
move to Budapest, Debrecen, Eger, or any other Hungarian city out there. What you do need, however, is a permit. You can get this from the local authorities of the location where the property you're planning to buy is located.
What Should You Look For in a Property?
Before anything else, you need to check if the property in Hungary that you're eyeing ticks all your boxes. After all, you'll be investing a lot of time and money to purchase it. It's only natural that it lives up to your specific standards, right? There are
many things to look for when purchasing real estate. There's the overall layout and floor plan, for instance. Does it meet your needs and expectations? What about the security of the place? If you're moving in here with your entire family, you need to make sure that the home is safe enough!
What Are The Costs of Buying Property?
Don't forget to prepare a huge budget when you purchase real estate in Hungary. Not only will it cost a lot of money, but there are other things to pay for on top of that! There's the property tax, notary fees, mortgage costs, charges for conducted surveys, and your
real estate agent's commission. Fortunately, some of these are paid via percentages of the final property price. But others, like the mortgage costs, you have to pay on top of property value. And in this regard, it'd be best if you
set up a local bank account. You'll have an easier time paying all these costs if you do!
How Do You Make an Offer to Buy Property in Hungary?
Here in Hungary, valuation surveys are pretty common. Most of the time, it's the buyer who conducts it, specifically when they're applying for a mortgage. But sellers also do it so that they'll know how much their properties are worth. That's how they come up with the initial asking price when they put their property in Hungary for sale. And when you, the buyer, negotiate for the final price, make sure it's not too far from what the seller has set. It's the true value of the place, after all. Any figure too low or too high won't be entertained.
How Do You Get Mortgage in Hungary?
Getting a mortgage in Hungary is actually pretty easy. All you have to do is to go to a financial institution, submit an application, show the required documents, let them conduct the valuation (or do it yourself if they don't have such services), and wait for the approval. The best thing about it is that you don't have to meet strict requirements to be eligible for a mortgage. As long as you have the permit to purchase real estate in Hungary, you're good to go! They're not as strict here as they are in other countries.
How Do You Set Up the Sale & Purchase Contract?
Setting up the sale & purchase contract is one of the more important steps in the process. Your notary will draw it up, let you include certain terms and conditions, and then both parties will sign it before getting notarized. You need to think very hard before signing the contract. Because once you do, this document will legally bind you and the seller to the purchase. You'll be required to see to it till the end and if you don't, there will be consequences. For you, it mostly means that you'll never see the 20% deposit that you paid the seller ever again.
What Are The Different Types of Ownership Structures in Hungary?
There are four main types of property ownership structures in Hungary that you need to be aware of. The first is land use, which essentially gives all the rights to the property to the legal owner. Second, there's usufruct, which allows another individual to make use of a property even when it's owned by someone else. The third, the right to use, is slightly similar to usufruct as it allows another person to use the property owned by someone else. And finally, the fourth is the right to easement, a structure that also allows others to use the property, but only for a set period of time.
What Are The Legal Issues in Buying Properties in Hungary?
As you may have already guessed, purchasing real estate in Hungary is rife with various
legal issues left and right. There are the aforementioned ownership structures, for instance, in which you have to determine which one you're going to apply to the new property upon purchasing it. Signing the purchase agreement, which essentially legally binds you and the seller you the purchase. You'll be required to see it through to the end. And if you need to, there's also the matter of authorizing your notary. If you ever decide to do this, your notary will serve as your representative throughout the purchase. They can even sign documents on your behalf too!
How Long is The Process of Buying Property in Hungary?
There's no telling how long it will take you to purchase your property in Hungary. If you (and the seller) started the process 100% prepared, it can take as quickly as a month or two to complete the purchase. Normally, if certain issues hinder the process, it'd take around two to three months tops. But if you're not careful, buying real estate in Hungary can easily take as long as six months, an entire half of a year. This will likely happen if you didn't prepare enough beforehand, such as gathering the required documents and applying for a mortgage.
How Do You Search Properties For Sale in Hungary?
Now that you know most of the basics of buying a property in Hungary, it's time to find one! And in this day and age, your best bet is to go online. There are many
popular property listing websites in Hungary that will show the finest available real estate on the market right now. Some of them, like
Ingatlan and
Ingatlantajolo, are great since they also cater to international buyers. Their platforms come in the English language and are easy enough to navigate. They even provide other services such as mortgage calculators and real estate advice too!
What are The Best Tips for Buying Property in Hungary?
Let's end this real estate guide with some final
helpful tips. Firstly, make sure to hire a notary that's easy to communicate with. Professional and trustworthy are par for the course, but it's also very important that you can contact them whenever you need to. Especially if you're a foreign buyer who isn't even in Hungary (yet!). Secondly, when drawing up the contracts, make sure to set a move-in date. Though it's not a requirement, it saves you all the hassle that comes with wondering when you can move in. You'll want to start your life in your new property in Hungary on a good note, right?
Buying a new property in Hungary is no joke! There's a lot you need to know and do and if you commit just one mistake, everything can come crashing down. Avoid that by learning all the basics of the process with this real estate guide!
