Is it worth buying property for investment purposes even with interest rates rising? - we asked Dávid Valkó, lead analyst of Otthon Centrum, whose answer was a resounding yes. He added, however, that the various attributes have to be weighed much more carefully than before. Specifically, the location, size, layout and accessibility of the flat, and whether basic services are available in the neighbourhood.
Those looking at buying new flats should concentrate on busy locations and the payment options. There are several ongoing residential projects in the capital where advance payment upon signing the contract is only 10-15 percent, and the remaining sum has to be paid only upon moving into the flat. If we are onboard already at the outset of construction, this in itself is an attractive opportunity, since by the time the residential block is completed, our reserved fl at is already worth 15-25 percent more than when we reserved it. We can even realise this profit if we sell the flat before paying the remaining purchase price, says Valkó, although he adds that some developers try to prevent these kinds of speculative buys.
As investments, flats on the Danube riverfront and the Corvin Promenade, as well as around the Skála in Buda are optimal targets, but it is also worthwhile to look around in the neighbourhood of the stations of the new metro 4 being built, as well as used flats around university areas. The latter, especially the 2-2.5 room ones, can always be let at good prices. Once we have a flat in a visibly developing neighbourhood, we should wait with selling at least until the specific project is launched - this is a guarantee that it will actually be built, which can push the sales price up by a few million forints.
