Let me be clear upfront – Europe is heading towards a dark and cold Winter, courtesy of EU politicians and their energy policies over the years.
Hungary is managing the situation better, by trying to be as neutral as possible between Russia and the EU. It managed to negotiate sanctions carve outs for itself, which should ensure it continues to get access to Russian oil through pipelines that go through Serbia and the Balkans.
Whether you believe Hungary, morally, should joint the fight against Russia is besides the point. From a purely economic point of view, having access to energy is better than not having access to energy. This is also a decision criteria when investing in Hungary. Magyars (Hungarians) are a unique people amongst Europeans. Their language is completely different to all the languages surrounding them, ethnically they are originally from far away East of the Urals, and they have a history of being combative and fiercely independent.
It’s something you feel when you arrive in Hungary. The people are distinctly different from their neighbours; it’s part of the charm of Hungary.
I wrote a complete report on the real estate market in Budapest, and why I believe it is one of the most interesting markets in Europe right now.
I find this market interesting for two types of people
For Europeans who have most of their savings in euros and want to buy in a currency that performed worse, but is in a safe jurisdiction, and is close to home, Hungary fits the bill 100%. Also, when investing in the center of Budapest, one can set rents in euros or indexed to the euro.
I’ve owned a few apartments in Budapest for a number of years, and my rental income has always been euro denominated. For Europeans it’s a great way to benefit from the HUF depreciation during the purchase, while still getting Euro cash flow.
2. Investors with USD or other hard currencies
You can get A LOT of bang for your buck in Budapest right now with USDs. You’ll be able to buy amazing historical properties that can then get passed down the generations. This is one of the points I love about owning real estate in Budapest – the sheer historical value of it. Also, as we demonstrated in a video with Benedek, my buyer’s agent, it is also possible to get very good yields on Airbnb using specific strategies (video here).
I would not go all-in Hungary
I would not go all-in Europe at this stage, but a small allocation to Budapest is very reasonable diversification. Interest rates are already high, the market will be less impacted by interest rate rises, which makes it even mire interesting in the current monetary environment. I discuss this in the full article.
Non-EU people can obtain residency by investment through real estate in Hungary
It’s a programme that absolutely never gets discussed anywhere, but yes, if you buy real estate in Hungary for a minimum of €180,000, using the right structure and lawyers, you can get residency for you and your family in Hungary. As Hungary is part of Shenghen, it effectively becomes like a Golden Visa in Greece or Latvia, with the difference that you are getting quality, well priced real estate. Taxes in Hungary are also very low, so it makes it one of the best tax bases in Europe as well. You can find more information about this little-known Hungary residency by investment program.
Make sure to read the full analysis and article on investing in real estate in Budapest.
Available services in Hungary:
- A Real Estate Lawyer in Budapest, Hungary
- My favourite buyer’s agent in Budapest, Hungary
- Residency-by-Investment in Hungary for non-EU people
Other articles on Hungary:
- How to maximize Airbnb yields when you invest in Budapest – up to 10% net yields
- Price drops of 30% in downtown Budapest
- A cheap Plan B in rural Hungary
- A real estate investment in Budapest, Hungary?
- Why did I sell my Budapest Apartment?
- Investing in the Stock Market in HUNGARY, good value or value trap?
If you want to discuss your internationalization and diversification plans, book a consulting session* or send me an email.