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Welcome to the New Budapest Renovation Company!
We are a 'turn-key' residential renovation company
that specializes in refurbishment of older
type apartments in the center of Budapest.
Take a look and give us a call if you need assistance!
 
 
WE HAVE A SOLUTION FOR    EVERYONE!
 
  - LOW BUDGET    RENOVATIONS
- MODERATE BUDGET    RENOVATIONS
- LUX RENOVATIONS
 
 
Office: 1052 Budapest,
Feherhajo 12-14
Tel: +36-1-4111-651
Fax: +36-1-4111-649
Mob: +36-20-33-44-294
 
 
 
         Why Renovate?
 

Once a target property has been acquired, a great majority of the owners decide to proceed with renovation. But why? The following is a list of the reasons why renovation makes sense.

Reasons for renovation:

1) PROPERTY CAN BE RESOLD AT HIGHER VALUE

Owners who are in the market to acquire and immediately (or within short time) resell apartment properties can gain a substantial increase in the capital gains on the property just by renovation alone. Interior renovation of a flat is the single most important action an owner can take to increase the resale value as opposed to just waiting for other 'external' factors, such as a general rise in pricing, district improvement, and external (facade) building renovation.


The sale prices of renovated apartments in Budapest today are substantially higher than those for non-renovated properties, and this difference is especially significant for run-down apartments. In some cases, the difference in sale price before and after renovation can exceed 50 percent! As a general rule of thumb, you can expect the value of your property to appreciate by approximately 20-25 percent virtually immediately after the completion of work.

2) INCREASING THE LIKELIHOOD OF FINDING TENANTS FOR RENTAL PROPERTIES

Renovating a property for rental purposes is a wise investment since it increases the likelihood of finding a suitable tenant and reduces the time that property is off-market and not generating rental income.

Presently, the local residential rental market can be divided into 3 categories: locals, students, and expatriates.

Locals, or Hungarian families consisting of single couples are usually in search of smaller apartments around 50-60 sqm in the greener parts of Pest, such as district XIV or XIII, or in the neighborhoods of Buda. The rental income from such flats is medium at best, especially at present time of widespread of highly attractive mortgage loans for Hungarian citizens and families. As the rule of thumb, rental rates for this category stand around 1,000-1,100 HUF per sq./per month.

Students, which include both foreign and Hungarian students usually band together and rent large flats in the city center. A common scenario has 3-4 students living in one large apartment of about 100-120 sqm. Such flats usually have 3-4 separate rooms and a separate bathroom or toilets; however, not every flat can be utilized for this purpose therefore such considerations should be taken into consideration prior to acquisition of the property. Renting to students is an option that currently used by many foreign investors since these properties can be rented relatively easily providing good yields with an approximate 10 year pay back period. The demand for these properties is constant, as there are tens of thousands of Hungarian and foreign students studying in Budapest at the various universities.

As a rule of thumb, rental rates for this category range around 1,300 to 1,600 HUF per sqm/per month.

The third category, the Expatriates include businessmen, diplomats, and many other foreigners and their families. Such individuals and families rent large apartments in the center of the city or in nice parts of Buda, as well as houses on the Buda side. The demand from this category is expected in increase in the near future, as large multinational companies such as GE, UDV, and Microsoft are establishing their regional and even European headquarters in Budapest.


As a rule of thumb, rental rates for this category can range anywhere from around 2,000 HUF to 6000 HUF per sqm/per month.

3) INCREASING THE RENTAL PRICE OF THE PROPERTY

A renovated apartment will attract a higher class of tenants increasing the amount of rental income received from the property. The better the quality of the renovation, the better the image it will portray and the more income it will generate sometimes as much as 30-40 percent more in any given category discussed above.

We at New Budapest can assist you with your rental income planning, by concentrating on the proper utilization of your renovation dollar. We perform renovations for any given rental category, customizing the renovation process to your budget.

4) PROPERTY CAN BE USED AS A RESIDENCE

The majority of the older type apartments in Budapest today are not up to the standards of North America or Western Europe. These apartments have not been renovated for decades and have old-fashioned, malfunctioning electrical, heating, and plumbing systems with a significant number lacking telephone lines. Such conditions make the flat unusable and indicate a clear need for renovation.

The complete renovation solution provided by New Budapest can transform such property into a Western style residence with all the modern amenities right in the heart of beautiful Budapest!

5) GOOD INVESTMENT PRACTICE

Renovating a property that has been recently purchased is not only a necessity, but is also is good
investment practice. Renovated properties can be sold quicker and easier and for a higher sale price, making them more liquid investment, which can be a determining factor of good sale in the times of real estate market boom.

 
 
 
 
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