Is it still worth buying a home from the money we saved?



Many have asked us whether it is still worthwhile to buy a home for investment purposes and how much money they can expect from them. Not much has changed in recent times, but let’s look at the options and what to expect this year.

There are places where house prices are already rising

house construction

One important turning point is that house prices are already rising in some places. This is especially true for frequented areas of big cities, but these are the ones that are most interesting for us from an investment point of view. It is becoming increasingly speculated that not only will the rent be earned, but the value of the apartment will increase after the purchase.

Deposit rates may be permanently low

Deposit rates may be permanently low

The central bank does not want to touch the base rate for at least one and a half years, which predicts that deposit rates will not change significantly in the near future. However, real yields may fall further as inflationary pressures are expected to intensify. Higher monetary deterioration implies a fall in real interest rates in such an environment. It may also be that our money in the bank is worthless, even with interest, than when we deposited it.

 

Rental prices are rising

Rental prices are rising

Unlike house prices, there has not been such a big drop in rentals. In fact, more and more landlords can ask for a property.

We can still achieve high yields

We can still achieve high yields

Analysts estimate the risk of renting a home for 10 months when looking at rental income. This will be projected onto the price of the entire apartment and then look at the costs the landlord may have.

A well-stocked and renovated furnished studio of 10 million dollars can be rented in Budapest for around 70 thousand dollars, but also in most of the big cities in the country. 700,000 dollars for 10 million dollars is not a bad return, especially considering that deposits only offer around 2 percent interest. This is where the value of the apartment comes in, which further enriches the owner.

 

There are always risks

There are always risks

But don’t forget to take the tax, which is up to 16 percent up to $ 1 million in rental income per year, which is less than 24 percent on interest income on deposits and EHO, but if you’re on a higher income, you have to pay your full income. This regulation forces many to enter into a contract with the buyer for up to a maximum rent of around 70,000 dollars and settle any difference in value in cash.

Find the best home loans from banks in our calculator!

Find the best home loans from banks in our calculator!

The landlord also has to bear in mind the cost of repairs and depreciation of the apartment. Not to mention the risks of collecting money.

All in all, the chances of getting a better return on a deposit than buying a home have improved rather than worsened, but the risks remain. Waiting for purchase is probably not worth it anymore, as loans will not be cheaper anymore, as house prices have begun to rise. In the midst of viewing, it may even change that the government is making some headway in boosting the housing market, which may be revising either the semi-social policy or the interest rate subsidy system. A similar package of measures is expected in the autumn.