Expat Exchange
Free MembershipSign In

Hungary Expat Forum

Trying to buy in Budapest

New Topic Newest First
SoonMoving
  9/11/2014 05:16 EST

We have been trying to buy a place in Budapest for a while now. We are resident in the UK and wish to buy a home in Hungary.
We have been told by the the Hungarian banks that they are not lending to foreigners.
Our estate agents however has said that "it is possible for their lawyers to arrange a loan for us, through a Hungarian bank" however, I have asked and she won't elaborate how this is possible.

Instead, she keeps asking for us to come over and look at places. We have already found somewhere we like, there are plenty of nice cheap flats on her books, I don't want to fly to Hungary again just to look at places, to find that we won't be able to get the mortgage. In 2009 we found someone where we liked to find that it was not possible to get the financing.

Does anyone know exactly how the lawyers can arrange the mortgage?

Hotjazzman
  10/1/2014 06:24 EST

I'm sorry, but there is no solution - that I know of.

The banks' position is perfectly understandable. In case on non-payment of the mortgage, you are judicially inaccessible in the UK. Repo in case of non- payment of the mortgage of the home is risky; the bank may have to hang on to a home which it may not be able to sell fast enough to recover all expenses - including legal costs, and real estate sales/transfer taxes and commissions. Banks are not interested in holding-on to, and managing real estate.

The agent just wants to get a commission - somehow.

Private financing is RISKY. You can get burned - big time. There is a group of people (well, more like vultures) with money, who are looking for "marks" to rip them off, doing it through "legal" means; i.e. relieving of them their homes in short order.
This group is not picky about their victims, they can be Hungarians or any other nationality - including English. Their primary prey are Hungarians, with fully paid-for homes who are in need of cash. As far as I know, bank-provided home-equity loans are not commonplace around here, so these carrion-birds fill the void.

They appear to be foreign financed...

My suggestion would be - if you own a home in the UK - to take out a home equity loan there, and buy the home here, with that money. The downside is, that the ongoing (massive) UK real estate bubble may collapse, and you can find yourself "upside down" - a very undesirable situation. This can occur only if you already have a primary mortgage on your current real-estate, and you took a second mortgage for your real estate here.

There will be a CARNAGE, a financial blood-bath though, when the bubble bursts (and it WILL - as it always has throughout history); thousands upon thousands in the UK took second mortgages - to "take the appreciation out" - and bought real estate in warm climes in Europe.

William Russell
William Russell

Get a quote for international health insurance from our partner, William Russell.
Get Quote

William RussellWilliam Russell

Get a quote for international health insurance from our partner, William Russell.
Get Quote

Living in Hungary GuideLiving in Hungary Guide

Guide to Living in Hungary covering expat life, local culture, finding a home, diversity and more.

Hungary Forum Hungary Forum
Join our Hungary forum to meet other expats and talk about living in Hungary.

Contribute to Hungary Network Contribute
Help other expats and newcomers by answering questions about the challenges and adventures of living in Hungary.

Best Places to Live in Hungary Best Places to Live in Hungary

If you're thinking about living in Hungary, here are the 15 Best Places to Live in Hungary in 2023.

Healthcare in HungaryHealthcare in Hungary

If you're moving to Hungary or an expat living in Hungary, understanding the Hungarian healthcare system in important. This article offers an overview of the national healthcare system, private hospitals and healthcare, private health insurance for expats in Hungary, clinics with English-speaking doctors and the quality and cost of medical care in Hungary.

Cost of Living in HungaryCost of Living in Hungary

Expats offer insight into the cost of living in Hungary.

Moving to HungaryMoving to Hungary Guide

Expats share 8 things they which they had known before they made the big move to Hungary - from what to bring to finding a good bank, healthcare to deciding where to live.

Real Estate in HungaryReal Estate in Hungary

Real estate listings in popular cities and towns in Hungary.

Pros Cons of Living in HungaryPros & Cons of Living in Hungary

Take off your rose-colored glasses and learn what expats have to say about the biggest challenges and the greatest rewards of living in Hungary.

Retiring in HungaryRetiring in Hungary

Advice for people retiring in Hungary.

10 Tips for Living in Hungary10 Tips for Living in Hungary

If you've recently arrived in Hungary, here are 10 tips for digital nomads living in Hungary.

William Russell
William Russell

Get a quote for international health insurance from our partner, William Russell.
Get Quote

William RussellWilliam Russell

Get a quote for international health insurance from our partner, William Russell.
Get Quote

Contribute to Hungary Network Contribute
Help others in Hungary by answering questions about the challenges and adventures of living in Hungary.

GeoBlue
GeoBlue

Copyright 1997-2024 Burlingame Interactive, Inc.

Privacy Policy Legal