Investment returns:
Rental yields are projected to be between 4 - 5 % of the value of the property per year.
The primary motivation in making this investment is to capture the expected capital
appreciation Budapest should return over the next 7-10 years.
The following table illustrates a projected return on an apartment
costing €132,500.00 over a 10-year period.
The above assumes a rent of €5646 per year or €470 per month, 11% per year annual appreciation,
costs of fund of 4.25%, rental income from the apartment grows at 4% per annum.
The price of the apartment after the 10-year growth period is still less on a cost per square
metre basis than what would currently be paid for an apartment of similar size in Ballsbridge or
Merrion Square in Dublin 4 in 2004.
The location is “like for like” Vaci street is the premier location in Downtown Budapest.
The investment question becomes, is it likely that in 10 years time Budapest prices will be
close to today’s Dublin prices?
We feel the answer is a Resounding Yes.
To find out more about this truely unique investment opportunity,
Contact Solas Today.
