About Hungary
5 Good Reasons to buy property in Hungary
- Has EU membership and is set to join the Euro in 2011
- Lake Balaton is the largest lake in Europe and offers excellent watersports, nature, beaches and other activities around its shores
- Cost of living is around half that of the UK , property prices are some of the lowest in Europe
- Low cost airlines fly to the capital Budapest as well as to lake Balaton
- Hungary is rich in culture and heritage and the people are friendly and welcome visitors
Ideal for thoses seeking a more relaxed way of life with a truly temperate climate boasting some of the highest hours per day of sunshine in Europe, this combined with mild winters makes Hungary an exciting proposition to live in, full or part time at half the cost of Western Europe.
Located in the heart of Europe and part of the Soviet Bloc until the late 1980s. Hungary borders with Austria in the west, Croatia and Yugoslavia to the south, Romania and Ukraine to the east, and Slovakia to the north. The country is about the same size as Portugal, and the capital is Budapest. Budapest has a population of around 2 milllion, and is named after the rivers Pest on the east side, and the Buda on the west. The population of Hungary today is a little over 10 million.
Hungary is by and large relatively low lying interspersed with hilly and undulating regions towards the west and southwest. The country boasts well over 1000 lakes of which the largest is Lake Balaton comprising nearly 600sq Kms. Lake Balaton is in fact the largest in Europe ( outside Scandinavia ), 78 km at its longest and some 15 km wide surrounded by vine yards producing some of Hungarys best wines. Lake Balaton is truly unique in that it is extremely shllow, only around 3 metres in depth, and the average water temperature throughout the year is 26C.
Throughout the 1990s, Hungarys economy proved difficult to manage with high inflation and sprialling costs. Latterly the economy is fast approaching European norms through the implementation of rigourous financial targets applied by the Government. Inflation at less than 10% is fast approaching the rest of Europe.
For Map of Hungary please click here >>
Getting to Hungary
The national airline carrier Malev Hungarian Airlines flies non stop from London Heathrow to Budapest. In addition there are an increasing number of low cost airlines like Easy Jet operating out of the UK.
As well as many airlines flying directly from the UK to Budapest, Ryanair now fly 3 times a week from London Stansted to Balatons own airport, just 10 minutes drive from the lake.
Why invest in Hungary ?
Hungary was part of the Austro-Hungarian Empire, which collapsed during World War I. The country then fell under communist rule following World War II. Following the collapse of the USSR in 1991, Hungary developed close political and economic ties to Western Europe. It joined NATO in 1999 and is a frontrunner in a future expansion of the EU.
The Hungarians are pleasantly surprised at their popularity in Europe and the way that the West is increasingly viewing Hungary as an ideal bridge
to the East.
The Scandinavians in particular keep investing in Hungary. The Finns, Swedes, Germans and more recently British are also now doing so in abundance.
Hungary has made considerable progress in transition with 80% of economic activity in private hands, advanced price liberalisation, an open foreign trade and investment regime and significant advances in the opening of key markets such as telecoms or energy.
A recent actricle on Investing in Hungary.
" The Observer "
One of Europe's largest freshwater lakes, Lake Balaton in Hungary, is reclaiming its place as one of the Continent's playgrounds.
Balaton was where the nobility of the Austro-Hungarian empire went to escape the blistering heat of the city, only 90km from Budapest and 180km from Vienna. Hunting, sailing and fishing were followed by relaxation in the many thermal lakes.
After the fall of Communism, many of the villas were repossessed by the aristocratic families and soon Germans, Austrians and even the Dutch had moved in. The influx drove prices up, but with the first price hike over a healthy second-hand market is rapidly developing.
How do I invest in Hungary ?
Foreigners are only allowed to buy property in villages or towns. The north shore is the posh bit - the poshest part of all is the incredibly pretty Tihany peninsular, but this is a national park and not available to foreign buyers.
The south shore, especially round Siofok, is brasher and cheaper. Lakeside property is more expensive and prices rise in the hills around. The bargains lie in the hinterland. Property gets considerably cheaper the further it is from Budapest, if you don't mind an extra half an hour's drive from the airport along the lakeside road. There are several estate agents specialising in the Balaton area, but most speak German rather than English.
The cost of purchase is about 10 per cent of the price, including tax, 3 per cent for the estate agent and 1 per cent for the lawyer. The process takes up to eight weeks, including getting the necessary permissions to buy as a foreigner. If you are buying as an investment, remember that capital gains tax at 20 per cent will be levied when you sell.
Hungary is stable, the people are welcoming, the summers are sunny and hot and Lake Balaton is an established holiday area with lots of family fun.
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