Are you looking to invest in a certain property in Budapest? Did you know that the difference between a property worth 150,000 euros and another one worth 200,000 euros may be only 5000 euro worth of upgrades, and not 50,000? You see, small changes in a property can drastically impact the functionality of the property, create a luxurious image, or just make the property easier to live in. Sometimes, it all comes down to managing first impressions amongst your potential buyers.
Having said that, there is something you need to know. There are many raw properties available in Budapest, Hungary, and most of them are located in stylish buildings with high ceilings in an excellent location. The architecture is characterised by its distinct art-nouveau or art-deco style, making it hard not to fall in love from the first sight. With some proper research, you can find a hidden piece of gem in a highly sought-after location for a fraction of the price of, say, a flat in London or in Paris, but the potential for renovation and upgrade is huge! Depending on the state of being of the raw property, sometimes, just a bit of stylish touch in the interior design, combined with a few pieces of vintage furniture and decoration, your flat would then have a completely new look and become so irresistible to its future buyers. At the end of the day, the pricing of properties in Hungary has little to do with the amount you paid for when buying the property, or how much you spent renovating it. The value of the property is based on what buyers perceive the value to be. Look, this is not to say that you can hide anything faulty or cover anything that needs to be repaired in the structures. As a matter of fact, if there are any such things, they should be disclosed to the buyers in advance.
So, as a property investor, here is another way that you get the best return on your property investment in Budapest: buy-renovate-sell, namely, you buy a property in a poor, not so good shape, renovate it, and re-sell it to future buyers with a much higher price in a short period of time.
Work on the exterior – it’s obvious that much of a buyer’s judgment on a property is based on the very first impression, which is the property’s exterior. So, as an investor, ensure that you create an element of love at first sight on the property you intend to sell. Most homebuyers in Budapest are attracted by the properties’ curb appeal that they even tend to overlook other small problems in their interior. If a potential buyer gets personally attached to the property, you can be sure that they will offer you irrational amounts just to own it. What’s more, focus on things like tidying the paths leading the property, replanting the grass, repainting facia boards and replacing rusting gutters, which will give the property a completely new look thereby attracting potential buyers.
The kitchen and the bathroom – kitchen and bathroom makeovers generally offer a good return on your investment. This is why the investor should pay a little more attention to both the kitchen and the bathroom when renovating the property. By doing this, you will be able to effectively remove the necessity for potential buyers to redo it, as they will be basically be adding to the purchase price. If this is the case, rest assured that no one will buy that property, and if it’s bought, it will be on a price that is way lower than anticipated.
Simply remove all the outmoded and dirty stuff such as mismatched or chipped tiles, aging appliances or bad paint choices, from these areas. If the cupboard doors in the kitchen are in good condition, then you may consider upgrading them by, let’s say, adding new handles. Also, chipped laminate or stained tiling grout should be cleaned thoroughly or should be removed and replaced. These changes will give the kitchen and bathroom a really good refreshing look.
If you are considering a complete renovation of both the bathroom and kitchen, just ensure that everything remains as simple and as appealing as possible.
Structural problems – if the property you are looking to renovate isn’t in a bad shape, but not in good shape either, remedying the defects throughout the property should always be at the top of your list. We know there are those investors who may be tempted to simply cover them up, but the truth is, building surveys usually uncovers these faults, and they will deter potential buyers away. In the Budapest real estate market, there is no single seller who would make an offer on such a property.
Increasing natural light – in any property, good lighting makes a huge impression, and it lifts the spirits of everyone who walks into those properties. So, by adding skylights in the dark rooms or just opening up areas with larger windows or bi-fold doors, the chances of that property selling for a much higher price will get higher.
Colors – during renovation, you should always try to avoid feature walls or any other personal color choices, especially given the fact that color is subjective. After all, many homeowners, after buying the property will paint over it. So, as an intelligent investor, you should consider putting up serviceable, neutral and clean walls and everything else, and allow future owners to add their own color of choice once they make the purchase. This makes the buyer feel included in the decision, or rather, the buyer feels that the investor had him/her in mind when renovating the home, and it will drive the sales price up.
Flooring – timber floors are becoming quite common in Budapest, where most people opt to put carpets only in their bedrooms. So, when renovating a property with timber floors, try as much as possible to match the existing floor, or replace the floorboards entirely in order to create a room-to-room flowing effect throughout the house. This will be super appealing to the buyers. In fact, if you do it well, buyers will pay a fortune to have that property.
Basically, the property flipping business in Hungary, Budapest to be specific, is quite common and is very profitable. All you have to do is first conducting a proper research, and once finding the right "candidate", giving it a tasteful touch. This way, you will have a very successful venture.
*We offer off-market raw property investment opportunities in Budapest, Hungary. If you are interested, please contact us directly.