Budapest Property Prices 2045 (The Calculator Test)
Do you hope to make that bold move but fall short a little in confidence? I've been on the recent journey of putting down what I've learned into a new book designed to help other people get on the right side of rising property prices. But why would you buy anywhere, including Budapest? You're taking on the responsibility of a property, and renting instead of owning is more flexible, right? Scour any estate agent's website for a few minutes and you'll see that there are a range of two room apartments in Budapest right now advertised for sale at between 25 and 30 million HUF. Then is it worth making the jump? Need motivation? Try this insightful little exercise. I've got my laptop's calculator up on my screen; grab your calculator too... we're going to do a compounding calculation.
So let's say you've worked your ass off to achieve the goal of buying a property. Tap 25 into your calculator, as an example of today's price. Now, prices of property in the long term see average rises of roughly 5-10% per year (perhaps even more in a capital city). But for the purpose of this post let's be conservative then, and use 6%. Multiply the 25 on your calculator screen by 1.06. Now press the equals sign 30 times... bang bang bang bang bang. What's the figure you get? 143 million HUF? Me too. Together we've just arrived at, based on this compounding of yearly rising values, a logical view of what you could pay in 2045 for that apartment you see in the estate agent's window advertised at 25M today. Crazy? Whether you like this or not, it pays to plan ahead. Look at the future as your opportunity; position yourself ready for it.
Lightbulb moment? Then head over to the How to Buy Budapest Property Facebook group, join our positive community and continue the discussion.
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About the Author: Martin Green is a British writer of fiction and non-fiction, and UK employment law specialist. He is currently busy building a new international property blog, and has run The Peanut Society of Lucubrators blog since 2012. His next book for publication will be his completed debut novel, spanning eight European countries, about two men's struggle to find full-force friendship in our times.