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How much does it cost to purchase a home 10-15 m2 bigger than our current one?

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Those who move into a home with a larger total area than their previous one are accounted for a segment of the pre-owned real estate market. In Budapest, the average price per m2 in case of flats between the sizes of 30-49 m2 was 432 000 HUF at the end of May, whilst in case of 60-79 m2, it went up to 408 000 HUF. The average prices per m2 are considerably lower in larger towns in the countryside, by 50%. Based on these figures, it costs approximately an additional 4-6 million HUF in the capital, and 2-3 million in the country to move into a home that is 10-15 m2 bigger. This can be acquired by a 4-6 million housing loan with a duration of 20 years, which results in a monthly installment of 24-43 000 HUF, as reported by ingatlan.com.

The increased activity on the pre-owned housing market is partly a result of families moving to bigger properties, for reasons such as the arrival of a new family member. Purchasing a flat with a larger total area requires additional funds, the amount of which differs in different regions. Smaller – below an area of 50 m2 – homes have a higher price per m2 compared to slightly bigger ones – between 60 and 79 m2. The countrywide average price per m2 in case of flats between the sizes of 30-49 m2 was 365 000 HUF at the end of May, whilst in case of 60-79 m2, it went up to 294 000 HUF, as shown by ingatlan.com’s recent report. The advertisement portal examined more than 4000 adverts placed by private individuals, about homes between the sizes 30-49 m2 and 60-79 m2 situated in the capital and in country towns with a population bigger than 10 000.

 

The status quo in Budapest

According to ingatlan.com’s data, the average price per m2 for flats between the sizes of 30-49 m2 in the capital reached 432 000 HUF at the end of May, in comparison the same average for flats 60-79 m2 of size was 408 000 HUF. “According to the supply market’s figures, an average price for a smaller flat around 45 m2 of size is 19.4 million HUF, whilst it’s 24.8 million in case of a 60 m2 flat; however, prices may greatly vary in the capital depending on the districts and on the state of the flat” – commented László Balogh, ingatlan.com’s leading economy expert.

Mr. Balogh reckons that the fact that smaller housing have a higher average price per m2 (by 6%) can be explained by the lower purchase prices and the more varied demands: besides buyers who plan to acquire these properties to put them up for rent, those who plan to move to the capital and university students are also present in this segment.

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The status quo in the country: similar but also different

As shown by ingatlan.com’s report, the situation is similar in towns with county rights with regards to higher average prices per m2 in case of smaller housing. “The average prices per m2 in towns with county rights are 222 000 HUF in case of flats with an area between 30-49 m2, and 204 000 HUF in case of larger ones with an area between 60-79 m2” – added the expert. According to Mr. Balogh’s opinion, savings of 4-6 million could be needed to move into a bigger home (with an extra 10-15 m2 of space) in the capital, while the same could be done in the countryside with 2-3 million of additional funds. This could be enough to buy a flat that has one extra room or considerably larger spaces. Due to the average prices being generally lower in the countryside, 4-6 million Forints could be enough to buy a home 20-30 m2 bigger than the previous one.

 

Loans and leases

Péter Gergely, BankRáció.hu’s loan specialist added that currently, considering the lowest interest rates, a 4-6 million HUF loan’s Annual Percentage Rate in case of a floating rate changing every 6-12 months could be lower than 4%, which would result in initial monthly installments of 24-36 000 HUF. It is recommended to compare the offers of various banks, as with a more affordable housing loan the total amount of money repaid can be several million Forints lower compared to less rentable constructions.

Mr. Gergely thinks that clients should also consider fixed installment loans, which are slightly more expensive, but grant much more stability. A fixed installment loan of 4-6 million HUF for 5 or 10 years – with a duration of 20 years in total – has an APR of 5-6%, which results in a monthly installment of 24-43 000 HUF fixed for 5 or 10 years.

 

(Source:  http://realista.hu/ingatlanpiac/mennyiert-lehet-lecserelni-a-lakast-10-15-negyzetmeterrel-nagyobbra/130895)

 

Related articles:

Property Prices Skyrocket throughout Hungary

Regional Differences in Hungarian Property Prices in 2016

What does the youth’s ideal home look like? A new era on the housing market: will there be a boom?

 

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