How did Yulia find a successful investment in real estate abroad?

Introduction

Yulia, an entrepreneur from Kyiv, had been searching for opportunities to acquire foreignreal estate for rental purposes for a long time. In 2015, she finally got lucky — she bought an apartment in the heart of Budapest, focusing on short-term rentals for tourists. Currently, Yulia consistently receives a steady income, regardless of whether there are tenants in her property. In this interview, she shares her experience and strategy that have allowed her to achieve such success.

Origins of the idea

— Where did the idea of investing in income-generating real estate abroad come from?

I already had significant experience in real estate management in the Ukrainian market. Before the well-known crisis of 2008, I successfully engaged in buying and selling residential properties, as well as renting out apartments. However, after the crisis, the real estate market in the country became very unstable, and the chances of obtaining reliable income significantly decreased. With each passing year, my trust in Ukrainian real estate diminished, and I began to consider investment options abroad.

Selection of real estate markets

— Which specific foreignreal estate markets have attracted you?

— At first, I considered the Czech Republic and Germany. I carefully analyzed the information about housing prices and realized that real estate in the Czech Republic is quite expensive for me. As for Germany, the high price levels and the costs of maintaining property, including annual taxes and utility bills, made me cautious. Additionally, I had to take into account the income tax on rental income, which would also significantly reduce the profitability of the investment.

Next in line for potential investment was Belgium. I even visited Antwerp to explore possible options. Unfortunately, I found a suitable apartment, but then I decided to shift my focus to another country — Hungary. The trip to Budapest and the review of various properties showed that within my budget, I could find more attractive offers than in the countries I had previously studied.

Impressions of Budapest

- What do you think of Budapest itself?

— To be honest, I had never been to this city before my first trip, and my initial impressions were not very positive: it was constantly raining and cold in winter. I hardly left the apartment and didn't feel like exploring the sights because the city seemed unattractive to me. However, when I returned to Budapest in the spring, the weather improved, and I had more time for walks. This time, I was able to truly appreciate the city. Budapest is best explored in sunny weather, in spring or summer, when it makes the most positive impression.

The process of searching for real estate

— How did you start looking for suitable real estate?

— My search began with specialized online resources that feature various real estate listings. I dedicated a lot of time to studying the market and analyzing prices. I was ready to explore all available options and didn't rush into making decisions.

• I've been comparing housing prices considering different neighborhoods.
• I studied reviews from other investors about the market's potential.
• I discussed available listings with local real estate agents.

Various resources have allowed me to gain an understanding of what I can expect within my budget and which areas are most interesting for investment. This approach helped me choose the most profitable option and ultimately purchase a property that provides me with a stable income.

General idea of the real estate market

I spent time studying both real estate sales listings and available rental options, which allowed me to assess the overall picture of market prices in different regions. Ultimately, I entered negotiations with three agencies, one of which was "Tranio." On the advice of your manager, I decided to collaborate with the Hungarian agency.

Criteria for choosing an apartment

What options did the realtor offer you, and which one turned out to be the most appealing for you? It was important for me to find an apartment in perfect condition, fully furnished and equipped with everything necessary so that I could move in right away. In Budapest, I considered four different properties, and the apartment I ultimately bought seemed to me the best solution in terms of price and quality.

History of previous owners

The previous owners bought the property in the summer of 2014 with the intention of renting it out, but changed life circumstances forced them to sell it before they started using it for its intended purpose. As a result, I got the apartment in a renovated condition and it was fully ready for move-in, with everything I needed, from furniture to dishes and appliances.

Description of the new apartment

My new apartment, which is 70 square meters, is located in the city center, just a two-minute walk from one of the main attractions — the Great Synagogue (nagy zsinagóga). The previous owners remodeled it, increasing the number of rooms from two to three, and moved the kitchen area into the hallway, creating an open space.

Document processing and property registration

How much time did it take to process the documents and register my property rights? After making the initial payment, I had to wait for approval from the local authorities to complete the transaction. This process took two months while I was in Kyiv. As soon as the necessary approval was obtained, I went back to Budapest, where I paid the remaining amount. After that, the previous owners updated the utility payment receipts in my name, and I just had to wait for a couple more months for the property rights registration.

Real estate registration process

All these procedures went smoothly, without any surprises? Some aspects of property registration surprised me a bit. Firstly, in Hungary, owners do not have a purchase agreement or an extract from the land registry in their possession. The contract issued upon completion of all registration actions is only valid for a month. This means that if it needs to be used again, for example, in the case of a sale or mortgage, it will have to be requested again.

It's important to know

• Hungarian authorities do not require official consent from a spouse for the purchase or sale of real estate.
• If a person is not mentioned in the contract, they completely lose their rights to that property.

Conclusion on the purchase of an apartment

Thus, going through all the stages has become a valuable experience for me that I had long awaited. The adventure of buying an apartment has ended successfully, and now I can enjoy my new home in this magnificent city. I can confidently say that every step, from searching for an apartment to signing all the necessary documents, turned into an exciting journey into the world of Hungarian real estate.

Julia's apartment location

Julia's apartment is located in a famous historical district of Budapest, which is popular among tourists, just a few minutes away from the largest synagogue in Europe.

Calculation of profitability

What was her plan for profitability? Yulia hoped for an income of about 6-8% per year, taking into account deductions for utilities and taxes. She approached the assessment of potential income with a pragmatic view and realized that a stable income throughout the year would not be possible, especially in winter, when the tourist flow decreases.

Real estate market research

Yulia conducted a thorough market research on real estate and the pricing process, paying attention to numerous expenses related to renting.

Apartment management

- You don't interfere in any way with the management of your apartment? - No, I am not involved in these matters. I opened a bank account at a local bank and every month the right amount is transferred to it on time.

Language barriers in everyday life

— Have you encountered language difficulties when dealing with everyday matters? — From my own experience, I can say that knowing English doesn't always help in Hungary when it comes to everyday issues. It would also be good to know Hungarian or German.

When opening an account at some banks, I encountered staff who spoke exclusively Hungarian or German. However, the Hungarians did not seem closed off or inaccessible to me.

These are very friendly people.

Cost of living in Hungary

— How do you assess the standard of living in Hungary? — In my opinion, the cost of utilities here is quite reasonable. My monthly housing expenses are about 40–45 euros.

In Ukraine, I would pay significantly more for a similar place. The prices for groceries in Budapest are almost the same as in the supermarkets in my country, with differences of about 10-15%.

However, I found public transport to be relatively expensive — the price for a metro ride is about one euro. Even in winter, the tourist life in Budapest doesn't slow down: travelers enjoy relaxing in the famous thermal baths.

Buying real estate

— Are you planning to purchase real estate in Hungary or other countries? — Yes, I have such thoughts, but I haven't decided on a country yet. I'm considering the possibility of buying a property in a resort area in Spain.

Considering my budget, there are attractive and quality options available. However, I have some concerns, for example:

• Low housing demand in the off-season,
• high taxes on property purchases and rental income,
• the necessity of obtaining a license for renting out property.

All of this makes me think. I'm also considering the option of acquiring another property in Hungary, for example, student housing. For the amount I paid for my apartment, theoretically, I could buy two small apartments that would be rented out to students.

I'm hoping for an income comparable to what I have now.

Collaboration with "Tranio"

— Are you planning to continue your collaboration with "Tranio"? — Most likely, yes. I liked the approach of your employees to their work: they answered any questions, even the simplest ones, were interested in the results of my property viewings, and offered additional real estate options.

I was quite satisfied with the collaboration with the Hungarian agency through which I purchased my apartment.

Conclusion

In concluding the story of Yulia, a private entrepreneur from Kyiv, several key aspects can be highlighted that not only describe her successful experience but also inspire others to take their own steps into the world of investing in foreignreal estate. Every step she took, whether it was market analysis, choosing a country, or searching for the perfect property, reflects a unique strategy based on analysis, experience, and, of course, intuitive feeling.

Julia's project in Budapest became not just an attempt to diversify income sources, but also a culmination of her reflections on the importance of stability and predictability in the market. Her challenging experience in the real estate sector in Ukraine clearly demonstrated to her that successful investments require a deep understanding of risks and opportunities. Moving to a new level, she chose a country with developing tourism potential, which ultimately provided her with a stable income from short-term rentals.

Key aspects of Julia's successful experience:

• Market analysis:A careful study of the potential of various countries and cities.
• Site Selection:emphasis on the quality of the purchase and the readiness of the property for use.
• Experience:utilizing previous experience of doing business in Ukraine to make knowledgeable decisions.

It is important to note that Yulia not only purchased real estate but also redefined her approach to the search process, focusing on the quality of the purchase rather than the quantity of options. This approach allowed her not only to find the optimal choice but also to confidently enter a new market for herself. The exceptional attention to detail that she demonstrated, including selecting an apartment with a full set of amenities, shows the serious approach required for a successful investment.

Lessons from Julia's history:

• Determination:the importance of setting clear goals when starting new investment projects.
• Adaptability:readiness to adapt to new conditions in the real estate market.
• Understanding risks:The realization that investments are associated with risks and may require serious analysis.

After watching Julia's experience, I realize that her story is not just a story about buying an apartment. It is an example of how to set goals, analyze the situation and make informed decisions. It is a reminder that when moving to a new environment, it is important not to ignore all the pros and cons that can affect the final results of an investment.

Julia's story is inspiring and shows that, despite the challenges that may arise on the path to finance and real estate, it is important to maintain determination and resourcefulness. Her experience confirms that realizing one's ideas is possible if approached with an open heart and mind. A true investment is not just about money, but also about ingenuity, hard work, and the willingness to adapt to new conditions, which makes her story truly educational.