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Hungarians take out ever increasing loans
napi.hu, 1 October 2018 – Banks do not mess around when approving loan applications: clients are notified about the result within three weeks. Despite an ever growing demand there is no congestion in the approval procedure: banks pass their decisions within no more than 15 working days. The processing time of standard mortgage applications submitted to UniCredit Bank is 9 working days, while “client friendly residential loans” are processed within 7-8 days.
Processing is completed within five working days at K&H Bank, provided that a full set of documentation is available. According to CIB Bank processing times have become shorter since the introduction of “qualified client friendly residential loans”.
Almost all banks reported an increase of the volume of loans compared to the same period last year. In 2018 the average loan applied for by clients of UniCredit Bank exceeded HUF 13 million, which is an almost 20 per cent increase from last year. The average loan at K&H Bank is almost HUF 10 million, compared to HUF 9 million last year.
In the crosshairs: the concept of private property
napi.hu, 23.07.2018 – Pursuant to a government decree that entered into force last year with the exception of residential properties and lands of certain zoning categories the Hungarian state has a right of pre-emption over properties situated at world heritage sites. The enclosure to the decree contains the actual list of these properties complete with plot numbers, 80 147 units in all.
Exploiting the ambiguous wording of the decree the municipality of the 1st district of Budapest is registering its right of pre-emption over every non-residential property (garages, retail outlets etc.) although the world heritage significance of a garage or a retail outlet is highly questionable. Such a limitation may even act as a psychological obstacle to a sales transaction because nobody wants to buy an encumbered apartment. To make things worse, garages are usually sold together with the apartment they belong to, which means the right of pre-emption indirectly limits the owner’s free disposal of their apartment.
Points considered by Hungarian residential property buyers
napi.hu, 29.05.2017 – According to a recent survey Hungarians acquire their first own residential property at the average age of 27 and two-thirds of them never move out of it anymore. Two-thirds of those who do move out stay within the same municipality. More than two-thirds of respondents were searching for their new property for three month maximum and one third (30 per cent) needed less than one month to find it. Only 17 per cent spent more than six months trying to find their dream home. The majority of buyers (63 per cent) visit four or more properties but one fifth (19 per cent) bought the first one they had visited. The main aspect to consider when choosing is, not surprisingly, price (66 per cent go by the price and 40 per cent by the funds available), but location (52 per cent) and physical repair (43 per cent) are also important. Only 5 per cent of buyers base their choice on whether the property is new or pre-owned.