This is certainly a relevant dilemma for many families, where the child begins their higher education studies in September. If you are also in doubt, here’s why we recommend renting!
There is nothing more exciting than when you just graduated highschool and get accepted to the university of your dreams. As a new student you have to sort out your living conditions in the capital in just under a month! This can be a stressful, hectic period, as you canu2019t wait for the world to open up before you – but at the same time, you have several matters that require serious attention and focus. One of these matters is deciding where to live. Along with the drastic reduction of the available number of dormitory places, as well as taking into account the risks caused by the coronavirus, you may also have to decide (of course, with the help of your parents) whether to rent or buy a property.
In order to help you, weu2019ll describe two extremely important aspects to take into consideration, that you may have not thought about yet. Buying real estate is a big investment, a serious decision, and often it turns out to be a far from ideal financial decision.
How long would you need the apartment for?
If you know that youu2019re going to live in Budapest only for the duration of your studies, it means youu2019ll only spend a few years in the capital. Back in the old times, it took at least 5 years to get a diploma, which would have cost you 5×12 monthly rents, so if you rented an apartment you paid approx. up to 9 million HUF. Considering the old real estate prices, when for approx. 15 million HUF you bought a small studio apartment, it was then tempting to buy rather than rent.
Today, however, the numbers have changed. University courses have been reduced to 3 years, while property prices in the past 10 years, in some parts of the city – such as the student favored VIII. district Palotanegyed or Belsu0151-Erzsu00e9betvu00e1ros – have grown by more than 180%. Just do the math, you’ll see that the 3×12 monthly rent now is on average approx. 5.5 million HUF, while buying a small studio is about 35-40 million HUF.
How much will you be able to spend on housing per month?
If you buy the property using some financial help, for example with a bank loan, you will have to focus and worry about the loan repayment for many years to come or even decades, which can be financially burdensome, as in some cases the payment can reach up to HUF 200,000. But no need to jump for a loan nowadays, thanks to the affordable premium apartments for rent currently available in Budapest, that just cost slightly more than the monthly rent of an average, old property (brand new designer flats can be found for as little as 150 thousand forints), you can move into a tastefully designer furnished, newly built, with balcony, automatized, high-quality apartment as a tenant – at a significantly lower cost than the monthly loan installments, and with much bigger flexibility. And if you rent an apartment from Flatco, you won’t have to worry about possible maintenance or managing the utility bills: we take care of everything for you!
Thus, if you receive your diploma in a few years, the world will open up before you: if you decide to do so you can move back to the countryside without restrictions, try living abroad, or even stay in Budapest and enjoy the life as a Flatco tenant – the decision is all yours. Good luck!