Return on investment (ROI) on rental property. Where to buy one or three rooms apartment in Budapest (Hungary) or Prague (Czech Republic)?
Budapest Real Estate Club provides the additional service “Property Investment Tour”. We organize an extensive search for suitable real estate options, reviews and visits. Our client then receives invaluable advice, to enable them to analyze the profitability of their investment and estimate the return on investment (ROI).
Are you smart investor and looking for ROI on Rental property in central Europe? How to calculate ROI on rental property in 4 simple steps:
- Calculate your annual rental income.
- Subtract your expenses from your annual rental income. This is your cash flow.
- Add your equity build to your cash flow.
- Divide your net income by your total investment to get your rental property return on investment.
Where to choose a high-yield location in Central Europe? The most popular locations are Budapest (Hungary) or Prague (Czech Republic).
ROI analytic. Why you will get higher ROI if you will invest to Budapest (source numbeo.com, 2017)
Price rankings by city of price per square meter to buy apartment
Budapest: price in city center – 2,480.76 $ per Square Meter
1 room apartment for sale 30 m2 – 74,400 $
3 rooms apartment fro sale 80 m2 – 198,400 $
Prague: price in city center – 4,351.95 $ per Square Meter
1 room apartment for sale 30 m2 – 130,710 $
3 rooms apartment fro sale 80 m2 – 348,080 $
Сonclusion: Real estate prices in Budapest is lower than in Prague at around 43% (per cent). Real estate prices in Prague is higher as in Budapest.
Price rankings by city of apartment in city center (rent per month)
1 bedroom – 492.31 $
3 bedrooms – 910.96 $
1 bedroom – 690.85 $
3 bedrooms – 1,219.77 $
Сonclusion: Rental fee in Budapest is 25% – 29% (per cent) lower than rental fee in Prague.
Total conclusion: You can get your return on investment back in 2 to 4 years earlier if you purchase a property in Budapest.
Budapest: get return on investment in 12 or 13 years
Prague: get return on investment in 15 or 16 years
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