Kenway – Why is it a great choice for Real Estate Investment?

If you are looking for investment opportunities, there are numerous options available for where to put your money. Stocks, bonds, mutual funds, and real estate can all be considered good investments. In this article, you will learn about some key aspects of real estate investment and the role Kenway Real Estate plays in helping you make the right choice.

Real Estate Investment

Investing in real estate requires a thoughtful, professional strategy, and Kenway Real Estate can assist with this. Properties can be purchased with cash or in a form where only a portion of the total cost is paid at the time of purchase.

A well-grounded property purchase offers a high chance of the investment being returned with substantial profit.

There are two types of returns to expect from real estate investments: one is the increase in property value, and the other is rental income.

The increase in property value is well demonstrated by the data from the Central Statistical Office (KSH). In 2015, the index was 100%, and by the first quarter of 2023, the combined housing market index had reached 262.2%. Additional property value increase data can be found on the KSH website.

Regarding rental income, considering 2015 data from KSH as 100%, the Budapest rent index reached 168.5%. The following graph clearly illustrates the changes in rental prices.

Source: KSH, 2023

However, in order to maximize these returns, we must pay attention to the factors that impact investments.

There are several factors to consider when making a purchase, and an expert experienced in real estate investment can be of great help in this regard.

In Hungary, the rise and high level of the central bank’s base interest rate can lead to significant amounts of money being tied up. In such a market environment, real estate investment presents a good opportunity.

Real Estate Investment Advantages:

• Property value appreciation – Based on recent data, property value growth can be considered stable in the long term (KSH, 2023).
• Regular income from rental – This can be in euros or other currencies for foreign properties.
• Capital maximization through leverage – Favorable loan options for new investors.
• Opportunity for active investment monitoring.
• Stable, predictable income – Income from the property gradually increases.
• Property as an inflation hedge.
• Opportunity to invest below market value.

Real Estate Investment Disadvantages:

• Challenges in tenant management.
• Financing damage caused by tenants.
• Reduced income during vacant periods.
• Potential negative effects of leverage.
• Decreasing rental rates (can be mitigated with appropriate legal frameworks/contracts).
• High transaction costs (commission, loan fees).
• Long-term investment.
• Maintenance requirements.

To mitigate some of the possible disadvantages of rental income, it is advisable to hire a professional management company to handle the properties.

Kenway Real Estate Investment Advantages

When it comes to real estate investments, it’s important to turn to an expert who closely monitors market trends. Kenway Real Estate operates in several countries in the field of real estate investments. The office has several features that are advantageous for investors.

Kenway – Exclusive Environment

The office is located in an exclusive area in the heart of Budapest, on Sas Street, catering to those interested in real estate investments. Both foreign and domestic investors can easily find the office, which is situated near the Basilica. For those arriving by car, there is a parking opportunity in the Basilica underground garage, just a 2-minute walk away, where they can park their vehicles during the meeting.

Kenway – Professional Team

The Kenway team consists of ten members, alongside the owner. They welcome clients, assist with legal processes, and accompany clients to available properties in Hungary.

For foreign properties, the team assists with detailed brochures to help with the decision-making process.

If needed, they do not let go of clients’ hands even abroad. Together with their foreign real estate partner, they accompany clients on property tours and provide legal assistance in Hungarian.

In the process of purchasing foreign real estate, the work of foreign property partners strengthens the entire process. The office’s portfolio includes properties in Spain and the United Arab Emirates.

Kenway recently acquired the exclusive sales rights for Turkish properties in Hungary. More information about Turkish properties can be found here.

In addition to the work of the office staff, many specialists work behind the scenes on property renovations and maintenance.

Kenway – Legal Background

One crucial aspect of real estate investment is clarifying legal issues and preparing related documents. When purchasing real estate for investment purposes, it is important to be aware of tax-related matters, such as tax rates, stamp duties, and personal income tax schedules.

For businesses, the costs and their accountability can also be significant. Inheritance-related questions arise with every property purchase and should be settled legally at the time of purchase.

Legal matters related to real estate investments are never simple and require attention and careful legal procedures at every purchase. Even a registration error revealed during a Land Registry process can significantly delay the transaction.

For legal assistance, Kenway Real Estate relies on the law office of Dr. Olivér Király to handle the entire legal process.

Kenway – Mortgage Consulting

For those interested in financing their property purchase through a loan, Kenway Real Estate offers access to mortgage consultants. The supply of properties for sale on the domestic market is increasing, which puts buyers in a better negotiation position. It is worth considering the loan option for a selected property since rental income can cover the loan repayment.

In Hungary, there is also a favorable Kavosz loan option available for start-up businesses.

For foreign property purchases, it is also recommended to review both domestic and foreign loan options.

Kenway – Property Leasing and Management

When renting out properties, professional advice on lease contract details can be helpful. Kenway Real Estate assists its existing clients and new prospects in this regard as well.

Operating investment properties can present a serious challenge. For those who do not wish to deal with the details of renting, the office offers property management services.

However, it is important to note that this service is only offered for properties developed by Kenway Property.

Within this framework, the Kenway Real Estate team prepares the necessary documents and handles the daily rental tasks.

The management includes continuous contact with all utility providers associated with the property—electricity, gas, water—as well as the homeowners’ association.

In case of a mandate, the office represents the owner’s interests at the homeowners’ association meetings and also handles the current tasks related to property insurance with the insurance companies.

The office collects the rental payments from the tenant. If the tenant changes, the office manages the move-out process, prepares the handover document with meter readings, and settles with the tenant accordingly.

In case of tenant search, the office contacts real estate agents and assigns them a mandate. Kenway Real Estate also participates in property tours and signs rental contracts with the chosen tenant.

Property owners can stay up-to-date via a virtual service platform, which provides them with transaction protocols, related statements, and rental contracts.

By handling these tasks, Kenway Real Estate takes all rental-related duties off their clients’ shoulders.

Kenway – Property Maintenance

Real estate investments require maintenance, which is where the office provides assistance. Kenway works with several professionals to efficiently and quickly address emerging mechanical, aesthetic, and other property-related issues.

This is especially important when a tenant causes damage to the property. In many cases, such damage can prevent the property from being rented out again.

Before making a real estate investment, it is advisable to request a free consultation available at the Kenway Real Estate office.

Contact us here.