The Government Support Family Benefit (CSOK) Program has recently raised the interest of several Hungarian families, especially since the 10+10 million HUF allowance was announced in December 2016 in Hungary.
What can be purchased from the 10 million HUF?
- a new-build apartment
- a minimum 60 m² apartment
- a 90m² house
Buyers should think long term
It is not a realistic goal without any own contribution or the plus 10 million HUF loan in any part of the country. If a family of five purchases a 60 m² apartment, it is also worth considering that according to the rules they need to stay there for a decade.
A property may not be found everywhere from the 10+10 million HUF benefit
- Properties can still be found in Pest county within 20 million HUF
- In Budapest the suitable properties are more expensive than this. In the capital the supply has also remained tight, which can only change in half a year at the earliest according to construction industry experts but only if there will be enough human resource for the constructions. Till then price growth may come and then after the decline of the supply prices may even drop.
- Nice homes can be bought from the lower benefit in chief county towns. If moving is needed, one needs to consider the local employment possibilities.
- Properties may be the cheapest in smaller villages, farms or agricultural areas, buyers had better choose used properties in central areas with better infrastructure instead. Even if the energetic condition and the value of these properties are not so high, it could be a better choice than properties in very remote places. Basic facilities such as jobs, health centres, schools, kindergartens and shops are not in easy reach there, which may harden family life for the coming decade.
Another reason for buying a used apartment could be that used real property market remains less influenced by the gradual rise of price in the real estate market.
(Source: http://www.atv.hu/belfold/20160306-csok-ingyenmilliok-es-mas-mellekhatasok, by the editor of the blog ”CSOK Otthonteremtési Kedvezmények”)
