Guide to Holiday Home Insurance Hungary
Introduction -
Hungary was one of the ten new members of the EU in 2004 and has proved to be
one of the most economically dynamic in its first years of membership. Hungary
has emerged from it communist past as one of the most popular Eastern European
countries in which people by a holiday or second home. This is a beautiful
country with cheap property prices and the cost of living is also a lot lower
than many other countries. The Republic of Hungary is a landlocked country and
located in Central Europe. It shares borders with no less than seven other
European countries; Austria, Slovakia, Ukraine, Romania, Serbia, Croatia and
Slovenia. The country has a wealth of charms and its capital city Budapest has a
lively arts and music scene, it is a popular destination with travellers and is
generally seen as the most important area by overseas property investors. Other
important cities in Hungary include; Debrecen, Gyor, Miskolc, Pecs, and Szeged.
Why Buy a Holiday Home in Hungary? - Property prices have been increase
steadily in recent years and experts predict that this is set to continue,
Hungary is developing quite a healthy buy to let market and this is helping to
move property prices upwards especially in the capital city. Many major
companies (e.g. Electrolux, Nokia, GE) have moved offices to Budapest creating a
major demand in the residential rental market for employees, investors have
latched on to this and many have bought property safe in the knowledge that they
can achieve strong rental yields. Compared with other European cities, property
prices in Budapest are still on the low side and increase of 15% per annum are
still being predicted. Buying property is Hungary is not over complicated and
with the Hungarian authorities committed to joining the euro zone before the end
of 2012, the actual process of buying property is likely to become easier and
this in turn should see prices increase further..
Holiday Home Insurance for Property in Hungary? - Whether you have a
holiday, second or investment home in Hungary, insurance for the property is now
available from the United Kingdom. Cover is available for both buildings and
contents and it is usually possible to extend cover to include liability cover
for letting. As with most countries, there are often rules and regulations
regarding the letting of property and it is always advisable to have your
solicitor check these before you proceed to allow you home to be tenanted.
Overseas insurance polices arranged via the United Kingdom will usually take
care of all the local taxes for you. Hungary is not a country that is regarded
as being beset by natural disasters, it does experience the odd minor earthquake
and the Eastern part of the country has in the past experienced severe flooding.
However, insurance should take care of both of these perils and will almost
certainly be a requirement if you have a mortgage on your property.
The Holiday Home Market in Hungary - At the present moment, anyone can buy a
property in Hungary but you do need to apply for a permit from the
authoriites,When buying as an individual it is usual for your appointed
solicitor to apply to the local municipality for permission to buy as a
foreigner. This is a formality and takes between 4-8 weeks. The usual period is
six weeks and during this period you can look in to arrangements to obtain a
mortgage etc. The permit cost will be in the region of 250 euros. If multiple
properties are to be purchased often it is better to set up a limited company,
your solicitor or accountant should be able to advise on this matter. Offers for
the property are usually communicated to the estate agent or developer via your
solicitor and it is to your solicitor that you pay the deposit of approximately
2000 euros per property. As with many other European countries, a public
notary is required and among his duties will be certifying the buyer's identity
to initiate the permit approval process. You do not actually need to visit
Hungary to start this process, and the process can be started at any Hungarian
embassy or consulate but this is not always convenient, you may have to make an
appointment and travel quite a distance to reach one, also prices for the
service are likely to be higher . The signing of the sale agreement can also be
taken care at a local Hungarian Embassy, it will be notarised and then posted to
your solicitor. If you wish to have the documents signed in Hungary, you do not
have to actually attend in person, you can appointed a representative to sign
then paperwork on your behalf.
So if you are seeking an holiday home insurance quote why not see if we
can help? In addition, Assetsure provide overseas property insurance and
holiday home insurance for other countries including Australia, Austria,
Belgium, Bulgaria, Brazil, Canada, Cape Verde, Chile, Croatia, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Egypt, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Liechtenstein,
Luxembourg, Malta, Monaco, Montenegro, Morocco, Netherlands, New Zealand,
Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, Spain,
Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom
(UK) and Venezuela.
