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drbubb

Merits of living in Budapest & Eastern Europe generally

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Very nice.

I like the garden space in back.

You could put a nice Aquaponics set-up in there

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Wow, that's cheap!

 

What about a place like this?

 

Lat.png

Wow, that's cheap!

 

What about a place like this?

 

Lat.png

something like this is still quite expensive I guess this would be aroung 200,000 USD there is a bit of an over supply or apartments and an undersupply of large family houses, I think it would cost this much to built a large house like this, also this house is in what is considered to be on the" nice side of town" it will also come with its own access to the lake.

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Grayphil,

I think I recall that your wife is Latvian, is that right? Does that make it easier to own property?

 

How do you cope with the language, culture, and legal matters, if you don;t mind me asking?

 

Yes thats correct DrBubb, good memory! Language ive had to learn because her parents dont speak English, however for all the younger generation they are required to speak English, for instance you could go out to any restaurant or shop and the staff are all required to speak English. I do however always start speaking Latvian and the conversation always gets changed by them into English!!

the culture is similar to the UK, just drinking more Vodka at parties instead of beer, (more headaches for me)

Finally legal matters are all taken care of by her best friend who is a solicitor.

 

Anyone can own apartments and I think houses, but agricultural land can only be bought by Latvians, this is set to change in 2014, im trying to aquire as much as possible before this date as farmers from holland/germany are already starting to look around

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Merrill's opinion - do they ever get it right?

 

Hungary: a market to avoid, a big Underweight - BofA Merrill Lynch

 

November 22, 2012, 11:21 am hu.gifHungarian version

 

ures.gifDue to the latest measures leading to higher taxes and other reasons, Hungary’s already challenged equity story could come to an end, but many investors remain optimistic and do not realise that unless we get the stars aligning, in due course Hungary can demonstrate why it is probably one of the riskiest markets in the world, said research analysts at Bank of America Merrill Lynch, in a note where they describe the country as "a market to avoid - a big Underweight."

 

In a trip note published in parallel with this one Raffaella Tenconi, economist at BofA/ML in London, lowered her 2013 GDP estimate for Hungary to -0.3% from +0.8% previously. She believes the country cannot afford the luxury to not striking a credit deal with the IMF/EU and emphasised that the longer an agreement is delayed, the more likely it ultimately fails to deliver the confidence that is needed.

 

The analysts believe that even if Budapest inks a deal with the lenders, it is only likely to stabilize markets but it’s unlikely to change the growth outlook unless it also delivers confidence that Hungary is through the worst both economically and on a policy basis. In Tenconi’s view, a "weak" central bank (NBH) Governor to replace Simor would set the floor for the policy rate at 5.00% despite the severe weakness in the economy, as this would weaken market confidence and put pressure on the currency. A strong governor, with anchored fiscal policy, may be able to bring the policy rate to all-time lows of 4.00%

. . .

"With Hungary’s recent policy history and its lack of flexibility due to the scale of currency mismatch in the consumer sector (ie no potential for a devaluation to drive growth is a disappointing similarity with Greece). Unless we get the stars aligning, in due course Hungary can demonstrate why it is probably one of the riskiest markets in the world."

 

MPC "acutely aware of the risks"

After a recent trip to Budapest Tenconi noted that the majority of the Monetary Policy Council sees a "compelling case to lower interest rates given the continuing recession and no evidence of second round inflation risks at this stage."

 

That said, she maintains the view that the MPC is "acutely aware of the risks to financial stability from unexpected exogenous shocks and significant fluctuations in the currency." Therefore she believes the rate-setters will thus likely maintain a "clear easing stance as long as the currency and the bond market remain stable."

 

She added that the nomination and appointment of the next NBH Governor, who will replace András Simor, will affect the speed and magnitude of the monetary easing ahead.

===

/more-News-etc: http://www.portfolio...ynch.25174.html

 

121128jobless05.jpg

/more charts: http://www.portfolio.hu/en/economy/rise_in_hungarys_employment_stops_in_aug-oct.25204.html

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Conicidence? It must be.

We are planning a trip for early next year, & today's South China Morning Press magazine has an article:

 

Hungary for More - by Tim Pile

Budapest has enough heritage to satisfy the most voracious of culture vultures

 

EXCERPTS

=========

+ Boasting two World Heritage sites, and a profusion of historical monuments, Budapest is one of the Europe's most beautiful capitals

 

+ (chaos & "unsavory characters" at the Keleti railway terminus)... "once clear of the station, things improve immediately"

 

+ Despite widespread grafitti and a soundtrack of police sirens, Budapest is a relatively safe city. Elderly couples ambkle along, arm in arm, late into the evening

 

+ House of Terror Museum: "popular with foreign tourists, but few Hungarians visit"

 

+ Art-noveau Central market Hall: "Tourists head upstairs to bargain in Euros for Chess sets and lace tabelcloths"

 

+ "It's about money here, just like in Hong Kong. The only difference is, here nobody has any."

 

+ Margaret Island (no cars): "A tranquil green space"

 

+ Szechenyi Thermal Baths: "where the average age is about 60 and no one is doing anything more energetic than playing chess... Mineral-rich water... is a skin-shriveling 38 degrees Celsius."

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If You Like Late Nights, Try Being an Analyst in Hungary

 

Nation's Big Companies Release Results After Midnight; Studying in Pajamas

 

BUDAPEST—As the clock ticked toward midnight on a recent night, stock analyst Gergely Gabler sat sleepily in his pajamas at the small desk in his bedroom, waiting. Then, just after 12, he sprang into action, evaluating the newly released earnings report of Hungary's largest bank.

For the next two hours, Mr. Gabler worked on a report about OTP Bank's OTP.BU +2.69% performance for clients of his firm, Hungarian brokerage Equilor Investments, before catching some shut eye, only to awake about 3½ hours later so he could be in his office to field questions by 7 a.m.

. . .

Hungary's biggest energy company, oil producer MOL, MOL.BU +3.90% and pharmaceutical giant Richter Gedeon RICHTER.BU -0.35% also post their results just after 12 a.m. local time, which is 6 p.m. in New York.

That means late nights in newsrooms and brokerages. Business newspapers try to get the stories online in the wee hours about the results of the country's most important companies, while analysts scramble to get reports out before their local clients wake up.

. . .

Still, Hungarian market veterans said, it is better than the old days.

When Concorde's Mr. Gyurcsik started in 2006, Magyar Telekom sent its reports out at midnight—by fax machine. Trying to decipher the fuzzy columns of figures while bleary eyed in the middle of the night was a challenge, he said.

In the early days of Hungary's transition from communism to a market economy, reporters and analysts had to line up at newspaper stands in the middle of the night to wait for copies of the official gazette, in which publicly traded companies first published their results—a practice that ended in 2001.

"That was especially lovely in February," remembered Gyorgy Marton, a correspondent at the time with state-owned news agency MTI.

===

/more: http://online.wsj.com/article/SB10001424127887323622904578128973276482266.html

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Conicidence? It must be.

We are planning a trip for early next year, & today's South China Morning Press magazine has an article:

 

Hungary for More - by Tim Pile

Budapest has enough heritage to satisfy the most voracious of culture vultures

 

EXCERPTS

=========

+ Boasting two World Heritage sites, and a profusion of historical monuments, Budapest is one of the Europe's most beautiful capitals

 

+ (chaos & "unsavory characters" at the Keleti railway terminus)... "once clear of the station, things improve immediately"

 

+ Despite widespread grafitti and a soundtrack of police sirens, Budapest is a relatively safe city. Elderly couples ambkle along, arm in arm, late into the evening

 

+ House of Terror Museum: "popular with foreign tourists, but few Hungarians visit"

 

+ Art-noveau Central market Hall: "Tourists head upstairs to bargain in Euros for Chess sets and lace tabelcloths"

 

+ "It's about money here, just like in Hong Kong. The only difference is, here nobody has any."

 

+ Margaret Island (no cars): "A tranquil green space"

 

+ Szechenyi Thermal Baths: "where the average age is about 60 and no one is doing anything more energetic than playing chess... Mineral-rich water... is a skin-shriveling 38 degrees Celsius."

 

That could be one of what I call life signs.

 

Sounds like you could live like more of a king there, with your wealth, although I'm not sure whether that's part of the attraction?

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That could be one of what I call life signs.

Sounds like you could live like more of a king there, with your wealth, although I'm not sure whether that's part of the attraction?

 

No need to "live like a king".

But living well on little money, when chaos develops would be okay, so long as it is safe.

It is hard to assess the risk without being there

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Well after reading this thread in November I've booked to visit Budapest and Vienna in April. I'd also like to take a trip out to Leipzig at some point.. maybe in the second half of the year. German property has interested me for some time and I was actually looking at Berlin in 2009 but sadly didn't go through with it.

 

Does anyone know of any property funds which may offer exposure to some of these places? The ones I've found all seem to have a heavy UK weighting which doesnt really interest me.

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Budapest - beautiful city; although some buildings still have bullet holes (?) from the past great wars? I'm not sure, but there are many historical, buildings.

 

---

 

One must visit the outdoor baths.

 

budapest-baths.jpg

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Does anyone know of any property funds which may offer exposure to some of these places? The ones I've found all seem to have a heavy UK weighting which doesnt really interest me.

 

LSE:EEP Eastern European Property Fund Ltd

http://www.eepfl.com/

 

Romania, Bulgaria, Turkey

 

---

 

LSE:PHU Pactolus Hungarian Property (Note - this has a market cap of £3m so this is extremely risky, and I am just monitoring it for now)

http://www.pactolus.co.uk/

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Well after reading this thread in November I've booked to visit Budapest and Vienna in April. I'd also like to take a trip out to Leipzig at some point.. maybe in the second half of the year. German property has interested me for some time and I was actually looking at Berlin in 2009 but sadly didn't go through with it.

 

Does anyone know of any property funds which may offer exposure to some of these places? The ones I've found all seem to have a heavy UK weighting which doesnt really interest me.

 

Check out Cordia Sun Resort, on the Corvin Promenade while you are there.

It is a new development "in the centre of Budapest."

 

Seeing some information on it at a HK property show was the main thing that inspired me to start this thread.

And I may get there, to consider buying a property in that development eventually.

 

If you are interested, send me a PM, and I can give you a contact at the developer's office

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