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When can you buy your own apartment?

When was the time to buy your own apartment?

Having your own home is the main desire of many people. There are many places to hear that owning a house / apartment is one of a person’s main investments. It’s already his, it’s an achievement. But renting could be more appropriate at least at first. At least financially, it should be considered.
In this article, I am trying to answer the question when to buy your own apartment.

When can you buy your own house?

When to buy your own apartment? And when not?

As a first step, let’s look at when it’s not time to buy your own apartment. Because, no matter how big a dream it is, to finally not live in a rent or with your parents, there are times when it’s not worth to buy your own home.

Is renting always a waste of money?

Having your own home, even if it has a mortgage on it and is paid for 20+ years, is the desire of many people at heart. It’s a kind of “getting in”. Hence, many see the sublet as a waste of money. Leaving aside emotions, we can easily calculate if we need it and, if so, when we need to say yes to the first apartment. We may will have property, just not right now.

Why ignore emotions, even when it’s hard?

Well, that can be enough to say that the bank won’t be emotional either if you make a bad decision and the contract is terminated. If you look at the sale price of properties under execution, you can see that there is only one goal floating in the eyes of the executor: debt collection. That you will have nothing left? Not an aspect.

“Don’t pay another’s credit”
“What you paid remains yours”

You must have heard that.
Buying your own house is always a big and important decision in a person’s life. But let’s see if it’s really worth it, and if so, when to buy a home.

So which is better to rent or buy? Well, to whom. The following points will help you find your way around:

When is it better to rent a property (i.e. cheaper) than to buy it?

If it’s cheaper, rent it and set aside the remaining amount to buy your own home or anything else that motivates you more (either to study or start your own business). I know it’s hard to find a suitable landlord who will rent out a normal house at a normal price. But it is just as difficult to find a property for sale at a normal price in a normal location with normal neighbors that you pay from a normal home loan.

There are a few cases where you will definitely come out better financially with the sublet.

If the amount to be paid for the rent is significantly lower than the repayment

Suppose you find a property that is rented out “below price”. The landlord doesn’t want to sell, but has to repay the loan on it. Then the loan repayment that is there may be orders of magnitude less than what you would pay now. And you can think of yourself from the difference.

In such a case, you can increase your deduction without committing yourself to 20 years.

If you don’t want to settle there

You may not have to jump into buying an apartment. If you’re just studying but don’t plan on staying there in the city, or you’ve taken a job, but it’s not sure yet that you can imagine yourself in the same place for years, you better hire it.

You can say you buy a property (even for a child) and if so, you will rent it out or sell it. The additional costs and possible tax implications of buying and selling are quite high, so it may not be worth it. And if you want to rent it out, you need to make sure that you, as the main tenant, always stay available even if you live in another city.

If real estate prices are very high

Let’s see when it’s worth renting your home instead. In the case of real estate in Budapest, you won’t find a real estate cheaper than 500,000 HUF / m2, and if you count on a small, 40 m2 panel, the purchase price will start at 20,000,000 HUF. Obviously, if you want more than that, the starry sky is the limit.

Starting costs of buying a property

The most significant costs are for a property

  • Fee to be paid to the tax authority: 4%: here now 800,000 HUF
  • Lawyer’s fee, this variable, should be a very skinny 100,000 HUF
  • Bank start-up costs, let’s look at the bottom (disbursement fee, notary fee, etc.): 50,000 HUF
  • possibly real estate brokerage fee, work now also quite cheap, 3%: 600,000, – HUF

So we are talking about 1-1.5 million forints (5-7% of the real estate price) among friends, so that the property is not yet in our possession, it may be necessary to be renovated. A cleanliness painting can also be a significant item even if you do it yourself.

Although the apartment prices are high, the above 40 m2 panel can be rented for roughly 100-150,000 HUF / month. (And you can have your own apartment, when it is more suitable for you)

The price of the apartment

Let’s look at a basic example, just for logic:

  • Starting costs: HUF 1,500,000
  • Sublet: 150,000 HUF / month (if you rent it out alone)

So: the apartment is sure to be renovated, run-down space is not given for that much, and it may be furnished. If you don’t have furniture yet, add it to your start-up cost to suit your taste.

In the picture below you can see the development of apartment prices. An „office ad” does not mean to advertise an office, but a real estate agency. Please note that although it appears that they have barely increased, according to the CSO’s records, the size of the properties offered for rent has decreased. So you can get a slightly smaller apartment a little more expensive than a few years ago 🙂 So I think the above 150,000 forints cost it completely.


Changes in renting
Source: CSO

By default, you would pay the start-up cost to the landlord in 10 (or more) months if you rent the whole thing all by yourself. However, this is not a lifelike example for everyone, so I would rather look at the 2-5 year period. In the case of staying in the area for a shorter time, you should rent it. If for a longer period of time, think about the next point.

If you overburden your own budget

When you want to buy a house / apartment in a city, especially in a big city, to have your own home, it can cost a lot of money, which you may not be able to buy from your existing income. It is also possible that you will save years, if not decades, only on your deductible. Then even if your income can be burdened, a monthly effort would be a special effort. Then don’t buy, but rent.

Housing market prices 2019-2020
Source: CSO

The picture above shows the development of real estate prices. You can see that they may react completely differently over the same period. Therefore, wait with the purchase if the particular property would be too expensive for you. Either look at other areas or wait for the situation that work out better for you.

You don’t have the ideal property for you yet

Rent even if only temporarily if e.g. the move is necessary because of work, but you have not yet found the property you would like to move into. This is the less bad. Although you will have to pay the rent then, but if you are not moving into the ideal property for you, it is another cost, a move and an annoyance. After all, you don’t buy your own home for yourself for a few months, but even for decades. And don’t rush into that decision, think about what’s best for you.

There are 8 points you should definitely consider before buying a property. Especially before you take out a home loan.

When is the time coming? When to buy your own apartment?

Buy your own home once you have the stability

If you have a good and stable income from which you can afford to buy a good property, in a good location, with good neighbors and after it you still have money, buy it.

Buy if you are no longer a novice entrepreneur but are not yet an investor

The entrepreneur likes to take risks. If he sees a good opportunity, he will strike at it. Your own home is not an investment, but a “savings plan” for the future. Think of your residence as your savings account. So anything can happen in your business, put some aside, don’t necessarily turn everything back into the business.

If some grain of sand gets into the machinery and you can’t pay the mortgage, you’ll find yourself on the street very soon.
Let’s say entrepreneurs are creative enough to find a way to make money. (entrepreneurs, on the other hand, are often overly optimistic)

Your property is practically a kind of buffer for hard times. Provided there is no credit on it that makes a beggar from you. If all the ropes are torn, you can exchange the house for a smaller property by value negotiation. You bought this home as a good buy, if there is a problem, you sell it at a realistic price.

To avoid having to play the biggest card right away, it is useful to build up an emergency reserve.

Buy if you are financially successful

No, it is not the ego-dictated “Of course that I am successful!” I’m talking about attitude. Believe me, you will see from your balance sheet whether it is or not.

Buying your own home has a psychological advantage. You know there is a place that is yours that you plan and organize the way you want. But know that this is not an investment, and don’t even consider it that way.

Is it an investment if you buy your own apartment?

People think of their own apartment = investment, in fact, it is considered as one of the best investment. It starts from the fact that everyone needs to live somewhere. Whether it small or large, you need money to have a roof over your head.

And if you don’t pay someone a rent to live in a house and so you don’t have to pay that money, they say your home is an investment. (After all, you keep your money, as if it always brought that much) Not completely.

Why do people believe that their own home is an investment?

Your loan repayment, at least part of it, is built into your own home, which is an asset. While paying the rent goes “in the trash”.

Many say your home is an investment because

  • the price of real estate always goes up. If you buy a house for 10 million forints, you can sell it for 20 million forints in 10 years. (That’s not what I said, no customer can hear that from me. What goes up can go down.)
  • if you want to buy something big like a vacation home, a boat, or whatever, you can go into the bank at any time and use your house as collateral to get a loan and buy that boat (which you can’t afford anyway).

It’s based on great marketing text to make your life the most important investment is your house. The beginning is true to be the most important, but is that an investment? It’s pretty much like the optician saying a good pair of glasses makes you smart, after all, many smart people also have glasses.

If they can convince you that your home is an investment, it will be much easier to persuade you to buy a larger home, which you may not really be able to afford. Thus, in the long run, it burdens rather than lifts.

How do you define an investment?

If you think your investment is that

  • you paid a lot of money as an advance,
  • every month, you pay off your loan without skipping,
  • every time something breaks or breaks, you fix it
  • if you want to remodel the kitchen, you pay for it,
  • if you just want to protect its condition, you still pay for it,
  • you pay property taxes, utility bills, all for the next 20 years, in the hopes of making a profit,

you would rather watch something on YouTube.

I think investing is easier than that

When you buy something with the sole purpose of making money or increasing something. If you do this well, you don’t have to wait 20 years for a return.

Did you buy your house for investment purposes?

If you still don’t believe it, go out to your inbox and see what’s in it. Invoices and advertisements. Did you get money from your house? No. Because you didn’t buy it with investment intent.

If you buy your house with the intention of investing, you will receive checks and advertisements in the same way, but you will also receive a rent that will cover the expenses, and if you do well, you will still be left with it.
Having your own house comes with expenses and responsibilities, but no revenue. I’m not saying just rent an apartment from this moment, just know that not everything is an investment you buy. I also have clothes, a phone, a car, etc. There’s nothing wrong with buying things, or with having expensive or just luxury things, as long as you can afford them.

Rather, live in a smaller place for a few years, if necessary in a sublet, put in a good place the extra money that will be freed up in this way, and then in a few years go and buy your dream house, which you can now afford.

I have already shown the same logic “in small” in the car example.

Do you want to profit from real estate investment?

It’s a great idea to increase your wealth by not working extra hours. You need to understand real estate like any other investment if you want to make a profit on it. Here are 6 reasons not to invest in real estate.

If you don’t have the expertise, time, mood, etc. to deal with running even just one extra property, but still want to make a profit in the real estate market, then choose a real estate fund. That’s when you invested in real estate, and not even in one, but in one step in a lot, and you don’t even have to commit many millions of forints.


Having your own home is an important issue in life. Whether it is on your own, on credit, or in a sublet, it definitely requires a financially sound decision.

No matter where you live, don’t spend more than 20% of your net income on your house.

I know if you go to a real estate agent, he will say something else (yes, he will get a commission after the sale price). You run into any bank, you are asked how much your family’s income is, and based on they say that up to 40-50% of your income can be burdened with credit. I’d rather say 20% or even less. Why? Because your home is not an investment.

If one half of your income is taken away by the bank and the other part is spent on maintenance, what is left for you? Where can you run if dust gets into the machine?

Use your remaining money to invest in something else, or buy another property and put your money there instead (the second property that has already been released can extract itself).


  1. How did you choose your own home?
  2. How do you look at your home as described above?
  3. What do you think about the 20% limit mentioned above, why it was made, and why exactly it is 20%?

You can contact us here with your question and I will be happy to read your post in the social media comment.

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