Hungary - Budapest Property Market 2011 - Terms and Conditions of Apartments for rent in Budapest

BUDAPEST MANAGEMENT

♦ Principal

			THE MAIN PRINCIPALS OF PROPERTY MANAGEMENT


			PROPERTY INVESTMENT WITH LIFELONG EXPENDING	- Investing into an overseas property has costs while you have
				- The question is not how to to spend as low as you can
				- But how to achiev maximum return with as low extra costs as you can
				- Extra costs are all costs associated with purchasing, letting and selling
				- Because cost of property investment is much more than purchasing price
				Cost Management

			OPERATIONAL EXPENDITURE (OPEX)	- There are costs which are necessary to be covered (OPEX)
				- OPEX do not have added value to property investment
				- For instance, travel expenses, accountant expenses, finder's fee
				- Property Management could be an OPEX unless it is professional
				Expenses without Added Value

			CAPITAL EXPENDITURE (CAPEX)	- Expenditures creating future benefits
				- Future benefits are added values in rental/re-sale potentials
				- CAPEX is essential in Budapest where achievable capital growth is low
				- To improve reasonable returns from investment, CAPEX is to be considered
				- New Model with value adding services is about CAPEX and its benefits
				Creating Future Benefits