Bad News In The Endowment Department: Another Lesson Learned

So, I contacted the real estate agent in Hungary. They’re not even going to try and sell my house there…because there’s currently no market for it anyway. The housing market totally crashed there. So I guess I am stuck with an unsellable house in Hungary and no endowment to invest in index funds.

Oh well…I never included that house in my net worth anyway.

What can I learn from this? Well, my parents bought me this house at the end of the Hungarian housing boom. Apparently, the market soared from 1998 to 2007 and house prices increased 264%. They bought the house in 2005, almost at the height of the market. They were lured into investing in the Hungarian housing market because many investors before them made huge profits. My parents thought they were buying their kids (my brother also has a house there) a good investment for the future. With hindsight it’s kind of obvious they should not have bought at that moment. But….that would be timing the market and that’s always very easy when looking back.

My lessons learned here:

  • If an investing opportunity sounds too good to be true…it probably is too good to be true.
  • Research, research, research!
  • Don’t buy stuff you don’t know anything about
  • If everybody else has already made a fortune…you’re too freakin’ late to join the party!
  • Don’t buy stuff that requires communicating through a foreign language…this causes so much extra costs. Everything my parents want to get done (bills, utilities, maintenance) costs them money, because they don’t speak Hungarian.
  • Invest in REITs instead of becoming a landlord, I don’t want all the fuss. I’m still looking for a nice fund to invest in, since Vanguard doesn’t offer such funds here in Europe.

What would you do? Sell both houses at a great loss or keep them for a while and wait for the Hungarian housing market to rise again?

Love,

Mrs EconoWiser

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2 thoughts on “Bad News In The Endowment Department: Another Lesson Learned

  1. ano

    Ik zou het met je ouders overleggen, voor hen is het meer een verlies. Ben je nog van plan om zelf naar Hongarije te gaan? Zo niet dan zou ik er liever vanaf zijn. Als je het nog een paar jaar aanhoud blijf je ook kosten maken qua onderhoud ed.

    Reply
    1. econowiser Post author

      Mijn ouders hebben recht op vruchtgebruik en nemen ook alle kosten op zich. Dus gas, water, licht, schoonmaak door de beheerder, verzekeringen en weet ik wat meer. Zij willen van al die lasten af en zijn er ook klaar mee. Ik ben er 1 keer geweest, toen was de renovatie nog niet af en heb ik elders moeten overnachten. Dat was in 2006. Het lokt bij totaal niet om daar naar toe te gaan. Ook mijn ouders willen er eigenlijk zelf niet meer naar toe…ze hebben het wel gezien. Zij gingen er jaarlijks naar toe. Ik merk dat het gevoel bij hen om er maar vanaf te zijn overheerst.

      Reply

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