Everyone talks about buying a garage like the shop of the year. In the capital, garages can be bought for 1.4 million, which, if released, could yield up to 7-8 percent yields, according to an analysis by OTP Mortgage Bank. But what are the risks to the business, and what if we were to borrow from it?

Why Buy a Garage for Better Investment?

Why Buy a Garage for Better Investment?

One of the factors is the increasing expansion of paid parking zones in Budapest, even in the outer districts. In addition, the M4 subway was accelerated: the XI. District Council that a parking fee will be charged in Őrmező, near the South Buda terminus of metro line 4.

The other metro terminals can be expected to appreciate garages and parking spaces, for similar reasons: a few weeks ago, the extension of the toll zone at the X., then XIV. district municipality.

“Buying garages for investment purposes is also advantageous because they can usually be rented out longer (without a summer break) than homes, and have little to do with them, and are almost not depreciated,” adds Valkó Dávid. According to him, mainly garages that are close to the city center or subway stops, which have pay parking and hard parking spaces, or covered, heated garages, preferably in new / innovative condominiums, are easy to rent.

As he says, nearly two-thirds of the traffic was in districts XIII, XI, XIV and III in 2012 and 2013. Among the county seats in this period Debrecen and Szeged had the most garage sales – the average price was 1.6 million forints. “At the highest prices, for an average of 1.7 million forints, parking spaces sold in Miskolc,” says a senior analyst at OTP Mortgage Bank.

Even worth a loan?


The mortgage repayment of a HUF 2 million mortgage loan with a 10-year maturity is around HUF 22-25 thousand. So you can even manage the revenue from renting a garage. However, a personal loan with a shorter maturity and a higher interest rate can be applied for at a much more expensive rate of HUF 2 million over a five-year term with a repayment installment of HUF 50,000.

If you want to invest in a garage but need a large amount of credit then you should definitely consider mortgages, but be sure that most banks will not accept the garage you want to buy as collateral. Be sure to include another property.

If you only need a small percentage of the purchase price

If you only need a small percentage of the purchase price


A personal loan can be a good idea as the interest rate is high, but the initial cost is much lower than these schemes, so the total cost of the loan is easier to manage. Especially if we find a tenant for the garage right away.