How ironic that pretty much all the facts and headaches outlined above (or below i guess) I have also experienced. I own 2 flats, bought, renovated and in theory at least rented out.

However, sadly my caution is for the way over-valued and over-hyped Budapest. Same rules apply - avoid UK agents/touts. Their interest is to bubble the market, and you the investor with little knowledge other than their eager words, are easy bait.

Steer well clear for several years of Hungary (and of course Bulgaria). It's not so much the money that you'll inevitably lock into a downward spiral (afterall, you'd be a fool to part with more than 100k pounds in Budapest), but it's the headaches, paperwork and bonds which will prevent you from walking away. A bitter flavour that washes out slowly.
Martin.