For people who have the resources, a great idea would be to invest in a house in other countries. This is a great idea if the exchange rate is favorable and if the appreciation of real estate in that country is very attractive.

One country where you can consider investing in a house is in Greece. The Mediterranean country is one of the most favorite holiday hotspots on earth and it would be a great acquisition to get a house there not only for the investment that you will get but also because you can use it as a vacation house.

CHOOSING PROPERTIES IN GREECE

Before you do buy a house in Greece though it is always a good idea to read up and research on the country and on the specific conditions that surround buying real estate in the country before you actually commit and shell out your money for a house.

The good news is that there are so many different kinds of properties now available. The real estate industry has really boomed in Greece and due to the large demand from people who wish to retire here or buy a summer home, property developers are rushing to create various kinds of dwellings to suit every budget and personality. You can choose from cottages, villas, village houses, town houses and apartments. You can build a brand new home or you can choose to renovate a historical building and retain some of its charm and architectural features while including all sorts of modern amenities.

HOW TO EARN FROM YOUR HOME IN GREECE

Aside from the expected increase in property value, which will help you sell the house at a profit later on if ever you choose to do so, you can also earn a lot from renting out your home. This is particularly feasible if your home is located near the tourist districts and if you offer the services and amenities that many travelers have come to expect. The beauty of this arrangement is that you can use the rental income to maintain the home while you are away, while still retaining the right to use the house whenever you wish (just don’t accept renters during that time!)

1) Research Your Location

You may already have a favourite destination in mind and be visualising your life lazing by a swimming pool overlooking the Mediterranean Sea…on the other hand you may be interested in shopping around to find the best countries in which to buy a vacation home and make an investment into property.

It’s wise to do a fair amount of research into any new destination and cover everything from foreign ownership of real estate rules, property taxes, the political and economic stability of a destination and also the investment potential a given country offers. With this information in hand it will be easier to make the right decision about which location suits your lifestyle objectives, budget and long term investment plans.

2) Employ Assistance

Finding a realtor able to assist with your search for the perfect vacation home could save you time, effort and even money in the long run – although most realtors take commission from any sales they make of course! But a local agent will understand the dynamics of their property market and be able to quickly and efficiently track down real estate bargains that match your vision for your vacation home overseas.

Be aware that in some countries real estate agents neither have to be licensed nor qualified however and so take a recommendation if at all possible and tread carefully.

3) Manage your Money

If you need to raise a mortgage to pay for your vacation home you may need to re-mortgage your home or raise finance in your home country to fund the purchase because in many countries it is difficult for non-residents to get a mortgage and in some of the emerging property markets around the world there is no possibility to get a mortgage.

When transferring money overseas beware of fluctuating exchange rates that can devalue your lump sum significantly and make the difference between you affording your dream home and affording a poor second best. There are professional companies available who can help those buying property abroad to deal with fluctuating currencies…look into your options.

4) Title Deeds and Legalities

Legal systems vary from country to country as does the land registry system, and in some countries title deed transfers are not registered at all which can make it difficult to prove who owns property. Make yourself aware of the legal rights that you will have as a property owner in a given country and find out about any assurances you can get that you own the freehold title to the vacation home that you have bought.

Never buy real estate overseas without the aid of a good lawyer, check their credentials and ensure that any contracts or agreements you sign are translated into your mother tongue and that you check the wording carefully before you sign!

5) Protect Your Assets

Once you make the transition from house seeker to vacation home owner you will want to keep your real estate assets well looked after. If you are only going to be vacationing in your home overseas occasionally consider having a management company look after your home when you are away.

Ensure a property that is to be left for periods of time is well secured because even in countries where there is very low crime a beautiful home left standing empty can become a temptation.

Get insurance to cover the value of your home and contents and make sure someone regularly checks that your property is in good order, that the weeds are not growing over your veranda and that your swimming pool is clean and ready for when you next take a holiday in the sun.

It is quite a confusing experience for a foreigner to invest in another country especially if that investment will involve getting into real estate. The Greek real estate market is an especially confusing and complicated environment. But if you take the time to look at it objectively and take it step by step you will be able to wade through the whole process with less difficulty.

Based on the law of the country, a foreigner can own property in Greece. But there are certain restrictions that deal with property purchase in certain areas in Greece, namely, properties located in the eastern Aegean, Dodecanese Islands, some regions in northern Greece, Crete and Rhodes. These restrictions only involve buyers who are not citizens of the European Union. A non European Union citizen must apply to the council of the local prefecture before they can attempt to buy property in the areas mentioned. You do not need to do this on your own though, real estate agents will be more than happy to assist you in this process.

It may help to remember that you need to add a minimum of 15 per cent of the purchase price as a cost for certain fees and taxes. This will also include the property transfer tax of about 7 to 11 per cent. The fees for lawyers is usually about 1 to 2 per cent, while the other expenses are approximately about 1 per cent – this is going to notary fees and the land registry. At present the local municipal tax or community tax is being pegged at 3 per cent of the purchase tax. This tax is paid along with the purchase tax. The annual taxes on properties in Greece are paid if the value of the property is over 200,000 euros. The government is responsible for putting value on properties. The government also provides published values and these are announced for every type of property.

Remember that any person who buys property in Greece must possess a Greek tax roll number or AFM. The AFM is issued by the tax office. Do not worry about getting this as it is issued without charge and is given on the spot. Greeks and EU citizens are required to show their ID cards. On the other hand, foreigners who are living in Greece will be required to show their passports or any other valid document that would verify your identification. The resident permit must also be shown. Greeks and foreigners who are permanently living abroad can also get an AFM. They can do this by submitting an application to the special tax office that is located at 18 Lykourgou St, Omonia.