There are so many opportunities to buy property abroad that it can make even the seasoned investor’s head spin. It seems like there are so many options, so many promises of good profit (with the added benefit of having one’s own vacation in an island pradise).
And indeed, what is not to like about buying property abroad? Many times the properties are much cheaper than if you had bought one of the same size and similar location in your homeland. For example, a seaside home in Greece can be just as affordable as a condo in a city in the UK!
But you need to think things out. This is not an impulsive decision and many important decisions must be made.
One important thing to remember is that you can’t go there without a budget. Plan how much you will spend and make sure it is within your means and risk tolerance. What can you afford? And don’t just look at the purchase price. Factor in legal costs, maintenance charges, money transfers, mortgage repayments, flights , accommodation and insurance costs. There are some miscellaneous fees that you have to account for, not to mention the hotel stays as you go about on property tours and finalize the details of the property sale.
It’s true you can recover a significant amount of your investment by renting out your property but don’t count your chickens before they’re hatched. It’s best to err on the safe side in your computations. Factor in things like low occupancy rates and currency fluctuations as you figure out how long it will take to recoup your investment. Neither should you use rental income as the source of your monthly payments to your mortgage. What happens if you can’t find someone to rent for that month?
You should also consider taking out overseas mortgages, which is one option open to those who buy property abroad. These are just some of the ways by which you can raise funds. You can release the home equity in your existing home, or you can contact a local lender or an international lender.
Do remember to factor in money transfers. You should view the fees and packages offered by currency brokers, who can help protect you from currency fluctuations.
Greece is a beautiful country, a favorite tourist destination… and now considered one of Europe’s property hot spots. There is no better time to buy property in Greece than today.
Greece has many things to offer to both tourists and property owners. Just think of the beautiful scenery and breathtaking landscape! It seems taken out of a painting. You’ll find hillsides embroidered with pines, limestone gorges and formidable mountains, some of the cleanest beaches in Europe, and sun drenched beaches that invite you to lie down and bask in the sun. Greece also has many picturesque islands that are ideal for day trips. These include Crete, Rhodes, Kos, Euboea, the Dodecanese and the Cycladic groups of the Aegean Sea as well as the Ionian Sea islands.
One of the first things you need to do before buying a home in Greek is to ask permission from the local government. Some places require foreigners to provide proof of consent from the local government before you are given a permit to buy and build. Don’t worry it’s not as complicated as it sounds. You can get that at the office and the whole procedure takes mere minutes.
You should also hire a lawyer who specializes in real estate and knows the Greek real estate law by heart. This lawyer knows the pitfalls that normally surround buying property and can help you navigate the steps so you have a minimum number of delays. Imagine how long you’ll be stuck in the courts if someone contests the right of the seller to the property! Save time and energy and get a lawyer who’ll carefully review all contracts and gather the data needed to prove that the land is indeed legal.
For example, hiring a lawyer can protect you from being the victim of ‘usucaption’—one of the most common causes of delay, This means that a house and lot have not been registered when it changed hands from one owner to another (such as when it is inherited).
Aside from a lawyer consider getting a professional to conduct a land survey to make sure that the scope of the land matches the measurements in the contract.
There are thousands of people buying a home in Greece every year. Many of them do not have any problem at all, especially if they are aided by a good real estate agent and lawyer. But of course there are obstacles and delays that occur, many of which could’ve been avoided. Here are some tips that may help you so you too can enjoy a hassle-free foreign property investment,
The first tip is that you should always define your objective. Is it to buy a house for personal use or is it for investment purposes? If it is for investment are you in for short-term capital gain or long-term investment? Or are you more after regular income, earned from renting out the property?
Another important tip is that you shouldn’t be impulsive. Don’t just buy on a whim while vacationing in Greece. Even if you fall in love with the country it’s best to go home first, research on the different regions, look at the different options in other parts of the country, and generally make an informed choice. While you may end up buying that house you first fell in love with, at least you know that you have looked at other properties. There are no regrets.
If you are buying off plan then you also have to examine your decision very carefully. In off plan purchases you invest before the property is finished, often being given a preferred rate. However don’t be tantalized by the great bargain. Ask a lot of questions. For example, is the developer credible and reliable? What other projects has he finished? Is it a big firm? How can you be sure the project doesn’t stop in the middle of construction? Make sure the builder has permission to build the project.
Next ask about how the money will be managed, and if it is put safely in escrow. Needless to say you should make sure that the payments are recorded properly and the schedule of payments is also put into paper. Have a lawyer look at the agreement. Ideally there should be legal provisions to protect investors in case the project isn’t finished.
The Greek area of Peloponnese is quickly becoming one of the most popular places for holiday homes. It is located on the southern portion of mainland Greece, which is marked by the border of the Corinth Canal.
Peloponnese is famous for its famous historical and architectural sites. The climate is very appealing to those who want to escape harsh winters. It is not that cold during the winter months, and the summers are not that hot either. Many people also praise its beaches, which are clean and offer a great number of opportunities for water sports.
The Peloponnese region also boasts of a beautiful mountain backdrop. In the distance you can see the Messinian Mani mountain range. The highest peaks belong to the Taygetos. Between the mountains are the picturesque and fertile valleys where Greece’s vineyards and farmlands lie. For centuries Greece had an agricultural economy.
Aside from the Peloponnese Messinian peninsula investors are also flocking to the Kalamata district.
This is one of Greece’s biggest property hotspots. Records show that there are already 2,500 foreigners who have boguht holiday homes or property in Peloponnese. Most of them are British nationals but one can also see a large number of Germans and Americans, not to mention Austrians, Canadians, Dutch and Czech.
They are drawn not only by the region’s natural beauty but the affordable prices of properties. It is true that the values have already increased in the last year (a sign of the region’s popularity and potential for profit) but you can still find many places that are going for bargain prices. For example you will see historical homes that need just a little renovation but are being sold for an amazingly low 30,000 pounds. They are quite charming and have a lot of character and history. Those who want a brand new home can find one for as low as seventy five thousand pounds. No wonder so man retirees have come here, knowing that they will enjoy a quality of life they can’t find in more expensive European regions.
Why are so many people buying property in Greece? It all started in 2004, right after the Athens Olympics. One of the most important sports in the world, the marketing and publicity for the Olympics pushed the country into the limelight.
Everyone was suddenly talking about the country and how beautiful it was, and this piqued the interest of many people looking for a holiday home.
But of course this was not the only time that Greece was celebrated as a popular destination. It has always enjoyed a thriving tourist industry, all the Olympics did was to give it a little extra promotion. The numbers of tourists increased significantly and investors took notice. Several years later there are no signs that this interest has died down.
This has led to a real boom in the real estate industry of Greece. There are such high demands for rental properties and even homes that are being resold. The undeveloped areas of Greece, on the other hand, are also being fixed and it is here that investors can really see a huge capital gain. With property values increasing every year one can make a lot of money just by buying the right place at the right time.
Another factor in the success of Greek real estate is that the prices of property are simply very affordable compared to other countries in the European Union. Compared to property in Spain, Greek property can give greater vale for money. Both countries share the same climate and yet for those with smaller budgets Greece is the best option indeed. To find out more about buying property in Greece, contact a real estate agent and inquire about property tours. See it for yourself!