One of our IP’s in London is proving to be too expensive too run and so we are looking at moving our money elsewhere. A place I fancy is Greece. Has anyone got any exerience in buying an IP on a greek island? Which websites did you find helpful and did you raise a mortgage through a international lender?
Lainy,
Parents are building property and renovating old paternal home on one of the islands.
There is much interest from people in the UK & Germany in particular which are looking at buying and paying some large amounts of money for land/old buildings, especially on the islands.
Costs (above purchase price) for EU members are apprximately 10%
There are many websites that will give you information – this is one of them
http://www.real-estate-european-union.com/english/greece.htmlPrices for some new townhouse developments equivalents in Rhodes for example are similar to prices here in Melbourne.
Thanks for this information. I think your parents are very brave buying land and building from scratch. The disadvantage I have is that I do not speak the language.
To begin with I think I should keep this project simple and buy what I can actually see.
Are your parents taking out a Euro mortgage from a company based in Greece?To build there or for thnat matter in any country where language is a barrier will be problematic. I would recommend having someone who speaks the language and can liaise with the builders.
It is also not something that I think you can do from abroad. My father will be going back during the major part of the re-building to supervise and keep control over the activities.
The cost of the re-build/renovation is going to in the vicinity of $100k-$130k, and they are using existing equity/savings to build, so they do not need to get finance as such.
T
o begin with I think I should keep this project simple and buy what I can actually see.Agree wholeheartedly. Like any property purchase do your research and understand the Greeks have their own way of doing things (their own pace)!!
This is a link with regards to property taxation in Greece.
Thanks for the links, this taxation one will be very useful. If I have read it right there is no capital gains tax in Greece and transfer tax may be the equivalent of stamp duty?
I have found a website for a company that arranges mortgages and will as them.
Thanks again
Lainy
There is a program I think it may be on the Lifestyle channel. It’s called “No Going Back” and the format follows couples that leave England to buy property in Europe and set up something they can earn a living from. One even came to Aust. I thnk this has pushed prices up over there especially if you look as if you might be from England. It seems to be very popular. Take care with that, I feel that you would probably end up paying too much. Anyway, it’s an interesting program if you can catch it.
cheers
Toni [biggrin]
cheersI came across this topic and although old it is worth giving my 2 cents worth. There are 2 issues to consider. Do you just want a IP or something you can also use to holiday in yourself or retire to? The most touristy and popular Greek islands can be very expensive (Rhodes, Santorini, Corfu, parts of Crete, etc). Being touristy there is an element of seasonality and lack of demand in the off season. In the on season you can expect short/summer tennancy with good returns. Smaller places lack demand. However there is a glut on some islands and tourism has suffered with the Euro and high prices in the last 3-4 years. Buying a farmhouse with olive-groves etc may be more suited for a future sought after lifestyle but location location location is the key….once again you may rent it out to tourists but few locals would rent out a farm for long-term. If you want a more stable IP in the typical sense then buying a boring apartment in a larger mainland city (Athens, Thessaloniki) may be of more benefit, especially in areas close to universities, TAFE;s etc…We have had one in Thessaloniki for 15+ years and it has never been unrented.
Just some food for thought!Lainy
Be v careful when buying property in Greece/Greek islands.
12 months ago I was touring greece and visiting the various islands and property after property seen along the way was only half finished and people were living in it as such.
I asked why the people didn’t complete their houses and I was told it was because of the tax situation over there and if they don’t completely fin the building they don’t need to pay the taxes as they are high if the buildling is complete.
And remember things run in Greek time meaning that it is not done to schedule.
Good luck
Jenny1
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