subject: Opportunities With Greek Property [print this page] The lower the price you pay for your investment, the better opportunity for profit exists. If you can find a bargain at the purchase, you have a longer upside period. You will make it into positive territory quicker, and the profit opportunities are more than with an investment that costs more to buy.
With the recent agreement to both austerity measures in Greece and a multi-layered bailout package by the rest of the European Union, property prices in Greece should begin to stabilise. That means it is very likely that the bottom of the market has been reached for real estate in Greece.
Although no one can predict the future as whether prices have truly reached the bottom limit, it is likely close, if not already there. That means for people looking to invest in Greece property, now is likely the perfect time to lock in profits.
An additional consideration is potential tax implications. Long-term gains are taxed by most countries at a lower rate than are short-term gains. Often, holding a property for five years or longer is a typical length of time to have any profits considered long-term gains and thus incur tax at the lower rate. Buying now means you would not only lock in your profit but also gain the advantage of a lower tax rate when you eventually do take your profits, so long as you wait the requisite period for your country, of course.
While the newspapers have been full of stories about the softening of the overall market, they have often failed to mention that higher-end properties have not seen the loss in value that lower-priced properties have.
Real estate in or near tourist areas like Athens or the Greek Isles have maintained its value very well, and while they may not offer the upside possibilities of many of the other Greece properties, they provide a bit more assurance for investors. Especially for investors who plan to buy real estate in Greece for mixed use (both personal use and letting out), a purchase in one of these areas makes excellent financial sense.
Another item to consider that can affect profit potential is whether the property is turn-key or not, meaning whether or not it is ready to use or let. Purchasing a property at an excellent price that you must make subsequent repairs or additions to will eat into your profit potential.
It is often a good idea to inspect properties in person prior to purchase. While pictures can tell you a lot about a property, a seller may simply not take pictures of any area that requires work. For example, a 3-bedroom condominium may only include pictures of the two largest bedrooms.
Greece offers unique opportunities right now for real estate investment. That does not mean, however, that a buyer should not take all the usual precautions to ensure that this investment eventually pays off.
