Now that you've successfully navigated a North American real estate market and secured a Nashville home as your primary residence, you may be thinking about setting your sights on investing in a vacation property somewhere else in the world. Greece is a popular vacation destination for many people in Europe and North America. If you're thinking about buying a vacation property in Greece, this article will give you a little background on their real estate market.
As you may know if you've been keeping up with the news, the Greek economy is in shambles. Starting with the financial market disasters of 2008 and continuing through 2012 and 2013, the Greek housing market has taken a big hit along with the Greek economy. While many countries have since recovered from the recession and BC houses have become as expensive as they once were before the crash, Greece has not recovered and is now entering their sixth year of recession. Experts expect things will only get worse in the years to come, especially if the people continue to resist austerity measures which may save their economy at the expense of their comfort.
Inflation is also a big problem in Greece as the country struggles to manage its massive debt loads. Consequently while the money in Canadian dollars you made on a Manitoba home sale will remain relatively if you keep it in an envelope at home, a similar stash of money in Greece can be rapidly devalued as the amount of money it takes to do ordinary things like buy groceries increases. What this means for you is that the worse their economy gets, the further your money will go.
As a potential property investor, Greece's financial troubles make it much easier to get a choice piece of property for an excellent price. With unemployment and unpaid mortgages on the rise, a Greek real estate agent will be much more eager to sell property to you. Housing prices will be more expensive in touristy areas such as Crete where other foreigners are also attempting to cash in on the Greek economic crisis, but overall prices are dropping by about 10% per year.
If you experienced success buying property in order to rent condos in downtown Toronto to others and are looking to replicate your success in Greece, you will not have much luck, as Greece, even in its troubled times, has a high rate of home ownership - almost 75%. Rental yields for properties in Athens range from about 2.75% to 3% while in other areas you may only be able to earn about 2.5%. The highest yields come from vacation properties in the Greek islands, where you could earn almost 5%.
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