Buying holiday apartments/villas on Greek Ionian islands?

[becker-on-ph]

Considering buying a holiday apartment or villa on the Greek Ionian Islands - Corfu or Kefalonia.

Intention is to let it, build up further funds from the income and investments maturing over the next few years and build up a portfolio of Med based holiday lets.

Investments in equities have not performed very well over recent years, so looking for something with a better return.

Property investment costs in the Uk are now too high to get started and financing options to restrictive - so looking overseas where with a modest amount of capital you can buy an apartment or villa.

Just curious what the opinion of the panel is?

Property prices are very low at the moment - so feel the time is right to jump in.

These are popular holiday destinations and holiday rental demand is still ok.

Looking at the Ionian islands because unlike Kos etc are just far enough away from Turkey/Syria.

Have already investigated the costs of buying - fees, taxes, licences, etc
Understand we will need a regular housekeeper, maintenance person, etc

Thoughts?

[Bill]

Ask yourself why they're cheap, and what is going to change to make them less cheap?

The Greek economy is a basket case. It was a basket case before they joined the Euro, and will remain one when they leave. There might be a Greek property bubble based on foreign btletters, but it'll likely be the last to inflate and first to go pop.

[daemon]

Bill said:

Ask yourself why they're cheap, and what is going to change to make them less cheap?

The Greek economy is a basket case. It was a basket case before they joined the Euro, and will remain one when they leave. There might be a Greek property bubble based on foreign btletters, but it'll likely be the last to inflate and first to go pop.

Would totally agree with you.

[jamescodriver]

chap I used to work with signed up for a villa on the island of Samos, guaranteed increase in value according to their sales leaflet (they put the asking price up every year), quickest flight / transfer in winter time was 13 hours, only 8 in the summer, due to be finished in 20011.

Currently they haven't put so much as a spade in the ground...

[Bill]

jamescodriver said:

chap I used to work with signed up for a villa on the island of Samos, guaranteed increase in value according to their sales leaflet (they put the asking price up every year), quickest flight / transfer in winter time was 13 hours, only 8 in the summer, due to be finished in 20011.

Currently they haven't put so much as a spade in the ground...

What's the hurry

[Muzzer79]

I would not buy a 'holiday' property as an investment.

IMO, a holiday property is a luxury for yourself, that you contribute towards the upkeep of by letting it out.

Expecting to make money on it is a brave move, especially in an economy like the Greek one....

See all those folk who bought property in Spain as investments......?

[becker-on-ph]

Muzzer79 said:

I would not buy a 'holiday' property as an investment.

IMO, a holiday property is a luxury for yourself, that you contribute towards the upkeep of by letting it out.

Expecting to make money on it is a brave move, especially in an economy like the Greek one....

See all those folk who bought property in Spain as investments......?

But wasn't the problem in Spain that they all bought at the peak? - prices are now near the bottom?

Its not really the capital growth of the property, but the rental income that looks attractive.

[KFC]

becker-on-ph said:

Considering buying a holiday apartment or villa on the Greek Ionian Islands - Corfu or Kefalonia.

Intention is to let it, build up further funds from the income and investments maturing over the next few years and build up a portfolio of Med based holiday lets.

Investments in equities have not performed very well over recent years, so looking for something with a better return.

Property investment costs in the Uk are now too high to get started and financing options to restrictive - so looking overseas where with a modest amount of capital you can buy an apartment or villa.

Just curious what the opinion of the panel is?

Property prices are very low at the moment - so feel the time is right to jump in.

These are popular holiday destinations and holiday rental demand is still ok.

Looking at the Ionian islands because unlike Kos etc are just far enough away from Turkey/Syria.

Have already investigated the costs of buying - fees, taxes, licences, etc
Understand we will need a regular housekeeper, maintenance person, etc

Thoughts?

You obviously know nothing about what you're doing here, yet you intend to leverage debt to buy in Greece?

This has disaster written all over it.

[daemon]

becker-on-ph said:

But wasn't the problem in Spain that they all bought at the peak? - prices are now near the bottom?

Its not really the capital growth of the property, but the rental income that looks attractive.

Out of curiosity, what does a realistic occupancy rate look like?

Surely it must be decent in the summer months, say May -> end of September, but then weak / non existent otherwise?

Can those few summer months support your costs, and profit expectation across the year?

Edited by daemon on Tuesday 8th September 07:38

[Bill]

And that's assuming your entire investment isn't turned into drachmas, or rendered worthless by civil unrest and the collapse of public services...

[becker-on-ph]

Bill said:

And that's assuming your entire investment isn't turned into drachmas, or rendered worthless by civil unrest and the collapse of public services...

Agree, I think these sorts of things are the biggest risk - with no way of mitigating against them

Edited by becker-on-ph on Tuesday 8th September 08:44

[becker-on-ph]

KFC said:

becker-on-ph said:

Considering buying a holiday apartment or villa on the Greek Ionian Islands - Corfu or Kefalonia.

Intention is to let it, build up further funds from the income and investments maturing over the next few years and build up a portfolio of Med based holiday lets.

Investments in equities have not performed very well over recent years, so looking for something with a better return.

Property investment costs in the Uk are now too high to get started and financing options to restrictive - so looking overseas where with a modest amount of capital you can buy an apartment or villa.

Just curious what the opinion of the panel is?

Property prices are very low at the moment - so feel the time is right to jump in.

These are popular holiday destinations and holiday rental demand is still ok.

Looking at the Ionian islands because unlike Kos etc are just far enough away from Turkey/Syria.

Have already investigated the costs of buying - fees, taxes, licences, etc
Understand we will need a regular housekeeper, maintenance person, etc

Thoughts?

You obviously know nothing about what you're doing here, yet you intend to leverage debt to buy in Greece?

This has disaster written all over it.

Thanks - quality input to the topic.

And nowhere in my posts do I say I'm going to leverage debt to buy in Greece - I state it will be funded by income and maturing investments.

Unless you add anything of value then it would be better to not bother.

[KFC]

So why mention finance options being too restrictive?

If you're not going to use debt to buy it then that point was completely irrelevant.

[Steviesam]

So how much are these apartments nowadays in Greece?

Stupid cheap or just less than a few years ago?

[becker-on-ph]

KFC said:

So why mention finance options being too restrictive?

If you're not going to use debt to buy it then that point was completely irrelevant.

Not irrelevant - was to do with getting a mortgage on property in the UK to get in to B2L

For a modest capital amount - which would only really be a large deposit in UK - its possible to buy out right around the Med.

[becker-on-ph]

Steviesam said:

So how much are these apartments nowadays in Greece?

Stupid cheap or just less than a few years ago?

Depends where / how many rooms etc - but its possible to pick a 2 bed apartment near popular destinations for £30k - £50k on Corfu or Kefalonia - Corfu is the cheaper of the 2

[daemon]

becker-on-ph said:

Steviesam said:

So how much are these apartments nowadays in Greece?

Stupid cheap or just less than a few years ago?

Depends where / how many rooms etc - but its possible to pick a 2 bed apartment near popular destinations for £30k - £50k on Corfu or Kefalonia - Corfu is the cheaper of the 2

Have you considered a bit closer to home?

http://www.propertynews.com/Property/Belfast/ShowH...

[Fatrat]

We toyed with the idea of buying a second home abroad but eventually purchased a property in Devon.

We came to the conclusion that whilst cheap a lot of foreign property investments/purchases no matter how cheap carry a high degree of risk. Our friends have a lovely house in a popular area in France which they would ilk to sell but the bottom has fallen out of that market (no viewings in 12 months).

I think if you invest abroad you have to regard it as money you are prepared to lose or at least not necessarily be able to realise when you want it.

Devon may not be as hot but its a lovely place to be and I know I can sell without a problem if/when I want to

Good luck with whatever you decide

[AyBee]

Just buy Greek bonds instead

[BoRED S2upid]

Quite a risky investment IMO but I guess at £30-£50k it could wipe it's face letting it to friends and family and you using it a couple of times a year.

I presume it's a cash buy? If not who lends on £30k property in Greece?