Invest in Greece: Buy-to-Let Risks and Yields

Are you considering investing in Greece? Buy-to-let properties are always a good option. Keep on reading to understand the risk, the cost but also the possible returns.

What is Buy-to-Let?

Buy-to-Let is when you buy a property in order to rent it out to somebody else. 

Investors can make money this way by generating a monthly income via the rent, or making a capital gain when they decide to sell it. But of course, every investment comes with a risk and several costs.

What are the risks and costs of a Buy-to-Let?

Property Location

Finding the right property at the right location can sometimes be a challenge. If you get the location wrong, rent might be lower and tenants hard to find. Before making the investment and probably a house renovation, think about the tenant you are targeting. 

A business professional, for example, is more likely to look for properties nearby business districts whereas a student will prefer an affordable rent, close to the university and the nightlife.

Property's Condition

If you go for an old apartment, most probably you will have to consider doing renovation in order to make it safe to live and attractive to rent. Maintaining the property is also another cost that you will have to take into consideration.

Trustworthy Tenants

Now that you have found the tenants ideal profile and the property's location, the only thing left is finding the right tenants. Not as easy as it sounds. Make sure that the tenants respect your house rules, are not creating issues for the neighbors and most importantly paying the rent

We imagine that this can prove to be challenging in a country where you do not speak the language or you do not know the culture.

Real Estate Taxation

Taxation systems vary from country to country and can also change. One of the Covid-19 initiatives of the country, is offering Tax Relief to attract work-from-anywhere crowd!

Here is a 2019 guide of Greece's real estate taxation system.

What returns should I expect?

Rental yields are concerned to be moderate in Greece.
In the center of Athens gross rental yields on apartments are moderate, at around 4.2% for apartments of 120 square meters (sq. m), but proportionately more for smaller apartments, according to Global Property Guide research.

The gross rental yield for apartments located in suburbs of Athens is slightly higher, at about 4.5%.

In Thessaloniki, Gross Rental Yields are at 4.6% both for the center and for the suburbs.

Here you can find the average asking prices in houses in Greece.

Buy2Let with Estate Brains: Over 10% Yield 

It is not us who claim that. It is the numbers! Take advantage of our Buy2Let Services, Property management and much more.

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