In recent years, Greek property has been an excellent investment – particularly on popular islands such as Corfu.
Nevertheless, you should consider your property investment over the medium to long term – like a minimum of 5, preferably 10 to 15 years.
Also take into account the income tax if you let your property. And recoup the high purchase costs of up to 15 per cent when you sell.
Generally speaking, the four main categories of investment property:
A holiday home, which can provide a return in many ways. It can provide your family and friends with rent-free accommodation while (hopefully) maintaining its value, and you may be able to let it to generate supplementary income. It may also produce a capital gain if property values rise faster than inflation (as in recent years).
A home for your children or relatives, which may realise a capital gain. This could also be let when not in use to provide an income.
A business property, which could be anything from a private home with bed and breakfast or guest accommodation, to a shop or office.
A property purchased purely for investment, which could be a capital investment or provide a regular income, or both. Many people have invested in property to provide an income on their retirement.