We received an interesting question about whether it’s possible to live in a property that is meant for investment.
If you buy a van for transporting goods and ask if you can use it for leisure trips, of course, you can, but its purpose is entirely different.
It’s somewhat similar to residential real estate. Any compromise in investment property reduces profitability.
The factors that we consider significant when choosing investment properties are:
- Location
- Profitability
Profitability is the foundation of any investment, and if it doesn’t meet your expectations, don’t hold onto false hopes, don’t rely on luck, and don’t assume that your property is somehow better. The rental business is a highly competitive market in any metropolis, and clients always choose between price and the quality available on the market.
The location of your property ensures your safety. If you need to sell quickly or if the market starts to decline, you will have time to exit the asset and reinvest promptly.
Today are turbulent times worldwide, and the middle class is facing economic challenges. When people lose their jobs and struggle to pay for housing, they compromise and move to cheaper areas or smaller accommodations in an attempt to save money.
We see many investors coming to Greece to choose investment properties, and most of them end up purchasing an apartment or house where they themselves would like to live (“for personal use”).
The reason is quite simple: agent will show you what you are accustomed to seeing at home and explain that venturing into other areas is not advisable (it’s dangerous, populated by immigrants, and they come up with a multitude of reasons). Greek developers and other investors, on the other hand, buy in areas that have “potential.” Why do they do this? Because they can already achieve higher profitability today, and in 2-3 years, they will sell it to you as “premium.” That’s how the market works.
Here’s our assessment of different neighbourhoods in central Athens:
For personal use: Monastiraki, Kolonaki, Pagrati, Koukaki, Gazi, Neo Kosmos, Glyfada.
For investment (as of 2022-23): Kypseli, Patision, Acharnon, Metaxourgeio, Victoria, Exarcheia, Gizi, Omonia, Agios Nicolas.
