Buying In Order To Lease Out

So, what you have to pay attention to when choosing accommodation to lease it out?

We will help you to evaluate how well this or that accommodation will work in the future:

1. Evaluating liquidity.

In case if it is impossible to sell the property, then the investment is meaningless. The most effective way is to address to the bank to see how much borrowed money the bank is ready to provide you with against the security of this property.

2. Draw a profile of the tenant. Statistics for the last 5-10 years will show the nationality of the tourists coming to this region. In Greeceresort housing is rented mostly by Europeans and Russians.

3. “Explore the region” and what share of tourism is occupied by the area.

People have rest everywhere, but the rental market is distributed very selectively.

Europeans prefer individual tourism. They do not come to rest on a package tour, as renting housingindependently is considerably cheaper.

For example, undoubted advantage is possessed by the regions having an airport, serving international flights and charters. For many people today, the possibility of air travel is significant savings of their time and (under charter) of their budget, i.e. if the ticket is cheap you can fly to the sea-side even at the weekend.

4. Select what is demanded.

There is a simple rule: the smaller is the object, the higher is its liquidity and, therefore, the easier is it to lease it out (to rent it). At ski resorts chalet of 40-50 square meters with one bedroomare mostly highly liquid and very well rented. At the sea-side apartments within 80 square meters with two bedrooms are ideal.

The objects that are already equipped with everything you need, and which do not require the buyer to hassle, for example, with a kitchen, equipped by utensils, appliances, furniture, etc. are always more interesting for investments.

According to statistics, 63% of Russians are buying residential real estate abroad for their residence or rental, 22% - to get a residence permit in Europe they have been dreaming about, 15% - for their children to live while studying abroad in private schools and universities, and only 1% to resell later and earn.

During the last years Russians are among the three major buyers of real estate in Greece, and they are also in the top ten countries-buyers of real estate in Europe, having spent more than 8,000,000,000 € in 2012.

Experts predict that in 2013 the real estate abroad will be spent over ten billion euros on. Luxury housing will take up 30% of this sum, comfort class - 42%, and economy class - about 28%. Russians spent more than 4,000,000,000 €for arranged business abroad in 2012. Investment in the tourism business took up 30% of this amount.

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