Investing into properties on Crete island is one of the best ways to profit and retain safe capital at the same time. After careful analysis of market trends for tourist areas, one needs to pay attention to governing laws in order to make maximum profit. There are two ways to make more money – by selling on acquired properties and/or by renting newly acquired property. An additional way is through investment into commercially used properties, as in hotel business investments. For the last 20 years, the occurring crises have shown that investments were less susceptible to losses in value, and – by comparison to other kinds of investments – a carefully selected property for acquisition will always retain value that maximizes within 10 years. This means that following a proper method for acquisition, one is able to profit from selling a property at all times. Additionally, by purchasing 250 000 Euro-valued properties in Greece, foreigners become eligible for a 5-year residency permit for themselves and closest family members.
Investing into Cretan construction of homes in order to sell or let.
The mistake made most in construction is undervaluing the cost of a built home. One is wiser to request final project of home(s) with all due guarantees and billing, so as to avoid unnecessary payments at a later stage. Generally all bigger and more expensive properties are constructed in accordance with owner’s wishes. Whereas more compact homes are easier for selling later on, and are built faster and cheaper in costs. Modern technologies allow to construct a fully-equipped home the size of 90-110 sq.m. within 5 months. One is able to put up properties for sale as soon as the finalised project is approved and building has commenced. This means in the best case scenario that one is able to build a home, find a buyer and finalise all documents all at the same time. An alternative way is to refurbish a stone home preserving the traditional style yet installing modern design and appliances. This is usually the case with village homes of Crete island, among neighbourhoods of the natives.
Regarding all legal aspects for investing purposes one ought to consult experienced attorneys and notaries for finalising all necessary documentation in order to gain permission to build from local government divisions. When building commences, the investor undersigns an agreement with the real estate developer regarding general costs for the project, as well as its stages of construction and dates up until finalisation of a fully equipped home. Any services not mentioned in such an agreement are not mandatory to be paid by the investor. The costs mandatory to be paid by the investor must remain the same after undersigning. This agreement must also clearly state all obligations between the investor and the real estate developer, so that construction is accompanied by all necessary guarantees and deadlines. If such is not the case, the real estate developer is obliged to pay out to the investor compensation costs as penalty and as stated in this agreement. Crete island offers three main location criteria for choosing a land property for construction of a private or commercial building:
1. proximity to seashore and nature
2. proximity to road infrastructures and residential areas
3. proximity of accessible infrastructures nearby
Investments into construction of homes yield up to 80% from building costs and up to 40% from land property costs.
Construction of Cretan homes allows three options:
building wooden-framed homes
building metal-framed homes
building solid-cast homes
Investing into Cretan properties in order to let.
It is obvious that purchase of any villa, house or apartment for letting is an excellent way to invest and profit. There are two ways to do this: either passively by long-term letting, or actively by overnight-stay letting. The former way is beneficial as a passive income stream, whereas the later way is more business-like and therefore requiring more experience, efforts and time of the investor. Most clients have a preference to hire an agency to advertise, show and let their properties. When purchasing a property, it is of utmost importance to pay attention to details – such as:
1. General condition of property and land.
2. Proximity to roads and residential areas.
3. Available view to landscape or seashores.
4. All documentation details with dotted lines.
5. And not least regarding anything that may need mending.
Never consider any property in haste, and always ask for an opportunity to briefly walk through property arrangements by yourself.
You can have a look at villas that have been built or purchased for letting here.
Investing into Cretan hotel business.
Hotel business investments are a different story as these are long-term commitment, allowing selected hotels to walk through any political or economic crises. Whether constructing, purchasing or letting overseas hotel business – these options almost always repay investment in due time and many invest for long-term profits. Crete island has booming tourism infrastructure, with new tourist lodging ranging from mini-hotels to vacation apartments that remain in high demand with quality service. Most private investment goes into hotel business ownership for further development, allowing the investors to benefit from profits already in their first year of management. Hence purchase of hotel businesses and their expansion is of most benefit for investing, as is investing into new hotel complexes for long-term profit – once the selected hotel achieves a high visitors quota and is known in the area, the return profit is high. Many corporations invest specifically into construction of hotel complexes as these have a higher benefit by comparison. At present time Greek government supports hotel construction business with 40-60% of full project cost grants above one million Euro.
In order to select the optimal investment into Cretan hotel business, the following must be considered:
1. Closest possible proximity to beaches, likewise to major roads and residential areas
2. Cross-checking all financial history inclusive of budgeting and tax declarations for the last 2-3 years, as well as any debts payable or existing loans
3. Not least inspection of building design regarding possible renovation works and additional costs
To select the optimal investment into construction of new hotel complexes, the following must be considered:
1. Plausible selection of land for commercial building
2. Diligent business-planning inclusive of all cost breakdowns and deadlines
3. How to be requesting and receiving government grants for construction