Many people planning to buy a holiday home in Greece are interested in owning a property that will provide them with an income, e.g. from letting, to cover the running costs and help with mortgage payments.
Letting a home for a few weeks or months in the summer can more than recoup your running costs and pay for holidays. Note that it’s difficult to make a living providing holiday accommodation in most areas, as the season is too short and there’s often too much competition.
WARNING
If you’re planning to let a property, it’s important not to overestimate the income, particularly if you’re relying on letting income to help pay the mortgage and running costs.
The letting season varies with the region, although on most islands it runs from May to October (around 24 weeks) when charter flights are available. The season is longer in Athens and nearby resort areas, e.g. around 30 weeks. However, you’re unlikely to achieve this many weeks’ occupancy and you should budget for around half of these figures, even when letting full time.
Note that the rental market in Greece isn’t as well as developed as in many other popular holiday destinations. In addition, there has been a slump in the tourist market in both 2003 and 2004, and tour operators aren’t optimistic about figures for the immediate future. Apartments in Athens have year-round letting potential, whereas apartments in resort areas and villas tend to be in demand during the summer months only.
WARNING
You may be unable to meet all your mortgage payments and running costs from rental income, even if a property is available to let year-round. Most experts recommend that you don’t buy a home in Greece if you need to rely on rental income to pay for it.
Buyers who over-stretch their financial resources often find themselves on the rental treadmill, constantly struggling to raise sufficient income to cover their running costs and mortgage payments.