Check carefully before you buy that Greek Island
While, in the words of the Wall Street Journal, buying a Greek Island “drenched in sunshine and surrounded by turquoise water”may be the ultimate property dream, there are a few pitfalls of which buyers need to be aware.
For the brave – not to mention very rich – there are about 20 islands currently for sale, ranging from $100 million plus to just a few millions.
But caveat emptor.
Some of the pitfalls include:
– access to many of the islands is difficult — especially since Greece has restrictions on private seaplanes. Personally I would not even consider an island to which I could not fly in my own seaplane.
– up to 32 bureaucratic steps are required, including background checks to determine whether a prospective buyer would pose a threat to the country’s national security. Obviously, this is why recent buyers come from stable countries such as Russia.
– if you think it’s difficult to get a plumber here, consider how you’d get one out to your island. You can’t even send your seaplane.
– all beaches are public. That means no matter how remote the island or how high the price tag, anyone with a yacht can show up, uninvited. Bummer. Compare that with Massachusetts where owners of waterfront property own to the low water mark.Now if we could just turn the ocean blue and get the temperature up about 30 degrees…..
– Greece has also introduced an annual property tax, something which is believed to be causing the flood of islands for sale.
Many homeowners in the US were – and some still are – trapped in houses with no ability to sell. But I suspect few in any US cities could compare with Athens, where the number of sales dropped from 250,000 in 2005 to just 3,600 in 2013.
When I started reading how to buy a Greek Island, I must admit I was tempted, but on reflection maybe a wiser investment would be a vacation.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
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Good one, Oliver.
I enjoyed that current advice, which allowed me to position my immediate strategies / plans for right now. With that information, I won’t be looking into buying any Greek Island(s) right now.
I liked the blog, because I’m not a numbers guy. In the past, we have disagreed on the value of those predicting, pontificating, or making a buck on real estate; on giving advice based on past real estate statistics, trends, predictions, and other offerings. I do feel, that all of that is interesting like history can be, but nothing I would wager any future bankrolling. Real estate is an overly emotional enterprise, that defies meaningful predictions.
The only statistic that does have some real estate meaning is consumer confidence, which is based on the nation’s current employment & unemployment (the real unemployment numbers), and their prospects.
All economic activity, positive or negative, is birthed by consumer confidence. Whether to buy an expensive steak, a new dress, a car, go to a Red Sox game, send a kid to camp, go on a vacation, buy a home, or do none of the above, is based in consumer confidence. Peoples’ unemployment, underemployment, or outlooks for the viability of their jobs is the real do-nut to keep one’s eyes on.
Businesses base their production estimates, purchasing of capital goods, and materials of production based on their takes on consumer confidence. And, even with that, sometimes they win, and sometimes they lose.
Anyways, I don’t mean to beat a dead horse, but every once in a while it gets back up on its feet, shakes off the dust, and starts to trot. Lest we forget.
Have a happy holiday season with your family, a Merry Christmas, and a healthy, fun 2015.
Jody