Stelios from Greece and the first attempt to real estate

2 Replies

Hello to this great community, I'm glad I finally found a community around real estate.

Well to introduce you, my name is Stelios 32 yo from Heraklion, Greece(Crete Island), married with 1 kid.

As for Real Estate, right now I'm working on buying 2 studio apartments in my area(Heraklion).
According to my newbie research in the area, the market in my town must be right now in phase 1 but I'm not 100% sure, to be honest.

Bureaucracy alone is one hell of work in my country and I already work 3 months on fixing papers, waiting for tax systems to unlock so we can get some tax papers needed and much more things...

Well to consider numbers, the 2 apartments are in the center of my town and they are both sold at the deep discount of 23600€ right now if you ask me this is a very rare price. They will need some fixing like 10000€ cause the building is old (68') and they didn't fix anything since like 10 years so it will take a lot of work.

These apartments (the 1st apt bedroom and balcony and the 2nd apt balcony have a full sea view and Heraklion is a tourist attraction so I'm thinking about going 100% on short-term tourists renting. 

I'm too skeptical for some things thought.... 1st I have no numbers in my hands since the seller never involved in renting the apts , 2nd Do you think I'm exposed to a bigger risk since it is the beginning and I will not have a steady cash flow out of short-term renting? 
3. At the beginning I got an acceptance from the bank to take a loan as an individual for a mortgage loan with a 4% interest this is like starting with no company which will get me with fewer expenses for the beginning (lower mortgage payments, no need to start a company and pay monthly an accountant for this but I cannot count any expenses that will be made in my investment, my country gives a standard 5% deduct on individuals so let's say my annual income is 10000€ , I got to pay 10000-5% = taxes for 9500.) 

4. Since it takes so much to take the papers and start running my apartments I consider now starting a business where I can deduct all my expenses like the homes fixing at the beginning and the future properties that I consider buying but by doing this plus the short-term renting that I consider with tourists/visitors I feel more risk exposed since I will have to pay for a business loan with 6% interest, and an accountant to keep my business papers which will need another 120€ Monthly(that's for a Private Company which is considered to give a legal protections since me as an Individual is not exposed similar to protection that an LLC provides at the USA.)

What is the community's opinion about what will be better for me? 

The Greek housing market may be in the gutter, according to recent reports, but you wouldn't know it from the booming business that realtor Stelios Miliarakis has been seeing. That's because Miliarakis caters to a very specific segment of buyers: prosperous Chinese with an eye toward acquiring foreign properties.

The Market at my Area will go in bubble highs in around 3-5 years , already Chania and Rethymno are close to bubble Highs. Heraklion Has a little more warehouse available as it's the 4th bigger city in my country.
We have some phase 1 areas in my country but I cannot step in as I am a novice investor and didn't even bought my first property/apartment. Ticket costs will cut off all my earnings if I step in to towns Like Thessaloniki or Patra. Right now my options are to buy 1-2 apartments at my town and this is the best thing to do for now and to add up to 3-4 Apartments/per year for the next years to come (3-5 years).

If I was at Patra right now I could acquire 5-6 apartments with the same capitals that I will spend for 1-2 apartments in my town straight away with not so much effort. The market is really cheap right now there.

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