Many owners investing in buy-to-lets

More and more people are interested in acquiring a property, not to meet their needs, but as an investment. Although the average rent is approaching the monthly installment of a mortgage, the difficulty of accessing the housing market due to high sales prices remains.

These are some of the conclusions emerging from the nationwide survey conducted by Focus Bari on behalf of the Athens-Attica Association of Estate Agents and presented on Thursday in the context of a conference on developments in the real estate market.

According to the survey, 18% of those surveyed expressed interest in acquiring a home in the next two years. However, 50% of them have a purely investment orientation, while the rest want to buy for their own use.

The survey also shows that the average mortgage payment is currently 488 euros, while the average monthly rent is €440 euros. In fact, 70% pay rent up to €600, with 39% paying amounts from €400 to €600 and the remaining 36% from €200 to €400.

The factors that increase rents, in order of priority, are considered to be inflation and the high cost of living, short-term rentals, the availability of real estate, inadequate state regulations, tax obligations, the level of average income and demand from foreign investors.

At the same time, 84% of the public agrees with the view that rents are too high in relation to incomes. However, only 22% agree with a universal ban on short-term rentals. In contrast, 35% disagree and 36% express a neutral opinion (neither agree nor disagree).

Based on the analysis included in the survey, “a distinct shift in the perception of real estate as an investment tool is observed, mainly through its exploitation for leases – whether long-term or short-term.”

However, this shift toward the investment nature of real estate has brought serious social consequences, the most important of which is the surge in housing costs, the analysis said.

According to the survey, 52% believe that real estate is one of the best investments a person can make, while almost six in 10 (58%) believe that investing in real estate that is used for short-term rental is a good investment.

Source: https://www.ekathimerini.com/economy/real-estate/1266712/many-owners-investing-in-buy-to-lets/