Villa, 140 sq.m | Crete Island, Greece | ˆ475,000 euro
This is a 3-storey villa on Crete Island. It is situated just 50 m from the sea. The villa includes 3 bedrooms that can accommodate 5 to 7 guests. First and third floors have bathrooms; second floor contains kitchen and living room. Villa has a fantastic view to the sea and mountains.
Lot size: 1558 sq.m
Villa: 3-storey
Area: 140 sq.m
Bedrooms: 3
Distance from sea: 50 m
Distance from airport: 8 km
Facilities: furnished rooms, solar panels for water heating, air conditioner, swimming pool, parking, garden, barbeque, garage, utility room.
Calculation of profitability (ROI) when the Villa is used as B&B

Crete Island is located at the very South part of Greece, therefore, the warm weather lasts there longer, and the high season is extended to 7 months: from early April to late October.

Income calculation

Income from using this property as B&B is as follows:
ˆ500 / per day in July, August
ˆ400 / per day in June, September
ˆ300 / per day in April, May, and October

Occupancy by month:
90% in August
87% in July
70% in June
67% in September
35% in May
30% in April and October

The average income is ˆ386 / per day
The average occupancy is 57%

Total income for the season: ˆ63,000 / year
Expenses calculation

Property tax: ˆ300
Salary: ˆ3,600 (1 maid, gardener)
Electricity and water: ˆ5,100
Other: ˆ1,000 (telephone, Internet, satellite TV, etc.)

Combined expenses for the season: ˆ10,000 / year
Current finances and outlook

Yearly profit from B&B business is: ˆ53,000

The asking price is ˆ475,000.
ROI (Return on investment): 11% / year

Income tax in 2016 was: 29%

The Villa has good potentials for increasing income.
One of options is extending the seasonal use of Villa up to the year round. This will require conversing the Villa, during the low season, providing the theme-vacation services aimed at specific groups of tourists. That would help increase profitability in 30-50%.

Purchase of this Villa as an investment is very attractive due to current conditions of real estate market in Greece. The prices have been fallen for several years and they have reached the bottom. Most likely, the prices will go up starting from 2018.

Note: This sample is based on a Villa listed for sale in July 2016. The financial data used for calculations were taken from the year 2015.