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.
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Lot size: 1558 sq.mVilla: 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. |