With Greece currently on a steady track to economic recovery, now is a good time to aim your next investment plans at the Mediterranean country. To help you decide which investment best suits you, we’ve listed the pros and cons of investing in real estate and foreign exchange (forex) in Greece below.
Real Estate in Greece
Ekathimerini reports that foreign investment in Greek real estate is on the rise, showing how real estate is a popular and worthy investment. It involves purchasing property with the intention of generating income through renting out or reselling.
•Access to the golden visa. Any non-EU national investing in real estate in the country can apply for the Greece Golden Visa, which allows investors to acquire a five year residency in Greece, as well as to travel within the Schengen Area without a visa.
•Low prices. Greece's ten year economic crisis sent real estate prices crashing down, which means that bargains are available.
•Not a liquid asset. Real estate properties are not liquid assets like forex, and as such, can’t be converted into cash immediately when the need arises.
•Added expenses. Aside from the capital required to purchase real estate in Greece, the need for continuous management and maintenance of the property are added expenses you have to account for.
Forex in Greece
Forex is a popular form of investment, and the numbers don't lie — FXCM notes that trading volumes exceed $5 trillion each day around the world. This type of trading involves the buying or selling of one currency in exchange for another in the hopes of making a profit through the fluctuating exchange rates.
• Lower costs. The capital needed to start investing in forex is a lot lower compared to the capital needed to acquire real estate.
• Reliable brokers. Legitimate brokers are easy to find, as the market and its brokers are closely monitored and regulated by the Hellenic Capital Market Commission (HCMC).
•Complex. Thorough research is needed to understand the basics of forex, as it is a lot more complicated compared to real estate.
•Volatile market. Changes in global politics and the economy greatly affect the forex market, which gives forex investments a higher risk compared to real estate investments.