Is it just me or does the countdown to Christmas seem to start earlier every year? I was appalled to read that Santa Claus made a guest appearance on the 8th of August at Harrods - on a zebra no less. Has Rudolph retired I ask myself? Seriously, I think it’s kind of sad that the whole Christmas celebration is being turned into a commercial opportunity – what do you think?
Anyway, that apart, I am really excited! My closest friend from South Africa is coming to stay a couple of weeks with me. And the beauty of London is that there is just so much to do! On the ‘events list’ is a play with actor Martin Shaw (we love him!) plus a trip on my friend Jane’s narrow boat from Windsor to Hampton Court…what could be more fun?
Talking of fun, what’s up in Greece in September? Well, the thing that catches my fancy is the International Music Festival at Santorini. What a great excuse to visit the island and enjoy two weeks of musical performances and concerts. I really enjoy Santorini – I first went many years ago. What I love is that most people visit on cruise ships – and then in the evening off they go again and peace returns to the island! But I guess over the festival this may not be the case so it would be a good idea to book accommodation in advance. Also in September, at Messolongi the Lord Byron Poetry and Art festival is held. This is where the poet died in 1824, supporting the Greek cause against the Ottoman Turks. There is also a Wine Festival on Kos and a Grape festival in Corinth…so plenty to see and do.
The good news is that the fuel shortages caused by trucker strikes may be a thing of the past. This should in turn end much of the transport disruption, which can only be good for tourism – and for you if you are planning a trip to Greece.
The government has enacted a civil mobilization order, essentially conscripting the drivers and putting them under orders to deliver the gasoline. The Greek government under both major parties has taken this step in the past to force strikers to continue working but is does place the ruling Socialists in a tight spot as many of the unions traditionally vote for them. However, the government has had to weigh the cost of upsetting them against the gains it will make from the majority opinion. Hopefully they will understand that, if the country continues to be held hostage by the unions, it will go under economically.
This month I am outlining the process of setting up a bank account in Greece, chatting a bit about renting out your UK home out when moving abroad and you will find words of wisdom from Smart Currency’s Charles Purdy.
Enjoy and do contact us at the OGC Resource Centre if there is anything you would like help with in the property purchasing process abroad. Even if you want to just chat about your plans the team are always happy to lend an ear! Call them on 207 898 0549.
Best and warmest of wishes,
Karolina!
Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited. greece@OverseasGuidesCompany.com
Phone 0207 898 0549
1, Lyric Square,
London W6 0NB
Setting up a bank account in Greece
EU citizens by law may open a bank account in another EU-member country as long as you have documentation that proves you are an EU citizen and are resident in a EU country and this naturally applies to Greece.
The following are among the banks that you will find in Greece: Alpha Bank, Bank of Greece, Barclays Bank, Citibank, Commercial Bank, Eurobank, GENIKI Bank of Greece HSBC Bank, Hellenic Bank, National Bank of Greece and Nova Bank.
Before opening a bank account in Greece it is strongly recommended that you check on service and interest rates. They can vary quite dramatically from bank to bank and are generally higher than the UK. As well as possible monthly administration charges for bank accounts, you may be charged fees for items such as replacement bank cards and new cheque books. However there are usually no charges for opening an account.
If you meet the terms and conditions, opening a bank account in Greece is relatively simple, even as a non-resident. You will be asked to provide forms of identification, which could include a copy of your passport, national identity card or a photographic driver’s licence. You need to be over 18 and may also be asked for a recent utility bill as proof of address plus recent bank statements and a reference from your current home bank. This reference must prove that you are a responsible account holder with a good credit rating.
You will also usually be required to make an initial deposit of around €150.
Most Greek banks provide cheque books (although cheques are not commonly used in Greece – I believe they need to be written in Greek but have not been able to verify this!), account statements, cards for ATM use, and facilities such as standing orders for the payment of utilities bills and credit card payments, overdraft facilities and payroll services. They also issue credit and debit cards – again, a cost comparison may reveal that not all banks in Greece offer free debit and cash cards with current accounts, so it is worth researching the accounts on offer from a range of banks.
To obtain a credit card, you will require a copy of your passport and a copy of your last tax return. You may also be asked for a residence permit and proof of income as well as a letter of reference from your current bank. Credit limits generally start low, (around €300 EUR), but are increased over time, providing the account is maintained responsibly.
Many banks in Greece offer both telephone and internet banking, and most offer internet banking in both Greek and English.
Greek banks are usually open Monday to Thursday from 08:00-14:30 and generally close earlier on Fridays, although hours may vary for each town and branch. Larger cities may have branches with longer opening hours, or may even open at weekends. For all banking operations, a passport or other photo ID is necessary as proof of identity.
Most banks have ATMs situated in front of, or just inside, the bank and are usually available 24 hours a day. The use of ATMs in Greece for cash withdrawals is widespread, and in most cases, you will pay a standard transaction fee rather than a commission on the withdrawal amount. Many ATMs can be operated either in English or Greek.
If you want to open a bank account before arriving in the country using an overseas branch of any Greek bank (or a foreign bank operating in Greece), your signature must be verified before the account can be opened. This can typically be done in the presence of a bank official. You can open most types of account before you arrive, including current and foreign currency accounts.
Maintaining an account in your home country is fairly straightforward these days even if you move to Greece, with access to the internet, and it is advisable. Exchange-rate fluctuations, which can affect transfers such as pension or mortgage payments, can add up and it may be a good idea to keep money that you may need to spend in the OK (for visits to the UK for instance) in this account.
It may interest you to know how numbers are written in Greece.One million is displayed as 1.000.000 instead of the UK format of 1,000,000) and eight and a half percent for instance is 8,5% instead of the UK format of 8.5%.
If you have any complaints or issues with a bank in Greece, you should visit the Banking Ombudsman website.
Just one thing to bear in mind: you would be well advised to transfer your funds from the UK to Greece - and back if needs be - via a currency company like Smart Currency. This is a far cheaper option than the banks will give you, both in terms of bank charges and better exchange rates. Give them a call on 0207 898 0541 and have a chat about this.
Can you afford to lose £4,000?
The economic crisis is certainly causing problems for people all over the world, yet in the world of international money transfers there are actions that can be taken to safeguard your money – especially if different currencies are required. International payments include payments between countries for property, the movement of pension payments, transferring savings or paying for any goods or services in a currency other than the one you have. Working with an international payments specialist rather than using a bank will allow you to save money over using the bank AND provide you with options that can minimise financial losses.
Moving Large Lump Sums of Money Internationally Do you need to pay a staged payment for a property? How about moving funds from the sale of a property abroad back to the UK? Regardless of the reason for moving money – or where you need to move it to - it’s important to realise that for every £/€100,000 you move, you could pay around £/€4,000 unnecessarily if you use a bank. Banks around the world add a margin of around 4% more than the margin used by international payment specialist. Using a bank rather than a specialist is similar to buying a property and then asking if you can pay and extra £/€ 4,000 for no reason.
Apart from saving money on the cost of buying currency, you can also ensure that the value of the money you’re moving doesn’t change. In other words, if you need to move a large sum of money within the next year and you’re happy with the current exchange rate, you can reserve that rate today yet pay for it at a later date.
For example, during the month of January 2008 Mr and Mrs Kingston contacted Smart Currency Exchange to discuss a payment of €89,400 due in November 2008. The Kingstons were happy with the current rate of €1.317/£1 so they booked a contract for the full amount and simply paid a 5% deposit to secure the transaction. When November came, the Kingston’s sent the money due, less the 5% already paid. If however they had waited until November 2008 to purchase the euros, they would have had to accept a rate of €1.155/£1 and pay an extra £9,521.
Whilst the euro has lost ground since it was at parity (€1/£1) in December 2008, in the grand scheme of things it’s still a fantastic time to purchase or secure a rate for euros to sterling. So if you originally bought your euros at close to €1.50/£1 and you want to now bring the funds back, now is the time to think seriously about doing it - especially given that many analysts feel that sterling is likely to continue to strengthen towards €1.30/£1
Moving Small Sums on a Regular Basis
When moving small sums of money on a regular basis you can benefit greatly by fixing the currency exchange rate if and when the rate is at a good level. For example, in January 2008 many Brits living in the Europe secured a rate of €1.31/£1 for monthly payments for a year or two on all their pension payments. That means that as sterling weakened throughout the year, they were unaffected by the rate change and received a rate of 1.31 each month.
In addition to saving money on getting better-than-bank exchange rates and fixing rates for future use, international payment specialists can also reduce the fees associated with transfers, shrink the transfer times from 5 days to 48 hours and provide a level of service that far surpasses the cold, impersonal bank. As for safety, specialist organisations like Smart Currency Exchange are strictly regulated and process payments through a bank, negotiating a better rate of exchange with the bank and then passing the savings on to the client.
It’s often the people that wait until the last minute that are forced into buying at the worst times – don’t let that be you. Request a Quote from Smart Currency Exchange below or give a ring today to discuss your options!
Renting out your property in the UK when you move abroad
Given that prices on house sales have dropped considerably in the UK, you may be wondering if your best bet may be to hang on to your property after moving abroad and then sell it later. It also means that if your move does not go according to plan you have at least not burnt your boats completely.
If you decide to keep your property and rent it out, then two more decisions are paramount:
Firstly, furnished or unfurnished?
If you are like me, then you want to take all your precious things with you. If you are like most other people, you will be delighted to leave them behind and completely refurnish abroad. First prize would of course be that you leave all your furniture in your home. You rent it out furnished and then, with the proceeds from the rental, you have enough to rent and buy new furniture abroad, and save yourself a bundle in shipping costs…but it doesn’t quite work like that.
Furnished properties need to be furnished to a very high standard, and all soft furnishings need to be certified as fire resistant. On top of that you may not get much extra rent on a fully furnished property. I know when I rented here in London the rent was the same furnished or unfurnished, so you may decide it’s not worth leaving all your treasures behind.
You do need by law to leave a few things behind for your tenants however; things like a stove, fridge, washing machine and garden tools/lawn mower if they will be looking after a garden..
Letting Agents
A letting agent will find tenants for you, arrange necessary maintenance, repairs and inspections, and generally look after your property. You’ll pay for the privilege of course – 10-15% plus VAT of the rent your tenant pay will go straight to the letting agent.
You do need to keep on top of things with your letting agent, for a number of reasons.
Letting agents, like real estate agents, are optimists – do your own research on what properties like yours are renting for
You need to make sure inspections are carried out, such as the annual gas safety inspection and regular (6-monthly) visits to your property by the letting agent
You need to read the check-in and check-out reports and compare them – your letting agent will probably rely on you to highlight problems
It can seriously affect your ability to pay your mortgage if your tenants are not making rent payments on time, or if your property is vacant for a while. Keep a contingency fund in the UK of around 3 months rent to cover such eventualities if possible. Keep in touch with your mortgage company if you do start having difficulty making payments
A letting agent may not pursue unpaid rents with as much vigour as you would like them to – you may need to step in and sort this out. I would insist on a monthly debit order: if your potential tenants balk at this – I would look for other tenants!
You will need to keep re-decorating your property to maintain a high standard of tenants – and remember that some tenants can do considerable damage in a short space of time
If you do think your house may be due for some redecorating, try to arrange for a friend or family member to look over the property with the letting agent – they may give you a clearer idea of what needs to be done
It is much better to keep a good tenant on a lower rent than it is to keep raising the rent – check-in and check-out inspections are costly, and you may have vacant periods between tenants. You’re also liable for council rates and utilities when the property is vacant. My parents lived in a rented home for years and never had the rent increased. They however carried out all maintenance and repairs and left the house in a far better state than when they had first occupied it!
Read and understand the tenancy agreement you sign with the tenant – keep an eye especially on minimum notice periods. You can also specify a break clause, where you can ask to get the property back if you need it.
Despite the costs and hassle, most emigrants choose to use a letting agent rather than relying on relatives or friends to look after their property. There is quite a lot of paperwork involved, both for tax and ongoing things such as check-in/check-out inspections, and even to change utilities over between tenants – this could prove a nuisance for friends. There are also health and safety regulations for things such as fire alarms, extractor fans, boiler inspections, electrical inspections of appliances, and even requirements for fire escapes in some properties, all of which needs to be documented and kept up to date. There is also a lot of responsibility involved in choosing tenants and collecting rents. You don’t want to feel obliged to fly back to the UK when anything goes wrong.
You will need to let your house and contents insurer know when you are letting out your house, and may need to arrange special landlord’s insurance. The premiums may be a bit more than you are paying now, but you may be able to reduce your contents cover if you are letting your property unfurnished.
Make sure you understand the conditions of your insurance, especially if your property is going to be empty for a couple of weeks – you may need to get your letting agent to visit the property at set intervals and document their visit.
You also need to let your mortgage provider know if you are letting out your home. They may ask for a one-off extra payment or impose other conditions as they see fit.
Remember too that before you leave the UK, you’ll need to contact the HMRC to register as a non-resident landlord.
And finally, you need to make very sure that you can cover your costs with the rent you receive. The rental income needs to cover your costs such as mortgage (if applicable), insurance, maintenance, rental agency fees, change-over costs, provision for vacant periods, tax and so forth.
Good luck – and remember: the OGC Resource Centre is just a phone call away at 0207 898 0549. They have oodles of advice and recommendations that may just be the thing you need to make your property journey easier! You will be under no obligation to use their suggestions nor will it cost you anything.
Intasure
As an owner - or a potential owner - of a home overseas, you will already understand the importance of protecting your valuable asset. Until now it has been hard to find an insurer that provides comprehensive protection and the flexibility you need to cover your home abroad. Luckily I have found someone who does all this – and more – they actually insure properties in more than 40 countries! Whether you are actually living there or not, or even if you have let it out, their policies are designed to cover every eventuality.
If you would like more information on this please click on the link below or contact me at 0207 898 0549 and let’s have a chat. Last month alone no fewer than 25 people clicked on our insurance link and purchased insurance through Intasure – not a bad recommendation in one month alone! Intasure
What can the OGC Resource Centre do for you?
Well…some would say it would be quicker to ask what they can’t do! Over the years, talking to hundreds of people about buying and investing in property abroad on a daily basis, there is very little they don’t know. They have covered just about every base - plus many own their own properties abroad too.
Over the years they have sourced a huge number of professionals who can help with the property process, both through personal experience and from recommendations received from other satisfied OGC readers.
You are welcome to give them a call at 0207 898 0549 – this is currently a free service and you are under no obligation at all to use their recommendations. Here’s what other happy OGCers have had to say:
“…Let me say how happy Philip and I are with your [OGC Resource Centre] service. You have opened so many doors for us….I like to take things one step at a time, to fully take on board every situation, but I could never have been prepared for the multitude of options that you have presented us with. …You can be sure that we will be using your recommendations because we are gaining more and more confidence in your company and that is all down to the interest you take and the advice you give.”
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"Hi, Having found the forum, subscribed to the free newsletters & purchased the Guide to purchasing property, it was amazingly easy using the tips & suggestions, to define my requirements & establish my strategy for what I really wanted. Then once introduced to the Guides Company's network of friendly, helpful associates, everything fell into place. And this despite some very attractive, but potentially risky, alternatives which I could have easily tempted into. However, I had a plan to keep me on track & knowledgeable friends to draw advice from. I have now successfully purchased a unique property, which I believe I will enjoy during my future retirement in a friendly to you, your colleagues & all your kind associates & their unique way of working. Best regards, Brian Dorey."
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Just pick up the phone at 0207 898 0549 and the OGC Resource Team will be happy to help you. They are available Mon-Fri from 9am to 6pm.
Buy the Guide: Let me help you plan your property purchase...
The media is filled with doom and gloom, but just because the economic outlook is a little on the gloomy side it does not mean you have to postpone your plans to either buy a second home or move abroad. On the contrary, it actually couldn’t be a better time to buy, providing you do your sums correctly, buy in the right place and use reliable, professional people to help you.
Let the Guides help you with all this – and more. Every step is clearly and simply outlined, starting with the initial idea to buy all the way through to areas, how to buy land, investment options and many top tips. What is more, there’s a money-back guarantee if you don’t like the Guide so you have nothing to lose!!
The Guides are written by OGC staff members who know the countries intimately andin some cases own their own homes there. They cover Cyprus, France, Greece, Portugal and Italy plus there is a wonderful Emigration Guide that would benefit anyone thinking of moving abroad on a permanent basis. The Guides are utterly honest and take a straightforward, no-nonsense approach to the property buying process and all the other aspects that such a move will raise.
Here’s what Mark Welch wrote:
Hi there. The info that you've sent me has been absolutely invaluable. When I actually visited I had YOUR buying guide amongst other info of yours in my hands when I got off the plane. When I did the business side of the deal, it was YOUR guidelines I followed (to the letter in some instances) and that reassured me I was doing everything I could to protect myself. I can't thank you enough. Thank you, Thank you, and Thank you.
Regards,
Mark Welch
To get more information on each guide on offer, or to order your copy please select the country below:
You are also welcome to phone the OGC Resource Centre where you will find a team of friendly and helpful people happy to assist with yourqueries. The number is 0207 898 0549
That’s it for another month…
I so hope that all your plans to buy a property in Greece are still on track. Times are hard, that’s for sure, but there will never be a better time to buy than now, when prices are lower that they have been for a very long time. And remember, any help we at the OGC can give, just pick up that phone. You will NOT have to listen to endless options and push endless buttons…!
Warm wishes until next time,
Karolina!
Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited.
