Greece Buying Guide Monthly Newsletter
January/February 2010

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In This Months Issue You'll Find:

January Message from Carol

How to make your overseas buying dreams come true this year

Transferring Money Internationally for Dummies by Charles Purdy

Who is Joe Goodwin and why should you care?

2009 – The Dark Age of Property by Kim Brown

Getting good deals on flights overseas

Do you have your Guide yet?

2010 – It’s a buyers market: could this be the year you realise your dream - in spite of the economy?

Let the New Year begin…

Hello to you in this New Year…is it just me or does this year of 2010 seem to be a brand new start?  The year of the Tiger according to the Chinese zodiac, and they don’t mean Tiger Woods I’m glad to say, about whom I have heard more than enough already!

Somehow I get a feeling of excitement and of change in the air.  It’s a whole new decade, to do with exactly as you choose - a time to take stock and to set off on the path to making your dreams come true perhaps?

I holidayed in America in December and I cannot tell you how much fun I had.  I had not visited the States before – not really wanted to actually.  My interests lie in history and antiquities - that’s why my beloved Greece suits me so well - but I was so pleasantly surprised.  I had a truly wonderful time and the reasons were twofold:  I saw the most fantastic, iconic things in America and, from the very start of my trip, people went out of their way to make my stay a happy one.  Not only did the friends I stayed with really ‘push out the boat’ (as my mother used to say) and spoil me rotten, but perfect strangers were utterly charming and incredibly helpful.  “You’re welcome” was a phrase I became very accustomed to while travelling around.

When I reel off that I visited the Statue of Liberty, gazed at New York from the 102nd floor of the Empire State Building on a clear, sunny day and touched a piece of the moon at the National Air and Space Museum in Washington I can hardly believe it myself…and I saw so much more too!

I feel that I have cemented old friendships and made some wonderful new ones along the way.  I came back to my flat in London to a slew of invitations and friendly ‘welcome home’ calls and emails:  for the first time since moving here from South Africa four years ago I felt I was really coming home - could one wish for a better way to start the new decade?

Did you get to Greece over the Christmas celebrations?  I’d love to hear from you if you did.  As you may know, in Greece the end of the year doesn’t necessarily herald the end of festivities.  There is still the very important celebration of Epiphany on the 6th January. Known as Theofania or Fota, the event is said to have originated in the Eastern Orthodox Church, where it is also still recognised as the anniversary of the baptism of Jesus Christ. Most of the major festivities of Epiphany in Greece are held in Piraeus but smaller events are also held in many towns and villages throughout Greece. This is a very traditional Greek celebration, one which may interest tourists but is in no way staged for them.

It takes the form of a special ceremony of blessing the waters and the vessels that sail them. At Pireus a priest throws a large crucifix into the waters and young men brave the freezing cold waters to retrieve it. The person who finds the cross is believed to be blessed with good luck for the year ahead.  After the cross has been restored to the priest, the local fishermen bring their boats to be blessed by him.

After a church service, the priest visits local parish homes to bless them for the year ahead, holding a bunch of basil that has been dipped in the blessed water in one hand and the holy cross in the other. Also on Epiphany the kallinkantzari, the mischievous spirits who are said to be active during the twelve days of Christmas, depart the earth for another year, to the relief of young children!

I am hoping that you feel as optimistic as I do about the New Year:  that this is the year to take control of your destiny and turn all those dreams into reality.  And if your dreams include buying property in Greece, be it a tiny holiday bolt hole, a swish villa or a piece of land, I am ready, willing and able to give you all the help you need along the way.  The OGC Resource Team is standing by to help you too – remember that this service comes at no cost and you are under no obligation to use our recommended property people if you choose not to.  Give us a call on 0207 898 0549, even if it is just for a reassuring chat – we are always delighted to hear from you.

Enjoy this month’s newsletter – I have an article on how to make your property buying dreams come true and a bit about the ins and outs of transferring money abroad made easy.  I also introduce you to Joe of the OGC Resource Centre, chat about booking your trips through Opodo and discuss whether this in fact may be a good time to buy property in Greece before signing off for another month.

Kindest regards,

Karolina!

Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited.
mailto:greece@OverseasGuidesCompany.com
Phone 0207 898 0549
1, Lyric Square,
London W6 0NB

How to make your overseas buying dreams come true this year

I am unabashedly a list girl, so yes:  I will be making a list of how to make your property purchasing dreams in Greece come true, but there is one thing that is by far and away the most important step.  You must want it enough. 

I know that sounds simplistic but it is nonetheless THE most important aspect of your dream.  The reality is that there will be a fair amount of work ahead and you may encounter a few problems along the way so you need have the determination to push on with your quest, but remember that countless other people have done it and you can too.    

Here comes that list:

• Buy the Guide: The Greece Property Buying Guide is an indispensable tool that will be of enormous help.  If you do not have your copy, go to: 

http://www.GreeceBuyingGuide.com/guide.htm

Once you have it, read it from cover to cover

• Cost: It is essential that you have a clear idea of exactly how much you wish to spend from the outset – and then that you stick to your budget. If you need a mortgage, know what you can afford to repay. Also have a good knowledge of all costs that you will incur on purchase

• A Currency company: Open an account at a first class currency company, one regulated by the Financial Services Authority (FSA) under the new Payment Services Regulations 2009. Go to: http://www.smartcurrencyexchange.com/ for an outline as to how they can save you heaps of money.  And remember:  if you decide on a price to pay for your new property it may be best to lock your currency in at that day’s rate.  Certainly people who did that in early 2009 laughed all the way to the …well, currency company! 

• Location: You will need to decide exactly where you wish to buy:  If you think you may want to rent it out at any stage, then location is of primary importance.  Think very carefully about access, both by air from the UK but also the distance from the airport once in Greece.  Again, if renting out or if you are using the property as a holiday home with children in the picture, you will need to be near the sea or at the very least have a swimming pool if not

• List your requirements: Make a thorough list of your requirements, specifying what is absolutely essential to you:  3 bedrooms, a bathroom rather than a shower (my pet requirement!) etc – and don’t be swayed, no matter how pretty the house is  

• Views: Ensure that your lovely view cannot be obscured:  One of my saddest memories is of a couple who bought a flat in Crete with a heavenly sea view.  When they next visited the property, a huge block of flats totally obscured their view – they immediately put their property on the market, with their dreams in tatters

• Reputable Estate Agents: Decent agents will happily listen to your questions and answer them as best they can (plus we can help you find those agents!)

• Offers: You may be able to make offers of up to 20% less than the asking price in today’s market:  consult your agent

• EOT Licence: This licence is a prerequisite to renting out your property in Greece – and don’t let anyone tell you differently.  You need to establish this right from the start as certain homes do not qualify for the licence

• Lawyer: Always use your own independent lawyer.  I cannot tell you how many sad tales we at the OGC have heard from folk who have used lawyers recommended by their estate agents.  If you are recommended someone once in Greece, always ask for personal references and check them

• Sign ONLY when contract checked and correct: In the excitement of buying your property you may overlook the importance of getting your contract correct. If you don’t fully understand everything, get the contract translated, and changed if needs be

• And finally – take your time! Do not allow yourself to be rushed into anything – it’s a huge decision and one that you will have to live with, so make sure it is the right one. 

If you need any help at all just phone the OGC Resource Team on 0207 898 0549 and they will gladly assist you where they can - there is no cost or obligation to use our recommendations at all.

Transferring Money Internationally for Dummies by Charles Purdy

When I was 27 my mother purchased me ‘Cooking for Dummies,’ and at first I took it as a bit of insult [especially as I wouldn’t say her cooking was “cordon bleu”].  Okay my cooking wasn’t great but I was still alive after ten years away from home. After flipping through the book, I actually learned quite a bit. Without it I would still be wrestling to peel hard boiled eggs – rather than painstakingly picking the peel off, if you run cold water over them for a few minutes (after boiling them), the shells slide right off with almost no effort! 

As for international payments…making money transfers from one bank to another bank overseas isn’t exactly rocket science. There are, however, many ways to do it ineffectively and lose quite a bit of money in the process. The standard manner to send money to or from the UK is to visit a bank, request that a certain amount of sterling or euros are converted and then instruct the bank on where to send them.  During this process there are three main areas where people go wrong. They include: getting poor exchange rates, paying unnecessary fees and finally failing to order currency at a good rate now for purchase in the future. Let’s look at each one of these individually.

Getting Bad Exchange Rates
Similar to buying produce in a tourist location abroad rather than a village shop, buying currency from a bank is more expensive than buying it from a currency specialist. A bad exchange rate is simply paying more for the currency than you can get it elsewhere. You wouldn’t go buy vegetables in one shop if you knew that you could save €5 by getting them elsewhere! The issue with currency is that you won’t simply save €5 – you could save €1,000’s by shopping around. For example, some currency organisations save clients up to 4% over using the bank. This means that an instant saving of €4,000 can be made when moving a large sum of €100,000 by using a specialist rather than a bank.

Paying Unnecessary Fees
Everyone knows that the banks like to charge fees – overseas you might get charged for withdrawing money or writing a cheque.  Many banks even charge when you deposit money. Again, by using a specialist currency organisation, fees can be eliminated or reduced. Specialists know how the systems work and they know the most cost-effective way to move money. Many expats abroad move their pensions from the UK overseas every month or quarterly. Fees in the UK can amount to £25 for each transfer (that’s £300/year in fees alone!) – why pay that fee if you don’t have to?

Order Currency Now for Use Later
There is one product – called a Forward Contract – that can assist people massively.  Imagine receiving your pension or a regular payment overseas every month and then imagine that every month the value of it decreasing due to sterling weakening against the euro. This is precisely what has happened over the past year and it’s totally avoidable. Currency specialists can help their clients to reserve the rate today and purchase it in the future – this means that if you get €1500 from your UK pension in month one, you can continue to get that same amount for the course of the year! Those that didn’t purchase Forward Contracts last year sadly watched their pension values decrease by over 20%.

Transferring money internationally is not a difficult process; however it’s easy to get lost and led astray by figures and doing things the ‘traditional’ way. There are choices available and substantial amounts of money can be saved by enquiring about alternatives to the bank. Currency specialists are regulated by and must be registered with Customs & Excise. Due to the fact that specialists buy large amounts of currency each day from their bank, the bank passes significant savings on to them that they fail to pass on to their own clients. By using a specialist you’re still effectively using the regulated banking system but getting a much better service and, often, a substantial saving.

Why not claim your FREE report from www.RegularPaymentReport.com on how to save money on payments to and from the UK?

Dear All,

Thank you for your speedy transfer to my bank account abroad, it was done the day after I sent funds to you.

I must say you provide an excellent service and would recommend it to my friends. Not only did you inform me by e-mail about the state of the currency market on a weekly basis, your regular phone update proved very useful. It’s not often that one comes across such an efficient company that does exactly what it promises and on time too. I will definitely use you again for future foreign currency transactions,

Sincerely

Ralph Long   15/01/10

To get an update on the Euro exchange rate, request a quote at Smart:
www.SmartCurrencyExchange.com/quote.aspx

Who is Joe Goodwin and why should you care?

Joe is one of the friendliest people in the Overseas Guides Company office, with a thirst for knowledge and an enthusiasm for his job that is utterly infectious.

Joe has a passion for music and started playing drums in various bands at High School, hoping to become a drummer in a professional rock band, earn mega bucks and have crowds of young ladies screaming his name!  It took him until the final year of university to realise that this was not going to pay the bills, so he moved closer to his next goal:  that of owning property around the world, including north Finland (Luosto perhaps?), Northern France, Southern Spain, Nuremberg Germany…

And how better to do this than to live vicariously and help Overseas Guides readers to achieve their property goals?  Arming himself with a BA Hons. in Business Management and Entrepreneurship acquired at Staffordshire University – “a great Uni but one that lacked a buzzing nightlife scene” to quote Joe, off he set to big, bad London and the bright lights to talk to people about their property hopes and dreams.

“Working in a sector that you are passionate about really helps when working late and going the extra mile to find solutions to our readers’ problems” grins Joe and adds:” Of course it will all help for when my dream of owning property abroad myself becomes reality!”

Joe loves building relationships for potential property buyers throughout the buying journey and is always enthusiastic about receiving updates:  “It’s essential to keep up-to-date and to expand our knowledge of the most recent developments and to learn of others experiences - that’s the way I can keep on helping buyers.”

So...why don’t you give Joe a ring and update him on how YOU are doing?  He will drum up all the help and support you need to make your property dreams come true this year!

To speak to a member of the OGC team, please ring Mon-Fri, 9am to 6pm on 0207 898 0549.  The OGC Resource Centre are available to you – free of charge – to offer recommendations, assistance and at the very least help to point readers in the right direction.

2009 – The Dark Age of Property by Kim Brown

Kim Brown, OGC Director, has a column in the UK publication Overseas Living and I thought I would include an article she wrote for their special supplement.

Last year will go down in history as being a dark and bleak year for the overseas property industry.  The ninth year of this new millennium started with a weak pound, greatly reduced lending facilities and a world wide panic regarding the future collapse of world economies.  In January, I vividly remember the discussion my business partner and I had – all our plans for expansion and growth were thrown out as we agreed our only plan of action was to avoid redundancies and survive the year.

The early months of 2009 brought unfortunate stories about British overseas property buyers having to find an extra £20,000 to £50,000 to pay for their dream property.  Many buyers started their dream purchase in 2007/2008 with a favourable exchange rate.  Sterling was over 1.25 to the euro and over 1.90 to the US Dollar but by January 2009 they decreased by 16% and 22%   respectively.  This meant that those that did not secure or fix a rate of exchange spent month after month watching the cost of their property increase in cost.

Emails and phone calls flowed into The Overseas Guides Company pleading for help.  Many buyers couldn’t raise the necessary funds and not only lost their dream property but also their deposit money too.  The sad aspect of the whole situation is that property buyers could have fixed a rate of exchange in 2008 even if they didn’t need to buy or use the money until 2009.  Hindsight can be a depressing thing.

Aside from the weak pound, the banking world was thrown into total chaos and loaning facilities were drastically altered or removed altogether.  For example, many buyers in Cyprus purchased a property assuming they’d get a loan for 80 – 90% of the value of the property, yet the loan to values changed to 60/40 (60% loan to 40% cash).  Imagine dealing with an exchange rate that has increased the value of the property by 20% and then having to find an extra 20 to 30% to meet the requirements of the mortgage?  Could things get any worse?

To compound problems even further, estate agents and developers started to go under talking client deposits and their dreams with them.  Many overseas property ‘professionals’ failed to carry insurance with the result that some property buyers found themselves left high and dry.  Some were left with debt, others with a part-built property and some discovered that ownership of their new home had been transferred to the banks to pay off the developer’s liability. 

Some Brits found themselves in the unfortunate position of being between house sales – they couldn’t sell their UK property and couldn’t meet their obligation of paying for the overseas property.  Those that made the sale of their UK property a condition of the purchase agreement were okay but those who didn’t were forced to completely on the sale.

Yes – 2009 will be remembered as the dark age of property.  The good news, however, is that positive signs have been report and analysts remark that the worst seems to be over.  

If you haven’t purchased overseas yet, you’re in a very fortunate position to learn from history and safeguard yourself.  What should we take from 2009?  Once you buy a property overseas, make sure to secure an exchange rate immediately so that the value of the property does not increase in value (Check out: Smart Currency Exchange Ltd the second you decide to buy overseas).  Regarding mortgages – get the facts.  Know that an offer in principle can and will change.  Find a way to secure the amount needed so that changes in loan to values will not affect you.  When selecting a developer or agent, research what happens if they go bust.  Will you get all your money back?  Finally, if you need to sell a property in the UK to buy one overseas, make the overseas contract conditional on the sale of your UK property to safeguard yourself.

If you want to read the article’s Kim writes for Overseas Living then go to:
http://www.overseasliving.co.uk/news/expert-opinion

Getting good deals on flights overseas

I have just returned from New York.  When I decided in June of last year to spend Christmas in the States I must confess I was in a bit of a quandary:  Did I book early in the year in the hope of getting a secure reservation over this busy season or did I wait until the last moment, hope to get a seriously rebated seat and risk not getting a booking at all? But then…what if, in these uncertain times, my airline of choice had strikes or, even worse, went under in the intervening months?

Well, the holiday was too important to take a chance on: did I really want to spend Christmas alone in London? So I turned to my old and faithful friend, Opodo.  Ever wondered what the name means, by the way?  Well, its based on "OPportunity tO DO” – I’m a veritable mine of information aren’t I!

Let’s face it, there are endless sites on the Internet where you can book all your travel arrangements, but I prefer to go with tried and tested companies – ones that I have used often before and been happy with – so I went ahead and booked. I did take the precaution of getting a few comparison airfares in advance, but none beat Opodo. 

All went well – I was surprised and delighted to get a reminder text from them the day before I left with date, time AND weather update for the following day – that’s what I call really good service. Fortunately I didn’t have to use the insurance policy I purchased through them but I did phone in with a few queries about it before my departure. Calls were taken personally – none of those endless, aggravating telephonic messages – and emails were promptly responded to and, all in all, I was a very happy travel bunny.

Why don’t you give them a try on:

Greece Property Buying Guide

If you haven't already purchased our excellent FULL Guide...why not get a copy today?

The completely educational guide covers the start to finish process of buying a property in Greece. Every step is outlined starting with the initial idea to buy in Greece all the way through to areas, how to buy land, investment options and many top tips. This guide is for anyone thinking about or currently in the process of buying property or land in Greece.

To get your copy go to:http://www.GreeceBuyingGuide.com/guide.htm

.

2010 – It’s a buyers market: could this be the year you realise your dream - in spite of the economy?

As I mentioned last month, it’s no surprise that there have been mounting concerns about Greece’s fiscal health, especially as the present government seems to have inherited these problems from a devious, duplicitous government who hid the true state of the economy.  The situation is not helped by a local population who are unwilling to take the drastic steps that may be only solution.
  
The Fitch rating agency (a global rating agency committed to providing the world’s credit markets with independent and prospective credit opinions, research and data) cut Greece's long-term debt to BBB+ from A minus. This is the first time in 10 years that the country has seen its rating pushed below an A grade. The agency said that this was due to: "The weak credibility of fiscal institutions and the policy framework … exacerbated by uncertainty over the prospects for a balanced and sustained economic recovery."

Greece’s finance minister, Giorgos Papaconstantinou, admitted that "the fiscal situation is dramatic". The head of the European Central Bank, Jean-Claude Trichet, appealed to the Prime Minister, George Papandreou, to enact "courageous" measures. "The situation in Greece is very difficult," Trichet told the European parliament's economic committee. "This calls for very difficult, very courageous but absolutely necessary measures."

And yet - economists are saying that 2010 has a good chance of becoming one of the most opportune years in a long time for your property success.  They say that, while others keep their cash in the bank, you should perhaps be investing aggressively.  While many give up on their dreams, perhaps now is the time to be investing in property in Greece?  One thing’s for sure:  it’s a buyers market.

If you need any help – with estate agents or such like, just call the OGC Resource Team 0207 898 0549 - there is no cost or obligation to use our recommendations and they may set you on the path to realising your dreams!

You can also fill out our property form

Let the New Year begin…

Do you, like me, wonder where the last ten years went to?  I celebrated the beginning of the decade with my daughter and her husband on a beach in South Africa.  Since then, I have recovered from cancer, sold my home, moved countries and now have a job that I love near my son in the land of my birth.  What are you going to do with the next ten years of YOUR life?

I hope you have found something of interest in this newsletter.  I am always pleased to hear from you.  Your input is what makes these newsletters worthwhile:  I want to be able to chat about what you would like to read so do let me know if there is a particular aspect of the property journey that you would like to hear about. And you can always call the OGC Resources Team to chat about your plans…

All best wishes and good luck as you set off into the new decade.

Karolina!

Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited.

Phone 0207 898 0549
Greece@overseasguidescompany.com
1, Lyric Square,
LondonW6 0NB