Greece Buying Guide Monthly Newsletter
November/December 2009

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In This Months Issue You'll Find:

Message from Carol for November 2009

Zone in on how Greece’s new zoning plans may affect you…

What do pensions, mortgages, property, and boats all have in common?

Using a Mortgage to secure an overseas property - what's the scoop?

Who is Elaine Ferguson and why should you care?

Christmas Special – 25% off any of our Property Buying Guides

Get the kids involved in Greece NOW: start teaching them about Greece before you buy rather than after…

A buyer pays for 2 hectares of land…but only gets 1.  What now?

Did you know we have a Greece Forum loaded with tonnes of info?

Hello there.

How are you dong in this very autumnal November?  Any fireworks for you – literally I mean?!

When I send out my monthly newsletters I often receive feedback.  Sometimes I hear happy tales of successful property purchases, sometimes ones that make me very sad, telling of things that have gone really badly wrong – see later. And then a whole bunch in between – sometimes when my emails strike a chord about driving in Greece or mention my favourite island, Corfu, or some such…But one of the strangest things in connection with my newsletters happened to me last week… 

I got into conversation with two lovely ladies sitting next to me at the BFI London Film Festival as is my habit - no English reticence here…! Later we found ourselves at the bar, sipping on a glass of wine and chatting about ourselves and what we did. 

“I THOUGHT I knew your name” exclaimed Liz when I told her about writing my Greece newsletter; “I get your newsletter every month!” How strange is that?  Turns out that Liz’s aunt has a boat  hire company on one of the smaller Greek islands and Liz had thought about joining her over there…it gives the expression ‘small world’ a new dimension doesn’t it?

On to things Greek: as you no doubt know, Olympic Airlines is no longer in operation. They have changed ownership and are now called Olympic Air. As far as I can gather, they are still in the process of working out all their schedules and routes – they started business on 29th September amidst a welter of recriminations and unpleasantness I believe.  This because, although they accepted previously booked Olympic Airlines tickets, some destinations were no longer scheduled plus times of flights had changed too. Also points gathered on any type of frequent flyer plan are now null and void…how very irritating that must be.

On Corfu St Spyridion, the island’s Patron Saint, was commemorated on the island on the first Sunday of November. His mummified body, accompanied by a procession, bands and most of the island’s population, was carried around the town followed by officials, dignitaries, contingents of the armed services, boy scouts, girl guides and school children in their Sunday best. I missed this when I visited the island in my youth and have never forgiven myself.  If you were there(or anyone you know) – especially if you have photos - let me know – perhaps we could have a chat about it.

What’s on offer this month?  Well, I tell you of some very encouraging plans being put in place by the Greek Government to control property development, ask what pensions, mortgages, property and boats all have in common and pop in an intriguing suggestion as to how to get the kids interested in Greece.  A heartbreaking tale from a reader and a currency insert from Smart Currency’s Charles Purdy with the tantalising title “What do pensions, mortgages, property, and boats all have in common?” round off this month’s newsletter, which I hope you find helpful.

As always, the OGC Resource Centre awaits your call on all matters relating to your Greece property adventure.  Please remember that a call places you under no obligation at all.  There is no ‘hard sell’ at all, only good, solid recommendations and if you just want to discuss your plans the friendly team will be happy to chat.  

Kind regards,

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

Zone in on how Greece’s new zoning plans may affect you…

One of the things that I admire about Greece is that they are determined to retain the character of their country and not to have it completely swamped by the dictates of foreign buyers as has happened in other countries. Ever read a book called ‘Voices of the Old Sea’ by Norman Lewis? It deals with exactly this, in Spain…and makes heartbreaking reading. There are of course a number of buyers who turn to Greece for the sun and a cheaper, easier lifestyle, but what I have discovered is that most people who relocate to or buy a holiday home in Greece have a genuine love of the country and its people.

Environment Minister George Souflias is trying to strike a balance between over- development and the need for Greek tourism to make the most of the country's natural resources - "…bringing order to the building anarchy of Greece" he calls it.

The first and long-awaited tourism-zoning plan was unveiled before Parliament on May 2 and sets the guidelines for the industry's development over the next 15 years. The plan aims to promote sustainable development while extending the tourist season, providing more tourist activities and increasing Greece's competitiveness in the tourism market.

It splits the country into 10 categories, including already developed tourist areas, developing areas, metropolitan areas, protected habitats, archaeological sites and traditional settlements. You may want to bear some of this in mind if you are thinking of buying. If a tranquil, isolated existence is what you fancy, it would be best to avoid the areas that are earmarked for development. If, on the other hand, you are a party animal or are considering investment options, then the developing areas may be more to your taste.

"According to the experts, around one million Europeans are interested in buying a holiday home in our country," said Souflias. Holiday homes increase tourist development, the minister added, stressing that out of the 55 million tourists that visit Spain each year, 37 million have bought a holiday home there. This figure seems unbelievably high – but then, who am I to question a politician?!

Priority for large scale holiday home development will be given to the coastal areas of the western Peloponnese, Aitolo Karnania, Epirus, eastern Macedonia, Thrace, eastern and south-eastern Crete, southern Rhodes, western Zante and the wider area around Volos. Golf courses are going to be built in or near the bigger cities like Athens, Thessaloniki, Patras, Volos and Ioannina, plus on the islands of Crete, Corfu, Rhodes and Zante.

The plan also wants to limit development in already overdeveloped areas. To make sure that these areas maintain their income from tourism, the plan outlines a host of measures designed to improve their appeal, such as parks and encouraging investment in smaller luxury four- and five-star hotels.

When I was over on the Ionian Islands, especially on Zante and Corfu, there was a lot of talk of changing gear from the ‘Lager Lout’ and ‘Bucket & Spade’ type tourism to a more discerning, upmarket type of tourist, one who comes because he loves the country rather than wants to party late into the night.

Give them a ring or fill out the following property form: http://www.GreeceBuyingGuide.com/property.htm

What do pensions, mortgages, property, and boats all have in common?

They could all involve the process of moving money internationally. 

Many ex-pats living in Greece have or will have to move money from the UK to Greece (or vice versa) and when doing so, there’s the matter of changing sterling into euros (or vice versa). This small matter often has large consequences when people fail to understand the risk of costly loses throughout the international money transfer process. 

When transferring money between countries with two different currencies the losses occur through bank charges, poor exchange rates and bad timing. All three types of losses can be drastically reduced by using a currency exchange and international payment specialist. 

Specialists are able to provide better exchange rates than those offered by a high street bank. Where the bank often sets their exchange rates in the morning, specialists call into the market floor and get the best possible live exchange rate which is often 2 – 4% better than the rates listed at the bank. On £50,000 that’s a 1- 2k savings! Furthermore, specialists concentrate on one thing and one thing only – moving money. By doing this, they understand where fees are charged and how they can be avoided. Aside from good rates and fee reductions, Specialists have a few options that allow clients to create various money-saving strategies. 

This all sounds good theoretically but what does this mean in real life?  Let’s consider a pension, mortgage, property and a boat payment!

Pension
Tony moved to Greece in 2007 and quite a bit has changed since then – especially the value of his pension. Lucky for him, in August 08 he contacted a specialist and signed up for a Forward contract. This allowed him to fix his monthly pension payments at €1.23/£1 for a value of €2,460. If he simply took the going rate, poor Tony would have received a decreasing pension payout to the tune of 15% by November 09. 

Mortgage
Sadly, unlike Tony, his neighbour Richard failed to talk to a specialist at the same time. His mortgage payment was € 700 per month. Richard paid his mortgage from the UK using sterling month by month through a bank. By November of this year, the cost had risen to £636. If he worked with a specialist, every payment could have been set at £569.

Property
The Streeter’s finally realised their dream of buying a property in Greece in September 2008. The initial payment on the home was €163,575. The quote that they got from a bank was for a euro exchange of €1.19 to the £1. However the Streeter’s were smart and decided to go to a currency specialist and obtained a quote of €1.223 to the £1. The couple saved €4,414 on their euro exchange by getting better-than-bank-exchange rates.

Boat
Ted often looked out to the Mediterranean and wished that he could buy a yacht. Over the past year, boating in Greece seems to have become more and more popular and Ted wished to see himself out on the water – not others! In a fortunate turn of events a family member left him a considerable legacy in the UK and Ted knew that his days of being landlocked were over. He found a boat in April and needed to come up with the payment in late June when the boat was being delivered. With this in mind, he contacted a specialist, discussed the cost and rates and decided to set up an ‘Order to Buy’. This means that if the euro exchange rate hit a certain level, the specialists would buy the currency. Thankfully, in late May, the rate hit €1.15/£1 just in time for Ted to make his payment. By setting up the ‘Order to Buy,’ Ted was able to save just over £4,500 .

Each individual and each payment is different – that’s why it makes sense to talk to a specialist about where you are and what you want to achieve. Unfortunately, specialists cannot predict the rates or make them change in your favour, however they can get you better rates than offered by the bank AND allow you to pick from various options that have the further possibility of saving you money. 

Charles Purdy is a Director at Smart Currency Exchange Limited – the only international payment specialists in the UK that works specifically to help people moving money for property purchases or for regular payments such as mortgage or pension payments. To move money to Greece or repatriate back to the UK, check out: 

 www.SmartCurrencyExchange.com/quote.aspx

Here is a testimonial received from a happy Smart client: 

Having recently used smart for the first time, I was impressed by the service provided, the level of information and the relative ease of the process.  Your representative was informative and open, even advising me going forward of times when the exchange rate was likely to dip, therefore to avoid if possible.

I transferred a relatively small amount. The costs were incredibly low, a token £5 charge, and the exchange rate excellent.  I will be using Smart going forward; it saves me time, saves money and means the recipient bank account gets more euros for my sterling.

I was also very impressed that from start to finish I dealt with the same representative rather than the ''whoever is on shift in the contact centre when you call''.  It is a personalised touch that the banks would do well to reintroduce. Thank you, Viv Hudson

If you are buying a property abroad today, one of your main concerns is going to be how to get a mortgage – very few of us can slap the full price on the table in cash! You don’t have to be Einstein to know that this has become far more difficult since the onset of the credit crunch…unless of course you don’t watch TV or read the headlines on every billboard or newspaper! It has also become more difficult to raise a mortgage for a home abroad, a fact you need to consider at the outset of your property search.

So…what to do?

For a start, you will need a far larger deposit than before.  Mortgage lenders are insisting on this and are not likely to drop their requirements any time soon.  What does this mean to you?  Well, probably that you will have to find in the region of 25% of the value of your purchase in cash …a frightening prospect for many. HSBC's deal, the cheapest at time of writing, demands a 40% deposit or equity stake - as does the two year fixed mortgage on offer from Cheltenham and Gloucester. Meanwhile, Woolwich's two year fixed rate mortgages require borrowers to put down at least a 30% deposit.

According to recent research by Moneyfacts, borrowers now need to find a deposit three times higher than they would have needed two years ago ( Moneyfacts incidentally is an independent financial information provider in the UK). This means that, on a mortgage of £150,000 you would now need to put down £39,000.  That is £25,500 more than would have been required before the credit crunch – frightening isn’t it?

There are a very small number of lenders who are prepared to provide far higher loan to value (LTV) deals, but these mortgages are liable to be much more expensive.

So – again, what to do? 

Well, I guess there is always the tried and tested way – borrow from willing parents – the Bank of Mum and Dad as it’s now being called!  That’s if they have not been hit by the credit crunch too.  Also, if you are saving towards a deposit, you need to make sure your money is getting the best possible interest.  A warning here however:  make sure it is lodged with a reputable company who will look after it for you.  I was pleased that my pennies were with Lloyds Bank as the crunch hit:  they are simply too important to be allowed to fail…
 
What I would say is that at this point it may be a really good idea to consult an IFA (Independent Financial Advisor).  What do they do?  Well, many things, but what concerns you here is that they would look at your particular financial status and work out what would be the best possible way to fund your property purchase.  They have entrée to many mortgage offerings and will be able to give you an idea as to which would best suit your circumstances.  A quick chat to the OGC Resource Team could help you here – they have a reputable IFA they could recommend. Give them a call on 0207 898 0549 and have a chat about this.

When buying a home abroad a route that many go is to remortgage their UK property and use those funds to buy abroad.  Sadly the credit crunch has affected even this option. The value of your house may well have dropped in the current market, and this in turn means that your equity will have dropped.  Ultimately you may struggle to remortgage at all in the current climate.

A mere three years ago it was possible for first time buyers to borrow mortgages equivalent to five or six times their yearly earnings. 100% and 125% mortgages were also widely available, meaning that home buyers could purchase property which was actually beyond their means.

Fast forward to 2009 and high LTV mortgage lending has all but disappeared. Not unreasonably, lenders today are looking to lend to people who are going to pay them back - they cannot afford for customers to default on their debts. This may look like an obvious requirement but that’s exactly what went wrong worldwide recently: people were loaned money that they couldn’t pay back …and we all are suffering as a result.

In addition, how much money they are prepared to let you borrow is now far less. They will take into account too financial commitments such as school commitments, loans, and credit card debt as well as what you earn when deciding whether to offer you a loan. This means that if you are planning to apply for a mortgage it would be a very good idea to first ‘get your house in order’ and pay off or reduce loans appreciably.

All this means that you need to make sure that you have a good credit rating.  How to do this?  Well, if it's been a while since you looked at your credit record or you think your record may be less than spotless (for instance if you have defaulted on any payments), you should check your Experian credit report and get your credit score. You can do this by clicking on: Free Experian Credit Report

This will allow you to know whether you have a good credit record or not.  The unfairness of this – if I can put it that way – is that the less money you have borrowed or the fewer accounts you have run up, the less information will be available to provide you with a good credit record – a bit of a Catch 22 situation isn’t it?

How to find the Best Mortgages for You

As stated earlier, I really do think that the best route to take is to discuss your particular needs with an IFA.  They will have a number of options available and will take your particular circumstances into account. Give the OGC Resource Team a call on 0207 898 0549 as they have access to IFAs that work specifically with people buying overseas - they will point you in the right direction.

And remember – times have been hard, but better days are ahead and things will get easier.  Never give up on your dream… 

Who is Elaine Ferguson and why should you care?

Elaine is the ‘Client Services Manager,’ for The Overseas Guides Company (OGC) and the official company karaoke superstar.  With a degree in Music Technology & Management (Staffordshire University) and a love for singing, mixing and DJ-ing, Elaine loves all things musical.

When asked how she arrived into the interesting world of emigration and buying overseas property, Elaine commented, “When I came out of university, jobs in the music industry were almost impossible to get.  And although I love music, I didn’t want to be a pop star – my actual passion was for the business side of things…”

Elaine started off her working life in the wine industry – she worked for one of the largest wine distributors and learned about customer service, marketing, sales and how business really works.  After an excellent experience, she relocated to London with her boyfriend, and went to a wide range of interviews.

As soon as she met the team at the OGC, Elaine knew that she found her next ‘home.’  The team needed someone that was eager to learn, assist readers and find ways to provide a better service.  Since June 2008, Elaine has really grown into her role and enjoys working with readers and hanging out with the OGC family. 

When asked what Elaine likes best about her position, she explains, “I really enjoy helping people.  I know that might sound cheesy but it’s great to get feedback that I prevented someone from losing their money or helped someone to ensure they’re property purchase was legitimate.   One time a reader called in to tell me that I saved her over £5,000 due to one of my recommendations.  Not everyone gets to help people and I feel fortunate that in some way I might be making things better or easier for our readers.”

This is what an OGC reader had to say about Elaine:

I am so grateful to know there is someone like yourself who can keep people right, and for hard working people not to get ripped off. You’re doing a wonderful job -  I'M VERY GRATEFUL FOR ALL YOU DO!

Pamela McVey

To speak to Elaine or another 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. And if you ask nicely, you might even get Elaine to sing you a song!

Christmas Special – 25% off any of our Property Buying Guides

Are you stuck for that ‘perfect’ Christmas present?  Would you like to get something that is different?  Rather than purchase bubble bath, smellies, a scarf or any other impersonal gift, get a Buying Guide!

The guide is perfect for anyone interested in buying and or moving abroad.  Full of fantastic information and in a format that’s easy-to-read and nicely packaged your partner/friend/relative will definitely be pleased to receive this unique gift.

And in the spirit of Christmas, the OGC is offering all Guides at the discounted price of £15.98 (digital – meaning, you’ll need to print it out from your printer) or £22.48 for the professionally printed hard copy.  Guides on offer are for: France, Greece, Italy and Cyprus and each guide comes with 2 bonus booklets including worksheets to fill out during the property buying journey and ‘your questions answered.’ 

This offer is only available until 24th December and you need to enter the code XMAS3485 for the discount to apply.

To get more information on each guide on offer, please select the country link below:

http://www.CyprusBuyingGuide.com/guide.htm
http://www.GreeceBuyingGuide.com/guide.htm
http://www.ItalyBuyingGuide.com/guide.htm
http://www.FranceBuyingGuide.com/guide.htm

Also available to buy soon is the brand new, updated Emigration Guide.  Note however we still so have some of our free, first draft, un-polished guides available, but they are rapidly running out. If you would like one, please go to: http://www.emigrationguide.com/thankyou.htm

If you have any questions, give the OGC Resource Centre a ring on 0207 898 0549 and they’ll be happy to assist you.
Here are some lovely words from a guide reader:

I found your guide to be very insightful. I have learnt so much from it. The list of questions to ask developers is great as you can print out several. The money aspect and losing out on the exchange rate was not something I had even considered. This guide is what everyone should have and read BEFORE buying property abroad. I also find your updates very useful. It’s nice to know there is someone that you will tell you both the good and the bad. Thanks for a great read.
Jasmin Brown
Scotland

Get the kids involved in Greece NOW: start teaching them about Greece before you buy rather than after…

I found such an intriguing and exciting thing for children to do at the British Museum, right here in London.  If you visit Greece every year for your holiday or are planning to buy a home there, this is just the thing to educate the kids on what Greece meant to the world.  Here are just three examples of wonderful sessions on offer:

• In this gallery-based session, students take on roles as Greek envoys, visit the court of the Persian king and meet King Darius himself. They compare the values of Greece and Persia and experience first hand how there are different points of view about historical events

• How can you tell the difference between Heracles, Athena and Hermes? How do you tell a story using pictures? How can you tell what is going on in the stories? The Museum’s Schools Team uses pictures from Greek pots to help students find out

• This session is based in the Parthenon Gallery and explores how the temple’s sculpture and architecture celebrated the greatness of Athens and created a sense of identity among her citizens.

To find out more about this, go to:
http://www.britishmuseum.org/learning/schools_and_teachers/taught_sessions/ancient_greece_sessions.aspx

A buyer pays for 2 hectares of land…but only gets 1.  What now?

Here is a question that broke my heart – I am withholding the reader’s name:

We purchased our farm from an estate agent and were told that it was just over 2 hectares in size. All the official paperwork confirmed this as the size.

Last week when trying to fit in our crops we measured the land and found out that it is only 1 hectare.

The agents say that this can not be the case as the official papers confirm that the land is 2h, and say that this type of mistake does not happen. They also tell us that they do not measure the land that they sell only going on the official figures.

How can I proceed to recover half my money as I only got half the land that I was buying?

Hindsight is 20/20, but there is only one way to make sure that this does not happen to you and that is to get an independent surveyor, a ‘mechanikos politikos’ or an architect licenced to survey to perform a survey and make their findings a condition of sale. 

You also need to make sure upfront exactly what will be included in the survey. A full structural survey should include the condition of all buildings, particularly the foundations, roofs, walls and woodwork; plumbing, electricity and heating systems; and anything else you want inspected such as a swimming pool plus its equipment. Plus the size of the land of course…

Sadly, the only route for this unfortunate buyer to go is probably to litigate, but this can take a very long time, may cost a lot of money and who knows if the owner is still around?  And still has the money to reimburse?  Or will even be found guilty - as I mention in the Greece Property Buying Guide, once all the contracts are signed you pretty much accept the property as is – ‘Voetstoets’ as we say in South Africa. The seller may even have sold in good faith and not be aware of the discrepancy… a really thorny issue, isn’t it?

"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 & more attractive climate than the UK.

Thanks again you, your colleagues & all your kind associates & their unique way of working. Best regards, Brian Dorey."

Did you know we have a Greece Forum loaded with tonnes of info?

We have an excellent Forum to help you with your concerns - and we would really welcome your input. Just click on:
http://www.gbg-forum.com/

There you’ll find stories from buyers that may well interest you. There are also reviews, questions and all sorts of feedback on moving abroad and the whole property buying experience that you may find useful.  Far better to learn from somebody else’s findings than make the mistakes yourself…

It’s a community for you to voice your concerns, offer your ideas and hopefully get information that will make your journey easier! Perhaps you have a few top tips of your own for moving to Greece? Are there problems you have come across along the way for which you have managed to find easy solutions? Do you perhaps have a story of your own which you would like to share with your fellow readers?

Go to the above link and any questions you may have will be answered by me.  And it could just be that, if I don’t have the answer for you, someone else will!

To give you an idea of the kind of questions asked, Esther Fhim asked me what health care and hospitals are like on Kefalonia. To see my reply, please go to the Greece forum at: http://www.gbg-forum.com, under ‘Living in Greece’.

Bye for now!

I really enjoy writing to you each month about the country we love, but I just want to make sure that, in doing so, I am really being of assistance to you. 

Would you mind taking just a second to let me know your thoughts on my monthly newsletters?  Which are the things that you find the most interesting or the most helpful?  What would you like to see more of, what do you think could be improved, is there anything you would like added? 

Please email your thoughts to:  Greece@OverseasGuidesCompany.com

Kind regards,

Karolina!

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

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