Kalimera again…

How are you?

I may have told you that I moved to London from South Africa a while back now? It was brought home to me quite strongly the other day what a lifestyle change that has meant. You may or may not know that the London Film Festival has been on - my son is, to use a phrase that I HATE, is ‘in the industry!!

He phoned one evening recently to ask if I wanted to go to the new Tom Cruise film and see the good Tom on the red carpet – and I couldn’t be bothered!! Well, it had been a long day, it was chilly, I had my feet up already in front of the telly….if you had told me back in sunny S.A. that I would pass by an opportunity like that I would have thought you were mad!!

I did see Sean Penn however…yeah, I know it’s not the same…but he both directed and wrote the screenplay for ‘Into the Wild’, which I thought was a moving and beautifully filmed story. I had read the book and knew how it ended – and even that didn’t spoil it for me!

On to Greece…I had such a wonderful reminder a few days ago as to why we love Greece, and the Greeks. Alasdare, someone who has recently bought in Greece, wrote the following – he is talking about trust:

“Living in a large city we are wary of people we don't know or who we don't have a cast iron recommendation on from someone who we do know…It's completely different on Crete. Trust is a given until proved otherwise.

Let me give you examples. We bought our land without having seen it first hand. We had made an offer on a plot that proved to have a forestry order on it. The agent was so upset at discovering this after we had returned to the UK that they offered to give us 500euros towards flights to come back and see a new plot that had just come on the market.

We couldn't get the time to see it so we bought it on the back of some picture and knowing the general area it was in. When we arrived two months after purchase to see it for the first time, the agent was so nervous that we would not like it that she could barely speak. It was perfect. Better than that that, it was outstanding. She had really taken the time to understand what we wanted, so there was never any doubt that it would be right for us.

Further examples: the architect paid the planning fees for us so we would not be caught up in the holiday season and delayed several weeks and we paid him back later - he didn't know us at all at this stage.

We had furniture delivered while back in the UK and the builder sent someone up to take delivery and they paid the outstanding balance for us. We had not asked him to, he just did it and we paid back later.

He ends by saying: “What else can I say............it’s a special place!!!” And I think we all are agreed on that!

And here’s me the cynic again – I don’t know that I would have bought a property sight unseen…..see ‘A constructive tale from a Greece potential property buyer’ further on in this newsletter - not everyone has been so lucky. However, I totally agree with the thought behind this – I too have experienced endless kindness from Greek people whom I hardly knew.

Right, here’s what’s up this month: I am going to discuss something that I am often asked about – the opening of a bank account in Greece. Then our Financial Guru Charles will have a word in your ear as to what is happening money-wise and still on the money trail I will be talking about CreditExpert, which alerts you to what is happening to your bank accounts as it happens. Then the afore-mentioned constructive tale from a Greece potential property buyer and I will finish off with a few kind words sent me by a Greece Buying Guide reader.

Please email me if any of this strikes a chord with you or if you want to add anything. As always, I can be reached on:

mailto:Carol@OverseasGuidesCompany.com

I love to have a chat so don’t hesitate to pick up that phone or give me your phone number - it would be great to speak to you. This week I spoke to someone who I had been writing to for ages - WHAT a difference it makes! I’m on 0207 898 0549, so make that call!!

Take care out there as the days get shorter and the weather closes in.

Warm smiles and hugs to cheer you up from

Carol (& Kim).
Greece Buying Guide: The Overseas Guides Company Limited.
mailto:carol@OverseasGuidesCompany.com

Opening a bank account in Greece

Money to purchase property in Greece must come directly from a Greek bank account. All necessary payments will be made through this account – the account also shows that funds used for property purchase have come into Greece from another country and are, therefore, not taxable in Greece.

So…before a person can actually purchase a property in Greece, they will need to open a bank account. And to open a bank account you need an AFM…

Step one is to get the AFM (pronounced Ah-Fi-M). This is the Tax Registry Number and every foreigner buying property in Greece needs it – incidentally you don’t need to be living in Greece or to have a residence permit to get it. It is free and easily available from a local tax office on presentation of your passport and birth certificate. In your absence your lawyer with a Power of Attorney can do this for you.

How much you need to open an account varies with different banks as far as I can see – I have been told from €300 to ’usually a minimum of 150 Euros’ to ‘no minimum opening deposit’ – I guess it depends on which bank you use. You must be over 18 years old and provide proof of identity, e.g. a passport, your local address and papers to show the funds you have imported and the method used.

You can open a bank account before arriving in the country via an overseas branch of any Greek bank (or a foreign bank operating in Greece), and your signature must be ratified before the account can be opened. Note that various types of bank account can be opened, including current accounts, foreign currency accounts and external accounts.

I have been told by those who have done this that it is far better to open a bank account in person than by correspondence from abroad. They also advise that before choosing a bank, you should compare the fees charged for international money transfers and other services as these can vary quite considerably I believe.

As usual, my advice would be to ask your friends or neighbours for their advice before making your choice. Again, the personal touch is always best – there is nothing quite like knowing the person behind the counter/ sitting in the manager’s office. Pop along and introduce yourself.
Cheques in Greece are not widely used – they are not generally accepted in shops and supermarkets - and unless you run a business you are unlikely to need a cheque book.

Most Greek banks provide a debit and cash withdrawal (ATM) card with current and savings accounts. Greek debit cards can also be used for purchases outside Greece. If you require a credit card, you should request one, but the bank may ask to see a recommendation from your bank in your home country before issuing one. You will require a copy of your passport, copy of your last tax return, and foreign residents may also be asked to produce a residence permit and proof of income. Credit limits usually start off low, around 300 Euros.

Greek banks don’t generally give loans (other than mortgages) to non-residents.
You will need your ID when making withdrawals in person. Watch out for ATM charges - if you withdraw from a bank other than your own, commission charges will be levied on each transaction.
Your bank account can be used to pay most household bills directly, either through the Internet or at an ATM without charges being levied. However, most bills carry a fee if you pay them at the teller's desk.

It isn’t wise to close your bank accounts abroad when you’re living permanently in Greece, unless you’re absolutely certain that you won’t need them in future. Even when you’re resident in Greece, it’s cheaper to keep some money in an account in a country that you visit regularly than to pay commission to convert foreign currency.

A banking ombudsman deals with complaints about banking services provided by banks that are members of the banking ombudsman scheme – I would check this out when you open the account. Go to:

http://www.bank-omb.gr, email mailto:contact@bank-omb.gr

How to Minimise Bank Charges

by Smart Currency’s Charles Purdy.

As we probably all know, banks are masters at making little - or indeed not so little – charges. What you think is going to be the cost is never quite so. One area where the charges can be “not so little” is for international money transfers.

A UK bank sending funds overseas will charge YOU for processing the transfer AND for covering foreign bank charges if you so select. This is probably the best option as otherwise you will leave yourself at the mercy of the overseas receiving bank, which could then make a percentage charge of the funds so transferred. A lot of banks are very “happy” to charge 0.5% to receive your money. On a transfer of €100,000 this equates to €500!

When sending funds back to the UK the foreign banks can again be masters at charging a percentage rather than a fixed charge. One person we spoke to recently had been charged €800 for the privilege of transferring funds back to the UK.

How do you avoid these charges?

Firstly, you have to be aware there ARE ways to minimise these costs.

Secondly, you have to be aware that most banks will not be very helpful when you try to do this. Take, for example, the British banks, which seem to refuse to adopt European legislation that states that transfers under €50,000 should be undertaken for the minimum cost.

Thirdly, be aware of these types of exemptions when transferring from overseas. For example, if you are bringing back €90,000 from Spain, do it in two transfers of €45,000. Seems illogical doesn’t it, but once you explain to them that you know that transfers of such amounts should incur minimal costs then they may well offer you acceptable charges for the full transfer.

And finally, you need to use a currency company that understands the system. They will have a relationship with their bank that they can leverage on your behalf to eliminate these costs by absorbing them into the exchange rates they agree with you. These rates will, needless to say, be far better rates than the banks will offer you.

To discuss how you can minimise your costs when transfering money to Greece, please call a member of the Smart team on 0808 163 0102 (freephone). Or for more information on how you can save money through being Smart about your currency exchange, please download the report provided at no cost from Smart Currency Exchange at: http://www.SmartCurrencyExchange.com/freereport.htm

Euro Currency Update (by Charles Purdy)

Sterling had a mixed week, losing ground against the Euro but gaining against other currencies such as the US$ and the high interest rate currencies such as the Australian $. The Bank of England kept UK interest rates on hold, which was expected, and we now wait for the minutes of the meeting to see what the emphasis of the meeting was and how close the vote was for keeping or reducing UK interest rates.

UK data, including house prices and trade figures, were on the weak side and, as such, were a driver in the fall of sterling against the Euro. A lot of UK economic information out this coming week will make interesting reading with regards to inflation as this will be a significant driver for UK interest rates.

The € is still top dog and sits against sterling at €1.418/£1 inter bank. The European Central bank kept € interest rates on hold. The market expects this to be the case for a while as the ECB battles inflation, which is over target, and a strong € exchange rate which dampens exports. However, the strong € has increased the downside risks to growth significantly and, as such, there will be a moment in time when the other currencies become stronger but don’t expect this any time soon. It is still a good time to bring €’s back.

To get a Better-than-Bank go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call one of the Smarties on 0808 163 0102 freephone.

A constructive tale from a Greece potential property buyer

Just to reiterate what we have said already, here is a first hand experience from Pete on buying property in Greece:

“We set a stipulation that we would not consider any property or land unless it had the topography and title for inspection. You can check the description of the property against these documents yourself. We take a tape measure with us and measure the plot and the building against these documents.

It’s surprising how many are incorrect or have illegal extensions, or even rooms designated as bedrooms which are shown as ‘storage’ on the Scenarios. Disregard any property that has any variance from the legal documents. All this can be done prior to having your solicitor or engineer do any work i.e. before you start paying! It is vital that you have a solicitor and engineer that you can trust and communicate with. Ours have saved us many thousands of euro's, and at the same time upset a number of agents / owners. These are the people you want working for you to protect your interests.

I'll give you examples two of properties we walked away from recently:

Case One: A renovated old stone property, in a conservation area and owned by a British couple, on our first two inspections appeared to be in very good order. We had asked for the drawings and building permits for the renovation works together with all tax certificates.
The agent’s husband had done the work. So were surprised when at the third request in writing nothing had been produced. We had refused to pay any deposit until such time as these documents were produced.

We later found out that the renovation had been done without a building permit or drawings, and the relevant taxes had not been paid i.e the building was illegal . We shut the book on this property without any cost other than a legal search and engineers report.

Case Two: A much more disturbing affair altogether. We had found what looked like a very nice property that had been on a number of agents’ books for about two years. We carried out our inspections and found that the land with the property measured 846m2 whereas the agents stated 500m2. The building was supposed to be 115m2 with a building allowance of up to 200m2.

Our study of the Scenarios against the building found that the original permit was only for 100m2 - the extension was illegal. We also found that the stated allowance was incorrect. The plot only had an allowance of 100m2 so the extension would have to be demolished. Furthermore, our inspection of the property found a number of serious faults mainly due to water ingress into the structural columns and beams. A second inspection by our civil engineer confirmed our concerns and he recommended the property be demolished and rebuilt if we really wanted to buy there.

This property was owned by an architect and advertised as only needing modernisation.
We summonsed the agents to a meeting for an explanation: their response was:
"Well, this is Greece" and then they added that had they been aware of the problems they would have told us.

Three months on they still have the property on their web site, with exactly the same description. We fear that someone without our knowledge will end up buying this property, and it would appear we can do nothing we can do to stop that happening.

Hope you find the above of interest. We have many more. I'm sure you will have heard them many times before.

Kindest Regards

Pete.”

Need I comment on the above? This is one really sussed buyer and, as he has proved, it is wise to be so. If you are not – employ those who are. Yes, you have to pay – but nothing like the price for a dud or illegal property. As I said to a Greece Buying Guide reader just yesterday, don’t be ‘penny wise, pound foolish’!!

Do you need help finding good agents or getting assistance from people that are as knowledgeable as Peter? Please fill out my property form at:

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

Or...perhaps you have a story you would like to share with the Greece Buying Guide readers? Please send it to me and I might publish it in my next newsletter: mailto:Carol@OverseasGuidesCompany.com

Have you read the Greece Buying Guide yet?

“Read cover to cover on flight to Greece for property viewing trip. Felt on arrival that I was armed with all the information needed to ask the right questions. Now I have bought the right property and saved money based on information provided. I wouldn’t hesitate to recommend this excellent guide.” E. Lowe

Get your Greece Buying Guide today at: http://www.GreeceBuyingGuide.com/guide.htm

Keep that hard earned money...with the help of CreditExpert

A little while back, my daughter had a suitcase stolen. It contained all her family’s passports, driver’s licences, bank account and credit account details…a nightmare scenario.

The thieves then embarked on a spending spree second to none. They opened up bank accounts in my daughter's name, wrote out cheques that they couldn’t meet …and it was sometimes much later
that she found out about this.

Well…thank heavens she has found help – and I want to share that help with you. It struck me that any late payment, fraud or clerical error could easily damage your credit status and lead to lenders refusing you credit – for instance when you apply for that all important mortgage for your new property. This could prove both embarrassing and costly.

So - she has joined up to CreditExpert . This alerts her to what is happening to all her accounts as it happens…

I went into the Internet to have a look at their website: from what I read, CreditExpert is the UK's leading online consumer credit monitoring and identity fraud prevention service. If you're thinking
about getting a mortgage you can check your credit report and make sure all information is correct before any credit searches are carried out. And what is really great is that you can take a 30 day free trial and receive the following:

• Unlimited online access to your Experian Credit Report
• The opportunity to review your credit history before
you apply for credit
• e-mail or text alerts for early identity fraud detection
• Free phone advice from credit reference specialists
• Credit tips and tools to help you manage your finances
• The option to order your National Credit Score
• Identity theft assistance and resolution

It sounds great: I went in and followed the process – it is as simple as can be. My daughter highly recommends this very useful service – have a look at:

CreditExpert

WHEN you get to the CreditExpert WEBSITE, Just click on:

It's just above ‘Join 20 million consumers.' So there you have it – give it a try.

Anything else?

Looking at the latest edition of the magazine ‘A Place in the Sun’, I see they are running an article entitled ‘Greece Lightening’: they head out for a whirlwind viewing trip on what they call ‘Crete’s gorgeous and, as yet, undiscovered south coast…’ Undiscovered, that is, to all but Greece Buying Guide readers!! I have long been singing the praise of this side of the island. Please let me know if you want to beat the rush and be put in touch with a really first class English agent here who has made it her home for years….

Contact me on mailto:Carol@OverseasGuidesCompany.com

That’s all for you this month!! Please let me know if I can be of assistance to you at all. If you are interested in getting in contact with any of the wonderful people that I have sourced for you around Greece to make your search easier, just click on:

http://www.greecebuyingguide.com/resources.htm

fill in the form and I will respond with the name of someone who will contact you. We at the Overseas Guides Company take pride in the fact that the people we refer you to will look after you and help you make these all important choices.

If you want to buy a property just email me on:
mailto:Carol@OverseasGuidesCompany.com

or phone me on: 020 7898 0549 and let’s have a chat about it.

Take care and all best wishes until next time,

Carol (aka Karolina!!) and Kim.
Greece Buying Guide/ The Overseas Guides Company