Well hello there. Here we are in September…and what did I get up to this month?  Actually, I saw two plays that I have been meaning to see for some while. 

Firstly I saw the adorable Ethan Hawke in Chekhov’s The Cherry Orchard with my son John.  I love him – Ethan I mean (well, both of them actually!) - I have done since I first saw him in the movie White Fang, years ago now.  I didn’t think he was great in the play and but it was a real thrill to see him – needless to say, I did the autograph thing at the stage door…much to John’s embarrassment! 

Looking at the reviews later, I came across an incredibly amusing website that I just have to share with you  - have a look. They have reviewed both plays I saw.  

http://westendwhingers.wordpress.com/about/

Then I saw The War Horse – and if you have any intention at all of seeing this at all, DON’T go to the website above…or maybe you should!  They excoriate it, but I must say that I rather enjoyed it.  Perhaps I was a little biased – the magnificent horse puppets were without doubt the stars of the show and were made by the simply wonderful Handspring Puppet Company of South Africa see http://www.handspringpuppet.co.za

Yes, I did watch the first X Factor last month and yes, I adore Danyl Johnson, the 27-year-old schoolteacher from Reading.  I thought he was utterly charming – oozing the likeability factor as well as making an old classic sound utterly new and exciting! He has my vote…your opinion? And don’t pretend you didn’t watch… - you know that you secretly admire the irascible Simon Cowell!

Right – ever onwards.

I LOVE Greece at this time of year.  It is still warm – even hot sometimes – cooled by light breezes blowing in from the sea. Tourist orientated celebrations wrap up about mid-month and, although almost all amenities such as ferries are open until at least then, it is far less crowded. Prices drop too, sometimes quite dramatically.
 
Did you go over to Greece this summer?  I was not able to, but I fully intend to rectify this earlyish next year. My friend and I have been promising ourselves that THIS will be the year that we return to Corfu, to commemorate more years of friendship that I care to tell you and to retrace our 1968 hitch hiking trip!  Any suggestions?  I’m thinking Corfu, and then a bit of darting about on the mainland, maybe adding Meteora and Monemvasia to the itinerary.  And I really want to visit Evia this time too - there is a lovely sounding hotel there that I really want to look up…and report back to you on. 

This month I have an insert on the cost of living in Greece – you may like to comment on this?  A few words on financial planning then there is a bit about currency, a property that I hope will float your boat and a few thoughts on how to fund your new property purchase. I round up with a ‘What’s on in Greece in October’ section, before closing with a testimonial about our Property Buying Guide.

Read on – and you may need a warming sip of Ouzo to spur you on – do you like it?  I know it’s an acquired taste but I adore it.

Kind regards,

Carol

Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited.
mailto:carol@OverseasGuidesCompany.com
Phone 0207 898 0549
1, Lyric Square,
LondonW6 0NB

A question I am often asked is how much it costs to live in Greece.  Well, as you can imagine, this is a really tricky one to answer! Are you a bread and butter type person or do you lean more towards champagne and caviar? If you want the air conditioning on all summer it will cost you more than if you simply adore the heat…you can see the problem! Bearing this in mind, here is an outline of prices that I saw on the Internet:  see what you think.   And perhaps those among us who are lucky enough to live in Greece or visit frequently might like to jump in here with a few figures of their own?

Unless you have bought your property fully furnished or you plan on taking your own home contents with you, you will want to start looking for essential furniture and white goods. There are many options with local stores but a lot of expats and second home owners like to go to good old familiar Ikea and buy everything there, then have it delivered. There are three Ikea Stores in Greece:  one at the Athens Airport, one in Kifisou in Athens and one in Thessalonika.

As a starting point, you'll certainly need the basic items. Obviously, prices will depend upon the quality of the items you buy but these are average prices in euros.

Electric cooker - 500
Fridge freezer - 500
Double bed - 400
Dining table and four chairs - 500
Sofa and two armchairs - 1200
Plastic outdoor table and four chairs - 150

On the home front, the highest bills generally are the electricity bills, so you’ll need to watch that air conditioner in the summer and heating in the winter. Regarding the property itself, rates (council tax) in Greece are not charged if the property is less than 150 sq.m. Water is precious on the islands and is charged on a usage basis, so be careful not to be wasteful and keep an eye on how much you are using. Rubbish collection and street lighting are included in the electricity bill.

It is better and easier to buy a new car in Greece rather than taking your old one with you, for various reasons. You won't need anything flash or new - go for a cheap second hand runabout, small and economical.  Or I guess you could use the local transport if you are near a bus route, and just hire a car for special occasions? You may also need to cost in a gardener if you are using the house on a holiday basis…

Costs below are in euro and on an annual basis, based on two people and exclude any mortgage costs.

Home:
Water - 220
Electric - 600
Heating - 600
Insurance - 470
Food at home - 9,000
Sub total - 10,890

Car:
Insurance - 460
Petrol - 540
Sub total - 1,000

Living:
Trip home - 900
Dining out (twice a week) - 2,500
Internet - 300
Emergency fund - 2,400
Sub total - 6,100

Grand Total :17,990 euros


Not bad is it?  But of course this is a very rough guide and may differ dramatically if you have any special needs/tastes.

Many of the professional property people that I recommend to Greece Property Buying Guide readers are English expats who have lived in the country for years.  They will of course know all about property but I have found them to be endlessly helpful with information of the sort discussed above.  If you are going out to Greece any time soon and want to be put in touch with them please don’t hesitate to call me on 0207 898 0549 or fill in the brief form at:
http://www.GreeceBuyingGuide.com/property.htm
and I will get them to contact you. 

by Smart Currency’s Charles Purdy.

So what is the problem with sterling? Since the start of August we have had significant sterling depreciation against most currencies. Clearly we have had major problems following the collapse of Northern Rock, the Royal Bank of Scotland and HBOS [Halifax Bank of Scotland]. But so have the US and the Eurozone had problems with their financial system and, like us, continue to do so.

Therefore why is sterling the pariah? The problems for sterling are numerous. The UK economy was very dependent on the finance sector which suffered most in the credit crunch. We also suffer from a balance of payments deficit which means that flows of funds out of the country exceeds inward flows - never good long term. The US$ and the € have the benefit of  the former being viewed as the world’s reserve currency and a safe haven asset.  The latter is a very major world currency used as a common currency by a large number of countries, one of which is the world’s greatest exporter, namely Germany. We also have a Central Bank who seems to lack the fire power or the efficiency of the European Central Bank who seem to be able to make large funds available to its banks at a moments notice.

But the major problem is the Government’s budget deficit - which existed prior to the credit crunch - and it’s huge explosion resulting in record Government borrowing.  Also there is no political will or cogent plan to cut it prior to the next general election. Until we see this plan and people believe in it sterling will have no “fans” internationally. And until we see investors start to view sterling positively again it is very unlikely we will see a significant appreciation in sterling, certainly not against the euro.

In fact some commentators see us returning to parity with the £1=€1 by the end of the year. If this does happen, your €’s would cost you 10% more than they would at the moment. Do you want this to happen?

If not, you need to contact Smart Currency immediately – call on 0207 898 0549 or freephone 08081 630 102 and have a chat about ways you can avoid this. 

To read the latest on Sterling and the Euro go to: http://www.GreeceBuyingGuide.com/Currency240909.htm

View up-to-date currency reports Rate movement alerts and much more... Go to: http://twitter.com/SmartCurrency

Why overseas property buyers lose money...
...and how you can avoid it!

This 10-page educational report outlines:

• Case Study: When Property Buyer, Mr Reed, Purchased an Overseas Property, he Made Three Mistakes that Cost Him £10,256...learn how you can avoid them...
  
  
• How the Banks make HUGE profits from their long-standing unsuspecting customers
  
  
• Ways to safeguard yourself against adverse fluctuations in exchange rates (or in other words, helping you to keep your money in your pocket)
  
  
• The entire process of moving money from the UK to any overseas location, so that you're armed with all the knowledge you need to make intelligent decisions about your money
  
  
• How you can ultimately save £100’s and £1000’s so that you have ample money to buy furniture and white goods…
  
  
• More case studies of people that lost money due to foreign currency strengthening against the pound, so that you learn from other peoples mistakes rather than your own!
  

And just a couple remarks about the report from our readers...

" We have found your free report to be extremely helpful... Wendy Watson"

"I have read and absorbed the information in the stories outlining the mistakes which the uninitiated can make when transferring currency. It is very illuminating and essential that anyone like myself, who is in the process of buying an overseas property, should be aware of. I would go so far as to say that every agent selling overseas properties should be compelled to advise their prospective purchasers that it is paramount that they use a currency expert such as yourselves. Regards, Eric Thomas"

To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm

To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

An Affordable Country Villa at Pylona, close to Lindos

Bedrooms: 2
Bathrooms: 2
Property size: 102 sq.m.
Land size: 268 sq.m.

Here is a lovely home on the highly desirable island of Rhodes. Set amidst orange and lemon groves and surrounded by a crest of mountains, this fully detached 102 sqm home is part of a brand new small development. It is ideally located a short stroll away from the tranquil village of Pylona with its cafes, bars, shops and a variety of other services. It is also just a five minute drive from the prestigious village of Lindos and 4 kilometers from the sandy beach of Vliha.

The villa consists of an open-plan ground floor with a fully-fitted kitchen and a shower room, and a first floor with two bedrooms with fitted wardrobes and a bathroom.

The 268 sqm grounds will include parking space for one car. There is also an optional extra of a 6 x 3m swimming pool at an additional cost of €20.000.

This property offers tremendous value for money and is an excellent investment opportunity. With completion just 12 months from contract, this house could be yours with just a €5.000 deposit as a 100% mortgage is available and there are NO CLOSING COSTS.

If you would like to have a chat about this or any other property please phone me on 0207 898 0549 or go to the link below and fill in the brief form.

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

Non-resident status continued!

I had input from one of our newsletter readers about the non-resident article that was in last month’s newsletter.  He points out that the Sunday Times article was not referring to people emigrating. I am popping in his reply for you:

It was specifically with respect to "Wealthy people planning to move abroad for part of the year to beat the 50% top rate of tax"

To put émigrés minds at rest, put simply if you move to a country that is not deemed a "Tax Haven" such as some Caribbean islands, then you are taxed on all your worldly income by that country and not by the UK. If you spend 183 days or more resident in that country in that country's tax year, then you will be taxed there and not here. If you have dividend income from UK companies then UK tax (currently at 10%) will be deducted at source but allowed against you tax in your country of residence (assuming a double taxation agreement exists). There might be slight anomalies during the first year because the UK tax year runs to 5th April each year, whereas most other countries run to the 31st December, however the double taxation agreement should cover that.

The possible difficulties arise if you do not spend 183 days or more per year in a single foreign country, For then the question will arise as to which country should tax you since you are no longer resident in a single country for the majority of the tax year. Some countries will claim the right to tax you if your main home is in their country. The UK has the notion of "Ordinary Residence", a term not defined in statute, but for at least 40 years to my knowledge the test has basically been if you spend 90 days or more per tax year in the UK or maintain a property you can use in the UK.

There should be no problems for a genuine émigré, nor for those permanently living abroad if their countries have a double taxation agreement with the UK. However the efforts of all tax administrations to catch those who wish to avoid all tax is likely to mean that you have to establish residence in a country with a double taxation agreement with the UK if you wish to avoid all avoidable UK taxes. If you have no assets in the UK the UK authorities are unlikely to pursue unless you spend more than 183 days in the UK in a UK tax year. As an example if you have substantial UK pension income and you move to a tax haven (e.g.. Turks and Cacaos Islands) your pension will continue to be taxed at source in the UK. If you move to a county with a double taxation agreement with the UK the UK authorities will allow the pension to be paid gross and your country of residence levy the appropriate tax.

Probably the biggest loophole plugged in recent years concerned capital gains tax. The UK can only tax you if you are resident in the UK for 183 days or more in the tax year, so people wishing to for instance sell assets (typical real estate or shares on which the was a substantial capital gain would move abroad for a year and sell the asset once abroad thereby avoiding what was then 40% capital gains tax. They would then move back to the UK the following year. The law has now changed in that HMRC can now charge you capital gains tax in respect of earlier years when you were not resident (i.e 183 days) in the UK if you were "ordinarily resident" which whilst not precisely defined it is generally accepted that you are not "ordinarily resident" if you did not have a property in the UK which you could stay in and did not visit the UK for more than 90 days a year in all of the last 4 years, but the matter could be muddied if you are not tax resident in any other jurisdiction.

I am sure that this is massively helpful and I am always grateful for any input that you may wish to share with other readers.

Please do contact me if I can put you in touch with an IFA (Independent Financial Advisor) – it’s always a good idea to know exactly what you can expect in your new country. Just phone me on 0207 898 0549 or fill in the short form at:
http://www.GreeceBuyingGuide.com/resources.htm

What’s on in Greece in October?

I promised to let you know what’s happening in Greece – I will tell you about the following month so that you have time to plan your trip!

Most importantly, the national holiday of Ochi Day is celebrated throughout Greece on October 28th, commemorating Mextaxa's brave refusal to allow Axis troops to cross into Greece during World War II – his response was a curt "Ochi!" or "No!"  There are parades on most islands and all major cities.  Many Greek Orthodox churches will be holding special services in the towns and cities to celebrate this event, while coastal towns may have naval parades or other celebrations on the waterfront.

Then at Gythio (http://www.gythio.net/en/en_index.htm) on the southern Peloponnese, the local fishermen celebrate the catch of maridaki, a small fish. The festival is open to all and includes free food and wine. This one is a bit off the beaten path, but for me this is really the kind of festival I like to attend as it's a delightful way to experience an authentic event designed for the locals.  As you may have personally experienced, you will be welcomed with open arms. However, this year, try to check locally as the fires in the Peloponnese may have changed the festival schedule.

In Crete the annual Chestnut Festival in Elos in the Ennio Khoriadistrict near Kissamos falls around October 15th - confirm this date locally before you go. If you're a chestnut fan you won't want to miss this one! Another Chestnut Festival takes place about October 26-28th on the slopes of Mount Pelion, with one taking place from October 26th-28th at Marousi on the Pelion. Seeing great, plump chestnuts hanging from the trees in Bishop’s Park, here in Fulham, I can imagine why the Greeks would wish to celebrate them!

Finally, Dimitrios is the patron saint of Thessaloniki, and the city offers three days of celebratory events, culminating with the Ochi Day parade on the 28th.

I would love to know any festivals or events you have attended – the Easter celebrations I was welcomed to on the island of Sifnos have remained in my memory to this day, many years later.

Professional Companies to help you

I am always on the lookout to find professional people for you – people who will not only do the job, but do it in an ethical, friendly and professional manner. Here are two companies that have proved really popular with guide readers. 

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 really does what you want them to, 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 17 people clicked on our insurance link and purchased insurance through Intasure – not a bad recommendation in one month alone!

Intasure

Holiday lettings
holidaylettings.co.uk is the perfect site, both to find a place to stay locally while you look for your new home abroad and to advertise your property if you decide to rent it out. 

If you are renting out, a great facility is that you can check on how your advert is performing by clicking on the view enquiries section of your home management page. From here you can see the number of hits (visits to your page) you have had over the past 30 days and the number of enquiries you have had over the course of a year. It really is a well thought out and intensely helpful website that should maximise the number of people looking to rent your property.

One of my associates has managed to get very special deals for Guide Readers who are new advertisers on the holidaylettings.co.uk website.  If you enter 45749 as the promotional code, you can get 15 months of advertising (of your property) for the price of 12 months.  Or just click on the link and the code will appear automatically.

Holiday Lettings

Financial planning

Financial Planning Week, which took place from 7th to the 13th September, was an information campaign run by the Institute of Financial Planning (IFP).  The main aim of the campaign was to assist the ordinary ‘man in the street’ - the likes of you and me - to deal with the day to day financial concerns that we all experience.

What they particularly want to do is to suggest easy steps that we all can take to make our money really work for us. 

I clicked on their 10 simple tips – have a look at the link below and yes, they are simple - but they are still utterly essential in order to look after your assets.

http://www.financialplanningweek.org.uk/

In brief, they are:

1. Identify your goals
2. Know what you are worth
3. Budgeting
4. Debts
5. Stash some cash
6. Save!
7. Get yourself protected
8. Retirement plans
9. Investing – not just for the rich
10. Spread the word

These are all logical steps but often we just don’t concentrate on actually getting the answers to these all important questions, nor do we take steps to ensure our financial independence in time.  ‘Tomorrow is another day’ often seems to be the feeling, and yet these are matters that should be addressed as early as possible in order to give yourself time to plan and also for investments to mature. 

Here at the Overseas Guides Company we have a guide to moving pension overseas and I have also sourced a financial specialist who is dedicated to assisting our readers with all aspects of financial planning. I would be very happy to put you in touch with a professional company that other guide readers have used and highly recommended.  Please complete in the brief form below and I will call to discuss this further.

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

Testimonial and Guide

One of the very nicest things about my job is that we at the Guides Company are constantly getting the most wonderful emails from our readers, thanking us for the Guides and the newsletters.  Here is a case in point, sent to Kim last month:

From: Pamela McVey To: Kim Brown

Hi Kim.  Thank you so much for all your emails with information which is truly helpful. I was prepared to do my homework before I even thought of moving to any place especially abroad.  Between language barriers and different laws I had that on the top of my list of things to find out, but you have opened my mind to things I had not even touched on.

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 all their dreams that they have put in motion just to be destroyed. It was heartbreaking to hear of your in-law’s story. It's not just the losing of money and homes, but it's the mental effects that must destroy others who fall to the prey to these terrible agents so this will have a life time effect I’m sure.

Thanks to you, people can maybe build their faith and trust in the system.  You’re doing a wonderful job and, if and when I decide to take the biggest step of my life, I certainly will contact you for any information and guidance. I'M VERY GRATEFUL FOR ALL YOU DO!

From Pam x

How wonderful is that?  I am here to assist you with any queries you may have about Greece so please don’t hesitate to call on 0207 898 0549 – I’d love to hear from you. And, to really be fully prepared, you may want to get our helpful Greece Property Buying Guide – if so, please go to the link below and we will immediately send you a copy.

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

Goodbye for now...

That’s it for now.  Have a happy month ahead and PLEASE let me know what you would like to see in these newsletters – they are for you and I really want to think that I am helping with your plans.  You can phone any time for a chat – 0207 898 0549.  Sometimes I find that just by talking I somehow crystallise my thoughts…

See you next month!

Best regards,

Karolina!

Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited.
mailto:carol@OverseasGuidesCompany.com
Phone 0207 898 0549
1, Lyric Square,
LondonW6 0NB