Hello there. How are things going with you? Still planning on buying abroad?
Chatting to people about buying property abroad, I find that one of the main concerns is how to chose a good and trustworthy developer if you are buying off-plan.
This problem has been made worse by the current economic climate – many developers are going under, and sometimes taking unwary buyers and their dreams with them. It is therefore absolutely crucial that you have a really god look at the credentials of your developer before signing on the dotted line..
An email that I received recently bears this out. It tells of the endless problems encountered by one of the OGC readers who had failed to do his homework – and he really paid a heavy price, both in financial terms and in the stress that such things bring with them.
The property he bought was about one third completed at the time he paid his deposit to the developer. All went well until the house was ready for the final finish and, at this point, the developer sacked the builders and employed his own low paid and unskilled labour. The result was that the finish was very poor and, although the complex was completed, only 7 or 8 properties have been sold to date.
Financial penalties for late completion were not paid although there was a six month delay. The unhappy owner only discovered when it came time to address this problem that his solicitor also represents the developer!
All this could so easily have been avoided. I am going to outline a few essential and non-negotiable points for you to think about:
- If possible, move into rented accommodation nearby BEFORE you plan to buy and chat to locals about the developer/s you are thinking of buying through
- Search the Internet for expat forums on your town or city of choice. Some highlight poor practices and name and shame shoddy developers
- Google in the name of the developer you are thinking of using and see what comes up
- Get a developer that is a member of a regulatory body if at all possible
- Consider using a reputable estate agent instead of going to the developer direct – to protect themselves they will have done the checks
- Insist on visiting a couple of the developers’ previous projects and on talking to previous buyers
- Retain a solicitor independent of the developer so that there can be no conflict of interest
- Make sure your solicitor draws up a contract that protects YOU
- Make absolutely sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of build stages and not simply by date
- Buy a bond or take out insurance to protect yourself if the developer goes bust or there are any major issues with the build
- Take your time and refused to be rushed
If you follow the above to the letter the chances of anything going wrong will be dramatically reduced.
Chatting to someone in the property business abroad, she told me that she was stunned by how many people simply abandoned all the normal checks and balances that they would apply if they were buying property in the UK – don’t be one of them!
Speak to you soon – and I’d love to hear from you.
Take care until next Friday – warm wishes,
Carol and Kim
http://www.greecebuyingguide.com/
Friday 28 May 2010
Friday 21 May 2010
Owner of all you survey…!
Hello there – how are you? Peering out of my window it is gloomy and overcast: I cannot get over how quickly the weather changes here. One moment it’s blue, clear skies and the next – rain! Oh well… I guess that’s why people buy homes abroad!
I have been working for the Overseas Guides Company for a number of years now – I must have spoken to hundreds of people buying property abroad; most of them have gone on to find the home of their dreams and have absolutely no regrets. However, I do sometimes hear of disasters and, on analysing the problem, it all comes down to one thing: they have not checked the property and its surroundings adequately before signing on the dotted line.
Two cases spring to mind here. I received an email a while back from a couple who had purchased a farm from an estate agent and were told that it was just over 2 hectares in size.
All the official paperwork confirmed this. To their enormous surprise, when measuring the land some while later, they found it was only 1 hectare. The estate agents deny liability, saying that the official papers confirm that the land is 2 hectares and that they go by the official figures. Needless to say, their query to me was how they should set about recovering half their money.
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, or an architect licensed 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 and demand a full report on all findings. 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…and 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 - once all the contracts are signed you pretty much accept the property as is – ‘Voetstoets’ is the term used 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?
The second disaster I was made aware of was an apartment with spectacular sea views, bought by an older couple as a holiday bolthole for their grandchildren. Trouble was, when they arrived at their holiday apartment after an absence of a few months, an enormous block of flats had been erected, totally blocking their magnificent view of the sea.
Strangely enough, some months before I had planned a trip to Crete, in Greece, and one of the OGC readers had asked me to have a peep at a sea facing apartment he was thinking of buying. I asked the agent I happened to be travelling around the island with, and his immediate reply was that his company were building a huge block in front of it…Needless to say – one lucky escape!
Make sure you are not caught out in this way - a professional survey may cost a bit but it really is money well spent.
Let me know how your plans are coming along. Have you heard any stories where a survey saved the day – or perhaps the reverse, where disaster struck because no survey was completed?
Take care and see you next week. Best regards, Carol (and Kim)
http://www.greecebuyingguide.com
I have been working for the Overseas Guides Company for a number of years now – I must have spoken to hundreds of people buying property abroad; most of them have gone on to find the home of their dreams and have absolutely no regrets. However, I do sometimes hear of disasters and, on analysing the problem, it all comes down to one thing: they have not checked the property and its surroundings adequately before signing on the dotted line.
Two cases spring to mind here. I received an email a while back from a couple who had purchased a farm from an estate agent and were told that it was just over 2 hectares in size.
All the official paperwork confirmed this. To their enormous surprise, when measuring the land some while later, they found it was only 1 hectare. The estate agents deny liability, saying that the official papers confirm that the land is 2 hectares and that they go by the official figures. Needless to say, their query to me was how they should set about recovering half their money.
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, or an architect licensed 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 and demand a full report on all findings. 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…and 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 - once all the contracts are signed you pretty much accept the property as is – ‘Voetstoets’ is the term used 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?
The second disaster I was made aware of was an apartment with spectacular sea views, bought by an older couple as a holiday bolthole for their grandchildren. Trouble was, when they arrived at their holiday apartment after an absence of a few months, an enormous block of flats had been erected, totally blocking their magnificent view of the sea.
Strangely enough, some months before I had planned a trip to Crete, in Greece, and one of the OGC readers had asked me to have a peep at a sea facing apartment he was thinking of buying. I asked the agent I happened to be travelling around the island with, and his immediate reply was that his company were building a huge block in front of it…Needless to say – one lucky escape!
Make sure you are not caught out in this way - a professional survey may cost a bit but it really is money well spent.
Let me know how your plans are coming along. Have you heard any stories where a survey saved the day – or perhaps the reverse, where disaster struck because no survey was completed?
Take care and see you next week. Best regards, Carol (and Kim)
http://www.greecebuyingguide.com
Friday 14 May 2010
Information I hope you won’t need!
Looking out of my window today, it is a lovely sunny day. Can it be that summer is finally on its way?
And with the arrival of summer comes crunch time for the Greek economy. The decision to cede national sovereignty on economic and social policy in return for a 110 billion euro EU-IMF bailout was sealed with a parliamentary vote on May 6. The Pasok government was joined by opposition members in passing the package and Prime Minister Papandreou declared that his government will do everything possible to implement the agreed programme fully. Hopefully this will set the Greek economy on the path to recovery.
Are you going to Greece this summer? I am hoping to, and chatting to people who are planning to either visit or relocate to Greece I am frequently asked about the medical system there and how Greece compares to the NHS.
Comparisons, they say, are odious, but what I do recommend is that you look very carefully into the level of medical care if you are considering buying a property in Greece. Medical standards have improved considerably in recent years, but they may not be up to the standard we take for granted in the UK. Nursing care and post-hospital assistance are below what you may be used to, especially on the smaller islands and in rural areas, and people have told me that they have sometimes needed to trek all the way to Athens or Thessaloniki for expert hospital treatment.
Don’t fall hopelessly in love with a property BEFORE you have made sure that there are certain necessary medical requirements that the area can provide you with. If you have small children it’s also rather comforting to have medical help relatively close by, even if there just on holiday regularly. It is also very difficult to form a trusting relationship with your doctor if they don’t speak a word of English. Find out if there are expats living nearby and perhaps have a chat to them and find out what they think of the local medical facilities – or maybe your estate agent can help here?
Greece has a national health care system that provides free or low cost health care to residents and, as a EU member country resident, you will be treated on the same basis as a resident of Greece. Non-EU citizens should arrange private health insurance before they leave their home country; however, emergency care is provided free of charge in public hospitals to anyone, regardless of nationality.
You should obtain a European Health Insurance Card (EHIC) before leaving the UK – you have to present this to get free treatment. If you choose to approach Greek practitioners/hospitals direct for private treatment, the EU Community arrangements will not apply and you will be responsible for the full cost of any treatment received.
The EHIC is available free of charge through most UK post offices or through the UK Department of Health via their website at: www.dh.gov.uk
You can contact them on 0800 555 7777.
In urgent situations, but not an emergency case, the patient may see a private specialist and will be reimbursed up to a maximum of 85% of the fee later by Idrima Kinonikon Asfalisseon (IKA). IKA is the government body that operating Greece’s National Health Care System. Waiting lists are long for non-urgent operations.
Essential dental treatment is largely free; eye treatment is also free but non-essential medicines and health-related accessories such as dentures, dental crowns and spectacles are substantially charged. Members are charged 25 per cent of the actual cost of prescriptions (pensioners pay ten per cent).
Phone 184 when the IKA facility is required, and make an appointment to see a doctor or a specialist at an IKA Centre.
If you cannot get to an IKA office before going to a hospital or first aid station, you should ask the authorities at the hospital or station for free treatment under the IKA scheme. The EHIC must be shown, so do keep this on you at all times.
In Greece you may have to make a patient contribution to the cost of your care, as do the Greeks themselves. You may be able to seek reimbursement for this cost when you are back in the UK if you are there as a visitor. It is important that you ensure that you are treated by a state healthcare provider as you will not be covered for private healthcare. You should be particularly careful if the healthcare arrangements have been made by a hotel or travel representative as they may refer you to a non-heath care doctor.
If you are going to be working permanently in Greece or are going there to retire you need to get hold of a medical booklet (or ‘iatrico vivliario’) from your local IKA office. This must be shown each time you visit a doctor or hospital. Pensioners who intend to take up residence in Greece and who are entitled to free medical treatment in the United Kingdom also enjoy this facility in Greece. They should produce their form E121, issued by their local Department of Health Office in the United Kingdom before moving to Greece, at their local IKA office.
Most foreign residents also subscribe to a complementary health insurance fund that pays the portion of medical bills not covered by social security.
If you live in a remote area of Greece that isn’t covered by a local IKA office, you’ll have to pay the cost of any medical treatment in advance and re-claim it from the nearest IKA office. However, the refund will be only a proportion of the cost (up to around 85 per cent) and you will be responsible for the balance. If you receive treatment under these circumstances, it’s necessary to obtain receipts and documentation in order to make a claim.
I hope this helps – and that you won’t need to use the information! See you soon – have a great week.
Carol
http://www.greecebuyingguide.com
And with the arrival of summer comes crunch time for the Greek economy. The decision to cede national sovereignty on economic and social policy in return for a 110 billion euro EU-IMF bailout was sealed with a parliamentary vote on May 6. The Pasok government was joined by opposition members in passing the package and Prime Minister Papandreou declared that his government will do everything possible to implement the agreed programme fully. Hopefully this will set the Greek economy on the path to recovery.
Are you going to Greece this summer? I am hoping to, and chatting to people who are planning to either visit or relocate to Greece I am frequently asked about the medical system there and how Greece compares to the NHS.
Comparisons, they say, are odious, but what I do recommend is that you look very carefully into the level of medical care if you are considering buying a property in Greece. Medical standards have improved considerably in recent years, but they may not be up to the standard we take for granted in the UK. Nursing care and post-hospital assistance are below what you may be used to, especially on the smaller islands and in rural areas, and people have told me that they have sometimes needed to trek all the way to Athens or Thessaloniki for expert hospital treatment.
Don’t fall hopelessly in love with a property BEFORE you have made sure that there are certain necessary medical requirements that the area can provide you with. If you have small children it’s also rather comforting to have medical help relatively close by, even if there just on holiday regularly. It is also very difficult to form a trusting relationship with your doctor if they don’t speak a word of English. Find out if there are expats living nearby and perhaps have a chat to them and find out what they think of the local medical facilities – or maybe your estate agent can help here?
Greece has a national health care system that provides free or low cost health care to residents and, as a EU member country resident, you will be treated on the same basis as a resident of Greece. Non-EU citizens should arrange private health insurance before they leave their home country; however, emergency care is provided free of charge in public hospitals to anyone, regardless of nationality.
You should obtain a European Health Insurance Card (EHIC) before leaving the UK – you have to present this to get free treatment. If you choose to approach Greek practitioners/hospitals direct for private treatment, the EU Community arrangements will not apply and you will be responsible for the full cost of any treatment received.
The EHIC is available free of charge through most UK post offices or through the UK Department of Health via their website at: www.dh.gov.uk
You can contact them on 0800 555 7777.
In urgent situations, but not an emergency case, the patient may see a private specialist and will be reimbursed up to a maximum of 85% of the fee later by Idrima Kinonikon Asfalisseon (IKA). IKA is the government body that operating Greece’s National Health Care System. Waiting lists are long for non-urgent operations.
Essential dental treatment is largely free; eye treatment is also free but non-essential medicines and health-related accessories such as dentures, dental crowns and spectacles are substantially charged. Members are charged 25 per cent of the actual cost of prescriptions (pensioners pay ten per cent).
Phone 184 when the IKA facility is required, and make an appointment to see a doctor or a specialist at an IKA Centre.
If you cannot get to an IKA office before going to a hospital or first aid station, you should ask the authorities at the hospital or station for free treatment under the IKA scheme. The EHIC must be shown, so do keep this on you at all times.
In Greece you may have to make a patient contribution to the cost of your care, as do the Greeks themselves. You may be able to seek reimbursement for this cost when you are back in the UK if you are there as a visitor. It is important that you ensure that you are treated by a state healthcare provider as you will not be covered for private healthcare. You should be particularly careful if the healthcare arrangements have been made by a hotel or travel representative as they may refer you to a non-heath care doctor.
If you are going to be working permanently in Greece or are going there to retire you need to get hold of a medical booklet (or ‘iatrico vivliario’) from your local IKA office. This must be shown each time you visit a doctor or hospital. Pensioners who intend to take up residence in Greece and who are entitled to free medical treatment in the United Kingdom also enjoy this facility in Greece. They should produce their form E121, issued by their local Department of Health Office in the United Kingdom before moving to Greece, at their local IKA office.
Most foreign residents also subscribe to a complementary health insurance fund that pays the portion of medical bills not covered by social security.
If you live in a remote area of Greece that isn’t covered by a local IKA office, you’ll have to pay the cost of any medical treatment in advance and re-claim it from the nearest IKA office. However, the refund will be only a proportion of the cost (up to around 85 per cent) and you will be responsible for the balance. If you receive treatment under these circumstances, it’s necessary to obtain receipts and documentation in order to make a claim.
I hope this helps – and that you won’t need to use the information! See you soon – have a great week.
Carol
http://www.greecebuyingguide.com
Friday 7 May 2010
A ray of light in the gloom...
The news from Greece is not good this week, to say the very least. An estimated 100,000 people took part in the march in central Athens to protest austerity measures being pushed through by the government and sadly three people died in the ensuing mayhem.
The measures were instituted at the insistence of the EU and the IMF (International Monetary Fund). Greece's inability to keep borrowing at exorbitant rates, coupled with the delay in decisive action to remedy the situation, led to the rapid collapse of the Greek bond market. This in turn affected Portugal and Spain, driving the euro lower against the dollar and sterling and prompting losses on all Western European stock markets and Wall Street.
There is a great deal of bitterness in Greece as people feel that the man in the street will have to pay for years of corruption and prevarication by greedy and/or incompetent politicians. Prime Minister George Papandreou talks of the need for ‘decisive’ action as Greece earns an 11th-hour respite with EU-IMF aid package set at 120 billion euros over three ‘harsh’ years - but will he have the guts to push unpopular legislation through? Will the opposition put petty politics aside and put the country first? It remains to be seen…
What we sometimes lose sight of is how the economy is tied up with politics. As an example, close to 1,000 tourists on a cruise ship were stopped from disembarking in Piraeus by Greek unionists, protesting planned legislation that will allow cruise ships with foreign crews to dock in Greek ports. This prompted the cruise company to warn that it may suspend visits to Piraeus.
You don’t have to be Einstein to work out that, if this occurs, at least 1,000 tourists per week will no longer visit Athens as part of their Mediterranean cruise, and that’s just one cruise liner. It means that the alighting passengers will not eat at restaurants, visit museums or buy souvenirs – and bear in mind that tourism forms the backbone of Greece’s economy.
It does seem that there is a singular lack of forethought as to how strike action and protest marches will effect the economy – mind you, I suppose the same could be said about the BA strikes at a time when BA is struggling to keep afloat. Add to this the natural disaster of volcanic ash making tourists wary of travelling to Europe and it really does seem a recipe for financial disaster when Greece relies so heavily on turism.
All this would seem to be unremittingly gloomy, but interestingly enough, if you are in the process of buying property abroad right now it may not be.
On Wednesday sterling hit €1.16/£1 against the euro. If there is one single thing that you can do right now to protect yourself, it is to sign up with a reputable currency company like Smart Currency and consider ‘forward buying’ your currency. As Smart mentioned in an email sent out to all clients, and I quote: ” Even though the European Central Bank and the IMF say they have agreed a debt rescue package for the Greeks the markets remain unconvinced. And problems are spreading to other European countries such as Spain and Portugal, whose debts are much greater than the Greeks.”
You can buy currency at today’s rate for up to a year in the future. This means effectively that you will know in advance exactly how much your currency transfers will cost you. You will not have to be in the hands of whatever financial disaster may arise, and that includes any problems that may hit the UK. Frankly, the wisest course of action would be to pick up the phone and have a chat to a currency expert about this. Right now! Go to www.smartcurrencyexchange.com
Let me know how your plans to visit or buy in Greece are going. I am planning a visit in August and I can’t wait! Any ideas out there – what’s your favourite place? I’m toying with the idea of Hydra, Evia or perhaps Corfu…?
Take care…bye for now!
Carol.
www.greecebuyingguide.com
The measures were instituted at the insistence of the EU and the IMF (International Monetary Fund). Greece's inability to keep borrowing at exorbitant rates, coupled with the delay in decisive action to remedy the situation, led to the rapid collapse of the Greek bond market. This in turn affected Portugal and Spain, driving the euro lower against the dollar and sterling and prompting losses on all Western European stock markets and Wall Street.
There is a great deal of bitterness in Greece as people feel that the man in the street will have to pay for years of corruption and prevarication by greedy and/or incompetent politicians. Prime Minister George Papandreou talks of the need for ‘decisive’ action as Greece earns an 11th-hour respite with EU-IMF aid package set at 120 billion euros over three ‘harsh’ years - but will he have the guts to push unpopular legislation through? Will the opposition put petty politics aside and put the country first? It remains to be seen…
What we sometimes lose sight of is how the economy is tied up with politics. As an example, close to 1,000 tourists on a cruise ship were stopped from disembarking in Piraeus by Greek unionists, protesting planned legislation that will allow cruise ships with foreign crews to dock in Greek ports. This prompted the cruise company to warn that it may suspend visits to Piraeus.
You don’t have to be Einstein to work out that, if this occurs, at least 1,000 tourists per week will no longer visit Athens as part of their Mediterranean cruise, and that’s just one cruise liner. It means that the alighting passengers will not eat at restaurants, visit museums or buy souvenirs – and bear in mind that tourism forms the backbone of Greece’s economy.
It does seem that there is a singular lack of forethought as to how strike action and protest marches will effect the economy – mind you, I suppose the same could be said about the BA strikes at a time when BA is struggling to keep afloat. Add to this the natural disaster of volcanic ash making tourists wary of travelling to Europe and it really does seem a recipe for financial disaster when Greece relies so heavily on turism.
All this would seem to be unremittingly gloomy, but interestingly enough, if you are in the process of buying property abroad right now it may not be.
On Wednesday sterling hit €1.16/£1 against the euro. If there is one single thing that you can do right now to protect yourself, it is to sign up with a reputable currency company like Smart Currency and consider ‘forward buying’ your currency. As Smart mentioned in an email sent out to all clients, and I quote: ” Even though the European Central Bank and the IMF say they have agreed a debt rescue package for the Greeks the markets remain unconvinced. And problems are spreading to other European countries such as Spain and Portugal, whose debts are much greater than the Greeks.”
You can buy currency at today’s rate for up to a year in the future. This means effectively that you will know in advance exactly how much your currency transfers will cost you. You will not have to be in the hands of whatever financial disaster may arise, and that includes any problems that may hit the UK. Frankly, the wisest course of action would be to pick up the phone and have a chat to a currency expert about this. Right now! Go to www.smartcurrencyexchange.com
Let me know how your plans to visit or buy in Greece are going. I am planning a visit in August and I can’t wait! Any ideas out there – what’s your favourite place? I’m toying with the idea of Hydra, Evia or perhaps Corfu…?
Take care…bye for now!
Carol.
www.greecebuyingguide.com
Subscribe to:
Posts (Atom)
