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Greece: Buy property overseas with your head, not your heart - Mike Saunders

Never let your heart rule your head

It always surprises me how people arrive in Crete looking to buy a house, armed with a checklist of must haves supported by in-depth research off the internet – and then they get sprinkled with fairy dust as they get off the plane and everything goes out the window!

I've seen prospective purchasers with heart problems who say they're looking to buy a property which must be close to amenities and have easy access. All very sensible – except they end up buying a house on an elevated site, because it has such a wonderful view! That means they have to walk up a steep slope and probably means everyday amenities would be a car ride away. What happens should you be unable to drive? What happens if the slope gets too much to walk up? They just went with their hearts – which, in the light of their health, was not exactly a well thought out decision.

The market has changed considerably since the financial meltdown of three years ago. Many developers, builders and estate agents in Crete have fallen by the wayside – in fact I believe our company, Snobby Homes, is the only developer still able to advertise in the UK. We have seen the market change from the purchase of holiday homes to those wishing to make a permanent move to Crete. This market tends to be those approaching retirement, attracted to the benefits of wonderful weather, a safe place to live and being able to afford a far better lifestyle on their income than they can possibly enjoy in the UK.

So what prime factors should you really need to consider when buying a house in Greece?

Location
A house should have good access. No dirt track lanes or heart stopping slopes. It should also be close to everyday amenities, have privacy yet not be miles away from the nearest house. Ideally there needs to be a bus service close by, just in case you’re unable to drive in the future. On a wider scale the location needs to be convenient to the airport – certainly within an hour’s drive - and should you need a doctor, easy access to the nearest hospital. Location is all important as this is what you first fall in love with, BUT, keep to those tick boxes. Do not sway from the criteria you decided upon in the cold light of day.

Plot size
“We love gardening” I can hear you cry. My advice is to consider exactly how many hours you’re willing to realistically commit to the garden – especially when the heat can really sap your energy. It’s all very well lusting after a huge plot, but this can become a prison sentence of weeding, pruning and watering 24/7. With the Cretan sun and regular watering you can be self sufficient in vegetables with ground of no more than 2m x 8 m. This will yield all the tomatoes, peppers, celery, aubergines, cabbage and cauliflowers you can possibly eat!

Less is more! A small, well planned garden with raised beds, terracotta urns, shrubs and colourful bougainvillea is perfect for exercising your green fingers, without having to be a slave to keeping a perpetual jungle at bay.

Control your budget
Most people moving over to Crete are on a fixed income. This is the time of life when you need to be strict with yourself and not have to crack open that nest egg because the house you fell in love with cost more than you were led to believe.

If you’re buying through an agent remember, unlike the UK, in Greece BUYERS are charged a fee of 2% of the house price. Then there are legal costs, Notary charges, utilities and property tax. All in all you should budget between 12%-18% to cover these costs. Although some builders cap them and charge you 10%, Snobby is the only developer to INCLUDE all purchase costs within the house price, so you know there is never anything else you need budget for.

Wild cards
Fancy buying a plot of land? Relish the idea of renovating an old stone house? Once you let it be known you’re considering buying a house, everyman and his dog will be your friend. Don’t fall for it – unless you like the idea of giving money away!

Buying land is a nightmare – even for us as a builder. Ownership contentions, boundary arguments and the fact you may own the land, but not the olive trees upon it, can all present frustrating and costly problems! And then there’s land outside a village boundary where you may not even be able to build, or utility connections are an exorbitant cost because of distance.

Restoration requires an open cheque. Old houses do not confirm to modern anti-seismic regulations and because they do not have a foundation there are invariably structural faults which cost thousands to put right. It’s far better to eliminate all risks.

Be firm with yourself
So, make a tick box of features which are must haves in the property you’re seeking. Work out a budget limit – and stick to them! That way, you’ll do it right and never rue the day.

Uploaded June 2011

Mike Saunders

Mike is Marketing director of Snobby Homes, www.snobbyhomes.co.uk

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