Greek property news

Buyers beware: Local Estate Agent trading under our name without agreement in Skopelos Greece

It has recently come to our attention that our copyrighted company logo ‘Angels’ has been reproduced and is being used to sell property and land on the island of Skopelos without our permission.

Angels Greek Island homes is a separate company and has no affiliation with ‘Angels’ For Sale – Homes and Land’ operating locally on the island of Skopelos by Angelo. We therefore can take no responsibility for any property sales or transactions carried out with this real estate agent.

Please see how our copied and reproduced Angels logo looks in the sign below. It does not contain the words ‘ Greek Island Homes’  like our logo

Warning: We do not work with the Estate Agent (Angelo) trading under this name

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Our Angels Greek Island Homes Logo looks like this:

N.B. Please be aware of the difference between the two logos as Angels Greek Island Homes can take no responsibility for any property sales or transactions carried out with ‘Angels’ FOR SALE HOMES & LAND. This is not our company and is not in anyway affiliated to us.  Please see: First report

If you need any further advice or have any queries please contact us

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Edited weekly euro update provided by Deane Roe of Moneycorp

Rising Sterling creates a window of opportunity for Greek Property Market investors.

It was a rewarding week for sterling, climbing from below €1.16 last Monday to open at €1.1810 in London this morning. There was moment’s panic at the very beginning of the week when the pound dipped briefly to €1.15 but thereafter the only way was up.

Sterling’s performance over the week obviously had something to do with the UK economic data – few thought they were – but mainly it was the by-product of another quiet week during which the mood of investors became more upbeat. As one of the allegedly riskier currencies it is more likely to find buyers when the market is less nervous.

The euro’s profile last week was so low as to be almost subterranean. An almost complete absence of pan-euro-zone economic data meant just three useful statistics. Consumer confidence improved slightly from -25 to -23. Inflation – make that deflation – went down from -0.1% to -0.6% in the year to July and unemployment ticked up from 9.3% to 9.4%. Individual national figures did not add much to the proceedings. German consumer confidence was higher and German unemployment was steady at 8.3%. As with sterling, the euro’s main claim to fame was to provide investors with an alternative to the US dollar, which was under pressure throughout the week.

Sterling starts August looking more potent than it did in July. It appears to have punched out of the €1.15-€1.17 range that held it for the previous three weeks, helped by its upward break against the US dollar. The high in June at €1.19 was sterling’s best level since the beginning of December and that must be its next target. The pound has the potential to test €1.21 but, up here close to eight-month high, buyers of the euro looking to invest in the Greek Property Market should take advantage of the higher rate.

It is always best to transfer currency to Greece via the commercial rate and not the tourist rate. Currency specialists like Moneycorp often offer much better exchange rates than high street banks, and their expert dealers offer you guidance to help to ensure you are sending your money to Greece when the exchange rate is at its peak within your given time frame

For information about setting up a bank account in Greece and Skopelos please see: Legal info

To find out about the best ways to transfer money to Greece and Greek Islands

Please contact:

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Conti are a Licensed Credit Broker offering mortgages for property in Greece

How much can I borrow and what proof of income is required?

If you require finance to purchase your overseas property, then Conti a Licensed Credit Broker who have over 16 years experience in the market could assist you in buying your Greek Island home.

Mortgages are only available to U.K residents buying homes in Greece.  Loans are currently available only in Euros.

Based on the valuation or purchase price, whichever is the lower, of the Greek residential property, UK applicants can borrow up to 70% for purchase Mortgages and construction loans.
For all schemes there is a minimum loan of €250,000. There is no maximum. For construction loans it is €250,000 min. The maximum term of the loan is 25 years – available up to age 70.

Current interest rates as at 20th July 2009 are from approx. 3.38% Variable for Repayment loans.

For example: A Repayment mortgage of approx € 250,000 over a period of 25 years at an interest rate of approx 338.% Payment would be approximately € 1247.65 per month. The total approximate amount payable over a term of 25 years is € 374,295

Valuation fees £125.
1% of loan amount is the banks arrangement fee.

All schemes require full documentary evidence of income

Please note, that there are no non-status/self-certification mortgage facilities available in Greece (although renting out your property is permitted), all loans need to be supported by a minimum requirement of proof of income, i.e. if employed – copies of your last three month’s pay slips & copies of your latest P60/Employer’s Reference together with copies of your last 3 month’s Personal Bank Statements will be required or alternatively if you are self-employed – copies of your last three years Audited Accounts & copies of both your last 12 month’s Business and last 6 month’s Personal Bank Statements will be required on application.

Unfortunately in Greece the Lenders will NOT take into consideration any proposed Rental Income from the property for mortgage purposes.

Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. To qualify for a mortgage in Greece, a calculation is used to establish whether you can afford to maintain the mortgage repayments.

All your existing liabilities, including any mortgage/rent payments,, UK council tax, loans, credit card payments and any maintenance (EG: Divorce) payments are taken into account, together with your proposed Greek mortgage payments must not exceed 30% of your net monthly income.

For example: If your net joint monthly income is £3,000, 30% of that figure is £ 900. If your only liability is your current UK mortgage payment of say £500 per month, this would leave a balance of £400 for your Greek mortgage repayment.

Other documents will be required and will be confirmed when application forms are sent to you. Please visit website or speak to an adviser. Conti have a ‘quick quote’ calculator that will enable you to find out how much your monthly payments will be, or complete an online enquiry form to receive an Approval in Principle certificate and quotation.

PLEASE NOTE: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
PLEASE NOTE THAT AS THE LOAN IS SECURED ON THE OVERSEAS PROPERTY IT IS NOT COVERED BY THE UK CONSUMER CREDIT ACT OR THE FINANCIAL SERVICES AUTHORITY.
CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

Contact Conti for overseas mortgage advice or a quote.

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Edited weekly euro update provided by Deane Roe of Moneycorp

Protect yourself from fluctuating exchange rates

A rally at the beginning of the week was followed by an even sharper return to base on Tuesday. After only a little hesitation the pound embarked on a downward path that saw it test €1.16 twice. A Thursday recovery almost to €1.1750 was short-lived and it opened in London this morning (Tuesday 7th July 2009) down at €1.15.60 a cent and a half down on the week.

This may look like a pretty gloomy time to invest in Greek property as the power of the Great British Pound weakens and we end up with fewer Euros. If you are currently planning to buy your Greek island villa, property contracts in Greece can take a few months to complete. Guidance from dealers in the euro are forecasting a rise to €1.20 by the end of the year and their suggestions are to either forward buy and lock in at the current commercial euro exchange rate before it dips further, or to use Stop Losses and Limit Orders.

With exchange rates constantly moving, you may not have time to watch the currency market 24 hours a day in order to achieve the best rate in your time frame. Moneycorp, foreign exchange specialists, can do this for you free of charge. They use a number of mechanisms to ensure you are protected from negative exchange rate movements, and enable you to take advantage of positive ones.

One of the options open to you is to use Stop Losses and Limit Orders. For example, if the current exchange rate of the GBP v Euro is €1.15 but you need to achieve €1.17 to be able to afford to buy your dream property in Greece, Moneycorp would set a Limit Order at €1.17. This means that if the market hits €1.17, even for a fraction of a second at 3 o’clock in the morning when you are in bed asleep your currency would be automatically bought at this level.  This is a great way to have the market monitored 24 hours a day, 365 days a year for you.

Stop losses are used in a similar fashion.  Imagine the current rate is €1.15, but you cannot afford your property if the rate drops below €1.13.  You would like to hold on and see if the exchange rate improves in your given timeframe. A Stop Loss can be set and will be triggered if the rate suddenly plunges below €1.13.  Even if it falls much lower than €1.13, you can be safe in the knowledge that you’ll still be able to afford your Greek Island home in the sun because your currency was bought for you, automatically.

It is always best to transfer currency to Greece via the commercial rate and not the tourist rate.

For information about setting up a bank account in Greece and Skopelos please see: Legal info

For more information or to find out about the best ways to transfer money to Greece and Greek Islands

Please contact:

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Edited weekly euro update provided by Deane Roe of Moneycorp

A three cent range kept sterling comfortably between €1.16 and €1.19. It opened in London this morning at €1.16, a cent down on the week.

The Sterling has dipped this week. Is it still a good idea to invest in the Greek property market?

In the opinion of Angels Greek Island Homes, property prices are still a lot cheaper as the economy tries to recover from the credit crunch. If the pound fluctuates a cent here or there week to week, it would not make that much of a difference on a €100.000 sale. When buying property in Greece contracts can take months to complete and money can be transferred on a day when the commercial euro rate improves, or by forward buying to lock into the currency rate. There is suggestion that Buyers of the euro should bide their time, using a stop order to protect against a reversal but this is generally for day to day business transfers.

It is the much bigger dips that we U.K buyers worry about. There is hope of the euro breaking the physiological €1.20 barrier then stabilizing. This of course would make us feel a lot more confident when buying our dream Greek Island home.

This is where Forward buying the euro to lock into the currencey rate may be the answer.

Since exchange rates are always on the move, foreign exchange specialist Moneycorp, offer the option to ‘lock’ into the current rate of exchange for up to 2 years. For example; Should there be a move back to the €1.10 level from current €1.16, forward buying would save you in excess of £5000 on a £100,000 transfer.

Alternatively, you could use a stop loss and/or limit orders. This is where you instruct your personal dealer to either automatically buy your required currency, or contact you should the exchange rate reach a certain level.

Support and Resistance levels

When watching the currency markets, a foreign exchange dealer will monitor movement within a range. This range is determined by 2 indicators, support (low) and resistance (high) levels. For example, the current range of the Euro would be 1.16 to 1.20. As a buyer, you would look to purchase your currency at the higher end of this range. Imagine support and resistance levels as a room with a floor and ceiling, and the exchange rate as a rubber ball. The ball will bounce off the floor and hit the ceiling, and bounce back down to the floor, back up to the ceiling and so on. At some point, the ball will break through either the floor (support), or the ceiling (resistance). In the real world, the support or resistance level is weakened by data coming out of the market, such as retail sales figures, consumer confidence data, interest rate announcements etc. If there is enough positive or negative data, the exchange rate will break either the support or resistance level, and begin trading within a new range. Your foreign exchange dealer will use their currency market knowledge to provide you with guidance, helping to protect you from negative movements and enabling you take advantage of the positive ones.

It is always best to transfer currency to Greece via the commercial rate and not the tourist rate.

For information about setting up a bank account in Greece and Skopelos please see: Legal info

For more information or to find out about the best ways to transfer money to Greece and Greek Islands

Please contact:

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Edited weekly Euro update provided by Deane Roe of Moneycorp

As the sterling  grows stronger against the euro, now is the time  to buy houses or land in Greece

UK industrial production rises in April. G8 endorses dollar as reserve currency. Euroland industrial production continues to fall

The pound powered ahead from last Monday’s €1.14 opening. It paused at €1.16 on Tuesday before proceeding up to €1.1750, where it opened in London Monday morning.

A much-reduced flow of UK economic data did no harm to sterling. The figures were a long way from perfect but they were an improvement over what had gone before. Even more important, they were generally better (or less worse) than anything the opposition could produce. The Royal Institution of Chartered Surveyors and the government both saw a slowdown in the falling price of real estate. The best news of all came with the manufacturing and industrial production data for April. Both were up on the month. Industrial production rose by 0.2%, slowing the annual rate of decline from 13.1% to 12.7%.

With the ratings agencies still on the rebound from their overgenerous treatment of sub-prime securities they are showing how tough they can be. Ireland has become one of their favourite targets. Standard & Poor’s awarded it another downgrade last week, the second in as many months. It went down from AA+ to AA and there could be more to come. Ireland is not Euroland but its downgrades – and those of Greece, Portugal and Spain – do not help sentiment towards the euro.

Sterling has at last laid to rest the spectre of endless technical resistance in the €1.15-€1.17 zone. Britain’s economic data remain consistently better than those coming out of the Euro zone. As long as this continues the pound will have scope to extend its recovery. Buyers of the euro Investing in property or buying a holiday home in Greece should ratchet their stop order higher again, this time to somewhere below €1.17. The next obvious obstacle is the psychological one at €1.20. Beyond that the more important technical resistance is the early December high in the region of €1.2150. In time that too should give way but perhaps not without another visit to €1.16 in the meantime.

It is always best to transfer large sums of money to Greece via the commercial rate and not the tourist rate.

For information about setting up a bank account in Greece and Skopelos please see: Legal info

For more information or to find out about the best ways to transfer money to Greece and Greek Islands

Please contact:

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Edited weekly Euro update provided by Deane Roe of Moneycorp

A promising start to the week took sterling up from €1.15 on Monday morning to a high of €1.1650 on Wednesday, whereupon it all went sour. A rapid two-cent fall at that point was followed by more damage on Thursday and the pound began Friday below €1.13. Investors have been surprisingly kind to the pound since then and it opened in London this morning at €1.14.

The economic data continued to favour sterling at the beginning of the week. Once again Britain led the way in the Purchasing Managers’ Index stakes with the UK manufacturing PMI rising nearly two points to 45.4. The Euro zone measure also improved, to 40.7, but was still adrift. The German figure was well behind at 39.6.

It was even better news on Wednesday with the services sector PMIs. Investors had been looking for a one-point improvement to 49.5. What they got was a three-point increase to 51.7, putting the UK services PMI in the expansion zone for the first time since April last year. The equivalent Euro zone figure was seven points behind. And
Edited weekly Euro update provided by Deane Roe of Moneycorp

what was the reaction of investors to this outstanding news? Why, of course they sold the pound. Sterling/euro’s six month high coincided precisely with the announcement, suggesting that speculators had used the good figure to offload their long positions.

Beyond the PMI figures the Euro zone had little to say for itself apart from a modest 0.2% retail sales uptick in April that left the overall level still 2.3% lower than a year earlier. In Euroland, as in Britain, the central bank decided against adjusting its policy interest rate, preferring still to go down the “quantitative easing” route and buying covered bonds (or, in the case of the Bank of England, gilts).

The combination of technical resistance and politics has put sterling on the defensive, particularly against the US dollar but also against the euro. The big risk is clearly politics and not, at least for the moment, economics. New Labour has been slaughtered at the European and local government elections and there has been a similar, broadly anti-left, backlash throughout Europe. If Mr Brown finds himself with another wobbly cabinet the market may again take it upon itself to teach sterling a lesson. Buyers of the euro investing in property in Greece or buying a Greek holiday home should place a protective stop order in case of disaster but otherwise look for the pound eventually to break above its current constraints.

It is always best to transfer large sums of money to Greece via the commercial rate and not the tourist rate.

For information about setting up a bank account in Greece and Skopelos please see: Legal info

For more information or to find out about the best ways to transfer money to Greece and Greek Islands

Please contact:

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Edited weekly Euro update provided by Deane Roe of Moneycorp

Sterling dodges downgrade threat. European investors and businessmen are optimistic but unhappy

It did look backwards several times but last Monday’s €1.1250 starting point turned out to be the week’s low. A €1.1450 on Wednesday set the scene for what could have been a turning point but consolidation during the long weekend kept the pound close to €1.1350 and that was where it opened in London Tuesday morning.

The week’s UK economic data were predictable enough to have little or no impact on sterling’s performance. CPI inflation went down in April but at 2.4% remains above target. The updated figure for gross domestic product in the first quarter was no different from the original -1.9% estimates.

The two events that did create waves were charts and credit ratings. On Wednesday last week the pound leapt higher after it broke above technical resistance. Although, in theory, only the sterling/dollar was affected, it scored gains across the board as the market picked up the mood. Less than 24 hours later the boot was on the other foot after one of the three big credit rating agencies warned that UK government bonds were under scrutiny for a possible down-grade. The panic passed almost as swiftly as it had struck when the other two firms said they were happy with gilts’ AAA status quo.

ZEW’s survey of investors and IFO’s poll of business leaders both came up with similar results; they agree that things are betting worse at the moment but will improve in the future.

For those who are buying the Euro to invest in property in Greece or need to transfer funds to their Greek bank accounts should use a stop order to avoid the risk of a sterling relapse. None is threatened at the moment but that does not make it impossible to imagine a surprise collapse. It isn’t as if such a thing has not happened in the past. Specifically the risk is that if the pound fails to break through resistance in the €1.15-€1.16 area it will fall back to what has become its comfort zone.

It is always best to transfer large sums of money to Greece via the commercial rate and not the tourist rate.

For information about setting up a bank account in Greece and Skopelos please see: Legal info

For more information or to find out about the best ways to transfer money to Greece and Greek Islands

Please contact:

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By Roger and Jonathan

In our last post, we talked about investors looking towards buying property in Greece instead of investing in stocks and shares.

We gave a few examples of how the current economic climate may affect the housing market on Skopelos Greece as sales slow down and prices weaken. We wrote that because in general houses on Skopelos can take an average of three years to sell, some Greek property owners were in no rush to reduce prices,  preferring to ‘wait the credit crunch out’. 

We also gave a few examples of some overseas holiday home owners reducing the price of their houses from EG: Euro 120,000 to Euro 95,000 for a quick sale as they feel the need to ‘cash in’ and supplement their incomes back home.

But what about investing in land on Skopelos? some people have asked us “has land also been affected by the current economic downturn?  are there also bargains to be had”?

There is an old saying which runs, “when times are hard, buy land – it is the one thing they cannot make more of”. This certainly holds true for today’s property market in Skopelos.

There are certainly bargains to be had in the housing market as sales slow down and prices weaken, but the main area of growth is the market for land. There are people out there with money to invest and they are reluctant to entrust it to the banks or the stock market.

We have seen private investors with cash to spend taking a strong interest in land on Skopelos. But not just any land – these buyers are being very particular. There must be wonderful views – a sea view is essential – and there must be good access. Size is becoming important too. Whereas most people opt for a property of 4,000 sq metres (the minimum required to build in the countryside) the trend is to go for larger pieces to ensure even greater privacy.

It is possible to snap up an 11,000 sq metre property with good views across rolling countryside to the sea beyond for as little as €82,000 whereas a similar size property with breathtaking 180 degree sea views can be had for around €150,000. And for those happy with 4,000 sq metres, bargains are there for the taking from €45,000.

Some of the good points about buying land are:

You can keep it as an investment and build your house on it whenever you choose.
You can build in the Skopelos style using the best local craftsmen or build a modern design.
You get to choose all the fixtures and fittings.
You build your dream Greek island home the way you would like it to be.

Remember: Your house would have to adhere to the legal Greek property laws and building requirements of Skopelos Island Greece. Please see:  Building and Legal information.

More and more people want to own a piece of heaven – the beautiful Greek island where Mamma Mia was filmed.

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By Jonathan – Angels Greek Island Homes

Due to the current global economic down turn some investors are looking towards buying property in Greece instead of investing in stocks and shares. The Greek property market has taken a slight dip and there are many opportunities attracting buyers to Greece.

“So, are houses prices falling thick and fast on the Greek Island of Skopelos?” potential buyers ask us. “If we buy now, can we get a great bargain?”

Well, the answer is a confusing yes and no.

On Skopelos Island for example, the Greek property owners are quite laid back and phlegmatic in their approach to this new economic climate. They know that selling their houses and land could take about three years and are in no rush to drop prices. Some property owners may just prefer to ‘wait it out’.

On the other hand, some overseas property owners who may be feeling the effects of the ‘Credit Crunch’ have decided to put in their own holiday homes on the market.

Here there are bargains to be picked up. Houses in Palio Klima Skopelos which would of fetched Euro 120,000 six months ago can now be bought for Euro 95,000. Land could also be had at bargain prices. A 4000 sq metre plot that you can build your dream Greek Island home on may be bought for as little as Euro 45,000. How about: Barbara’s House in Klima KH025 or Louise’s House Gloss KH027.

For more details on these bargains and property options please see the Glossa Houses link or price list on our property page.

Now is a great time to be a buyer on Skopelos Island Greece

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