But what with banks in chaos and lending down to a mere trickle - housing market in the doldrums - and the sterling exchange rate on its knees – is that dream of buying a home in Crete slipping away?
It needn’t be, because there is a cunning plan afoot.
Anyone serious on buying a property abroad will normally have sufficient cash for a deposit. The real problem arises on being able to find the balance - which can be more of a problem if the builder is seeking stage payments to finance the build.
When the pound was strong you were probably working on a budget of around £100,000 or so and for that, in Crete, you would expect to buy a reasonable two bedroom detached house. However that same property today would now equate to something like £130,000 PLUS purchase costs.
YOUR PROBLEM IN A NUTSHELL
You need to get round the poor exchange rate and buy more time to allow the UK market to recover.
A CUNNING PLAN
Firstly let’s consider the exchange rate. Take a look at Snobby Homes. As the builder they sell direct and therefore you save the high commission built in for an agent. While the Snobby build specification is extremely high, through strict cost control, two bedroom detached Snobbys are being developed in western Crete for around £100,000 - and that’s an all-inclusive price of furniture, furnishings, fittings AND all legal fees, taxes and purchase costs. In effect you’re paying the same amount of money as you originally budgeted way back in 2007!
On any house purchase you need to put down a deposit. Snobby Homes are the only builder in Crete to legally secure purchasers’ deposits. This means the money you put down is never at risk. The balance only falls due on completion of contract.
Now solving the big problem. Where do you find the balance? OK, you have the money but it’s all tied up in your house, and in the current UK climate it’s bound to be a couple of years before matters begin to move again.
In Crete, Snobby Homes can help you arrange a 75% mortgage on their properties with an eighteen month holiday before you have to pay a single penny. What does this mean? You go to Crete this year and decide to buy a Snobby and put down a deposit. That house will be completed by the end of 2010. The mortgage pays the builder on completion, but you won’t have to pay anything on the loan until mid 2012. That’s nearly three years from now! In effect you have the benefit of an amazingly cheap bridging loan, and what’s more, there is no punitive fee to pay either, when your house in the UK sells and you redeem the Greek mortgage.
So there you have it, a win win scenario allowing you to realise your dream of owning a house in Crete - now - with a bonus of buying it at the equivalent of 2007 prices!
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