http://www.snobbyhomes.co.uk/snobbyblog/index.php Copyright 2010, Snobby Snobby en-US SPHPBLOG 0.5.1 http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100719-122116
THE BAD NEWS

Leading accountants Pricewaterhouse Coopers, have published a report on the UK housing market claiming that house prices could remain below their peak levels for the next ten years. In other words there is a 50% chance your home will be worth less in 2020 than it was in 2007. They forecast house prices could plunge by 25% over the next three years.

Ed Stansfield – Chief Property Economist, of Capital Economics - goes one step further. He forecasts property prices will drop by 5% by the end of this year, followed by a 10% drop in 2011 and a further drop of 10% in 2012. In real terms that means the average home today, worth £162,000, will drop to £125,000 by the end of 2012! Take your time and money will just run through your fingers and be wasted.

Ray Clinn, Head of Pensions for Liverpool Victoria Insurance
says, “Britain’s over 50’s have already seen their pension pots damaged by the economic crisis in the UK and we estimate 28% of people aged over 50 will be forced to delay their retirement.” Do you want to spend the rest of your life having to work and then having to count the pennies just to live?

THE GOOD NEWS

We know there is a growing pent-up market desperate to leave the UK, as over the last two years Snobby has seen a positive upward rise in enquiries and number of appointments to view our properties. However, in most cases buyers are unable to make the move until they sell their house and generate the necessary equity.

Naturally everyone wants to get the best price they can for the sale of their house – but the question is can you afford to wait? Prices in Crete have remained relatively stable and are even likely to rise slightly in 2011. If you have a house in the UK with a market value of £162,000, by the end of next year you could have lost nearly £20,000 – and the year after that ANOTHER £17,000 – and that’s not to mention on-going expenses of council tax and TV license, and increase cost of living. The longer you stay in the UK the more money it’s going to cost you. The sooner you do something about it, the more you’ll save. Where would you rather be? Lying out in the sun enjoying a wonderful life – or sitting indoors worried about whether you can afford to turn the heating up?

WHAT TO DO?

Let’s say you’re coming up to retirement and your mortgage is paid up. Bite the bullet and put your house on the market for a quick sale. If you have an average priced house of £162,000, market it for £149,000 – that’s a huge drop of £13,000 – and makes a really attractive price for a fast sale. After the sale costs and legal expenses that would leave you with around £142,000 – on today’s rate that’s equivalent to 170,000 euros.

Move to Crete and as an example, take one of our Snobbys – a two double bedroom detached villa, standing in a spacious walled garden. That would cost you around 120,000 euros and that price includes all purchase costs, fixtures and fittings, so there’s nothing else you need budget for. You’d arrive in Crete, everything paid for, with a nice little nest egg of over 50,000 euros!

Factor in a UK state pension for a married couple of around 750 euros per month, plus a private pension of perhaps 500 euros and you’ll be living the life of Riley. A couple in Crete can live comfortably on 1,000 euros a month – and on top of that you have money behind you too.

Is it really worth losing out on the rest of your life because you want to squeeze that last penny out of your house – when likely as not you’ll lose money while waiting?

If you would like to receive accurate information on a property and living package in Crete just let us know and we’ll do our best to help.


]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100719-122116 Snobby Mon, 19 Jul 2010 11:21:16 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100618-115352
Having seen what appears to be happening in Greece, people from the UK are apparently very frightened - but why?

ARE WE LIKELY TO BE CAUGHT UP IN STREET BATTLES?
Emphatically no! There are occasional protest marches, but these only take place in central Athens near the Greek parliament. There are no signs of any unrest in Crete. Mind you, you’ll find the old boys in kafenions chewing the cud over what the government should or should not be doing. It’s the same the whole world over. Anything bad is great, providing it only affects someone else!

However, there is an agreed consensus in Greece that something has to be done to bring down the national deficit, and it is understood this can only be achieved with a lot of social pain. There is also agreement that the fault of all these troubles lie with politicians and the rich! Bit like the UK then?

IS OUR MONEY SAFE IN GREECE?
Emphatically yes! Greek banks did not follow the UK banks laissez faire attitude along the yellow brick road to ruin - nor did they have to be bailed out by tax payers’ money either. In fact Greek banks were one of the first in the EU to protect savers should a bank default against their obligations.

The bankruptcy headlines which plagued Greece were brought about because the money markets smelt profit and began to levy inflated interest charges, making it impossible for Greece to raise money and repay its loans. With the pan-EU financial package now installed this threat by the money markets against countries such as Greece, Spain, Ireland and Portugal now affords protection and with it consolidation of the euro.

IS GREECE A DANGEROUS A PLACE TO LIVE?
Emphatically no! If you’re living in Newcastle and see on TV a demonstration happening in London, do you suppose the whole country is up in arms? Of course you don’t. Greece and its islands are just as safe as they ever were. Culturally Greeks are brought up to honour guests and there is a genuine friendliness extended towards UK holidaymakers and those who live in the country permanently.

SO WHAT’S ALL THE FUSS ABOUT?
The Greek government has announced severe austerity measures to dramatically reduce its deficit over GDP. The UK government has to do the same and the British public will have to swallow the same bitter pill. However, average Greek wages are only 800€ - 1,300€ per month, which is not even half the average UK salary. And out of that, typically, employees have to pay around 250€ a month towards the equivalent of the Greek NHI. The majority of employment - just as in the UK - is in the public sector which is taking the brunt of cut backs. Wages are being cut by up to 20%. How would you react if your earnings were being cut by a fifth?

That apart, there have been occasional protest marches - but only in Athens - where matters have occasionally got out of hand, just as they do in London. Various job sectors have also been holding one day strikes - lawyers, banks, doctors, taxi drivers, and teachers. These are well publicized and in typical laid back style, locals put up with losing a particular service as it’s only for one day.

VAT went up and is going up again to 23% from July 1st. Duty on petrol, tobacco and alcohol has also been increased. However, the cost of living is still way below that of the UK. You can still live in Crete comfortably on an income of 1,000€ per month - and enjoy eating out each week without having to watch the pennies.

SO WHAT IS IT REALLY LIKE TO LIVE IN CRETE?
Crete accounts for 85% of the overseas property market in Greece and is where most Brits opt for as the place to buy a home. Apart from 320 days of sunshine a year, winters without any frost or ice, little crime and a good healthcare system, the quality of life is unbeatable - it’s almost the same as living in the UK forty years ago, when life was slower, there wasn’t an immigration problem, children showed more respect, there wasn’t the fear of walking the streets at night and none of this political correctness or litigation mentality. If these values are your values, if a land of sunshine is your ideal, if an affordable lifestyle is what you would love to enjoy, then come on over. You won’t regret it.






]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100618-115352 Snobby Fri, 18 Jun 2010 10:53:52 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100429-083844
The British media may be reveling in the traumas of the Greek economy – but at least the government here is doing something about it. Unlike the UK, where despite a deficit being just as dire, all parties remain like ostriches, heads firmly stuck in the sand, refusing to come clean and take the necessary drastic action to solve the problem. Before the taxing sword of Damocles falls and cuts your quality of life in the UK, isn’t it time to make the move and get out?

There is greener grass to be found in Crete. Brits who have taken the plunge now enjoy a lifestyle they couldn’t better in the UK.

Crete enjoys 320 days of sunshine every year – guaranteed! It has the lowest crime rate in Europe so you can rest easy, and a hospital system which is surprisingly good – with no MRSA or waiting lists. Housing too, is far cheaper. You get far more bricks for your pound in Crete.

COST OF LIVING IN CRETE

Sell up in the UK, buy a Snobby in Crete and chances are you’ll still have a nice nest egg left over. So you have a pension and investment income of around £12,000 per year. You can either stretch to make things meet in the UK – or live the life of Riley in Crete, where a pension goes a whole lot further. For a start there’s no council tax. Typically that’ll save you about £1,400 for a start.

What about everyday living? We did a little price comparison and took standard prices from ASDA and compared them with what you pay in Crete – using an exchange rate of 1.1€ to £1.00 and quoting all prices in sterling.

UK - ASDA ............................... Crete - AB Supermarket

£2.21 - Twinings Ceylon Tea - £1.38
£1.50 - Fairy Washing-up Liquid - £1.45
£6.78 - Persil Non-Bio - £4.05
£1.36 - Butter (250gm) - £1.29
£0.95 - Granulated Sugar (1 kilo) - £0.75
£0.64 - Tinned Tomatoes - £0.42
£4.10 - Premium Toilet Rolls 10 pack - £3.90
£5.98 - Pork chops (per kilo) - £4.08
£3.38 - Chicken thighs (per kilo) - £2.72
£0.76 - Potatoes (per kilo) - £0.63

On this basis our shopping basket, with a much wider range of products, cost 12% less in Crete. We did not factor in any special promotions, or own brands, at either supermarket, which would affect a true comparison.

Also, there is 21% VAT levied on food in Crete. How long will it be before the UK follows suit with the rest of Europe?

Typically a monthly supermarket shop of meat, fish, groceries and cleaning materials, for two people living in Crete, costs £200 - £400 depending how frugal you are.

A couple living in a two bedroom Snobby would be likely to spend the following each month. (Prices quoted in sterling)

Housekeeping - £400
Water and electric - £80
House insurance - £9
Telephone and broadband - £45
1.3cc Hatch back car – Car insurance and road tax - £40
Petrol - £45
TOTAL - £619

That leaves a disposable income of over £381 per month. Typically you can eat out, including wine, for around £20 - £25 per couple, so you can afford quite a few romantic dinners each month and still have money to spend.

LOWEST NEW BUILD DETACHED HOUSES IN CRETE

With the financial muscle of no bank borrowings, careful cost control and selling direct without the cost of agents, Snobbys are the best value you’ll find in Crete.
Our small developments of two and three bedroom Snobbys in the village of Drapanias in western Crete have sea views from roof terraces and are within walking distance of local amenities and the beach. Already three of the seven houses are sold. Prices start from 109,950€ - and that’s all-inclusive of purchase costs, legal fees and a high specification of features and luxuries other builders charge extra for.
Imagine that?

In the UK a two bedroom detached house would set you back around £180,000 plus!

]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100429-083844 Snobby Thu, 29 Apr 2010 07:38:44 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100318-134644
It’s all very well taking the UK media’s arrogant approach of pillorying a mismanaged country borrowing too much, but people in glasshouses shouldn’t throw stones.

UK economists are saying Great Britain will be in the same boat as Greece with a similar budget deficit of around 12% of GDP. Government borrowing in 2010 alone is expected to hit 180 billion pounds. Is there any hoo-hah about that? No! What steps have the British government taken towards rectifying this horrendous borrowing? Nothing!

Greece is a small country without a manufacturing base, with a GDP amounting to less than 4% of the euro zone as a whole. Despite the furore on whether it will be bailed out by the EU, or calling in the IMF, Greece has taken draconian steps to bring down its deficit, and put its own house in order, without any outside aid. That should be applauded. When the UK economy ran into problems in 1976,with inflation running at 20%, the then Prime Minister Jim Callaghan had to run cap in hand to the IMF asking for help. Will history repeat itself this time?

It’s worth noting that Greece has taken steps to ensure its borrowings are reduced to the acceptable EU cap of 3% of GDP by 2012. On 16th March the UK government rejected calls by the European Commission to do more to cut its ballooning deficit. The UK is not expected to bring down its borrowing to the accepted level of 3% until way beyond 2015.


WHAT ABOUT RIOTS – WHAT ABOUT THE GREEK ECONOMY?

Over the last two years overblown credit and poor lending by banks almost brought Britain to its knees. Greek banks were far more sensible and did not follow the same path as their counterparts in the UK and USA - and being a cash society, there is not the same heavy personal borrowing in Greece.

As you would expect, when a government brings in austere measures, there are always demonstrations, but that’s not the whole country up in arms. Think back to the Thatcher years, did we all publicly march in protest? Of course not. Mind you, what with increased fuel costs and rumors abounding that VAT in the UK is likely to be increased to 20%, will you be taking to the streets?

In Crete we recently had a protest by farmers who blockaded the main highway, preventing the movement of traffic. You can imagine the headlines. However, the blockade lasted half an hour, traffic was allowed to pass and thirty minutes later up went the blockade again for a further half an hour. How civilized!


WILL I LOSE OUT IF I BUY A HOUSE IN GREECE?

Unlike the UK, Greece has not suffered from a plummeting housing market either. Consequently property prices have remained stable, with none of the fire selling of distressed sales that have gone on in Spain. Crete represents some 85% of the overseas property market in Greece and is recognized as being a prime holiday destination and popular location for buying property abroad. Due to this popularity EasyJet have just launched a new scheduled service of direct flights from Gatwick to Chania. This investment certainly bodes well and says a lot about the stability of the country and its continuing popularity.

VAT in Greece has just gone up to 21%, but on checking food prices, which attracts the full tax, groceries are still around 15% lower than in the UK. Mind you I recently read both the leading political parties in the UK are considering the option of putting 3% - 5% VAT on food!

The Foreign Office has just published research showing 42% of the UK’s 55+ age group are considering making the move abroad? Is it any wonder? You don’t pay council tax in Greece, the weather is glorious with 320 days of sunshine per year and a couple can still live really comfortably on an annual income of 12,000€.

Certainly from the increased response we are getting at Snobby, for homes in western Crete, there is a move afoot, which will only get stronger. Come on over. The water’s warm and life is good.
]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100318-134644 Snobby Thu, 18 Mar 2010 13:46:44 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100223-120328
For minor ailments you can do no better than ask the local chemist, who is trained to advise and recommend medication. He will also take your blood pressure too. Many times we have had visitors from the UK who are staggered to find they can buy their prescribed medication over the counter at the local chemist, far below the cost of a prescription charge in the UK.

Most large villages have a Medical Centre, where a Doctor will treat you, although it has to be said you will invariably be sent to see the Pathological Doctor (equivalent to a GP) in the nearest large hospital.

Don’t you have to pay?

If you are of pensionable age then you are entitled to free medical care and hospital care. Register with IKA in Souda road, Chania, to obtain an IKA Health Book, and you will be allocated the name of a local Doctor. By telephoning 184 – the national appointments telephone line – you can also arrange to be seen by a specialist consultant. However, this will be made easier when telephoning if you have someone beside you who can speak Greek. You will not be required to pay for medical treatment and prescriptions given under the IKA scheme may be taken to any chemist where you will be charged just 25% of the full cost.

You should also remember that personal patient care in Greek hospitals is not undertaken by nurses. Culturally patients are looked after by family members who may even sleep in a chair beside the bed. You can of course pay privately for a nurse if you prefer.

Hospital is never a place of enjoyment – and being in a foreign country and not understanding the language does little to help the stress and worry of an operation. Of the several Brits we know who have had surgical procedures, they have nothing but praise for the treatment they received from the Greek national health system. And unlike the UK there are no significant delays, waiting for an operation.

I DON'T QUALIFY FOR FREE MEDICAL CARE. WHAT ARE MY OPTIONS?

If your main residence is in the UK you can apply for an E121 Form from the Post Office. This card provides free hospital and medical care in Crete on a temporary basis.

If you intend to reside permanently in Greece you have two options.

PAY AS YOU GO?

Visit a local doctor – the equivalent of a GP – and you will be charged around 30€ for the consultation and a prescription. Arrange to see a specialist consultant and the fee is around 50€ plus the cost of any tests required. The Gavrilakis Clinic in Chania undertake blood and urine tests, x-rays, ultra-sound, MRI scans etc. The charge for an MRI scan for example is around 240€ which would normally cost several hundred pounds in the UK. In Greece you generally get results within 48 hours. The cost of an operation such as a hysterectomy for example would cost in the region of 4,200€ - which includes all surgery costs, private room, nursing care, medication and aftercare consultation.


PRIVATE HEALTH INSURANCE?

IMPORTANT POINT While you can receive private health insurance cover for life, you cannot be older than 60 years and six months before first applying for cover. Over this age you will be unable to take out private insurance cover.

There are many packages on offer from basic cover to the whole nine yards. A top of the range insurance from the Agrotiki Bank for example, provides cover - for a couple - and costs 2,200€ per annum. For that, you are covered GP, specialist consultant, surgery, private room, nursing care, post-operative care, medication and clinical tests. A cheaper package of around 1,000€ per annum, for a couple, gives you ‘hospitalisation’ cover of surgery costs and medical care.


HOSPITAL EMERGENCIES?

For any emergency go to the Accident and Emergency Department in Chania Hospital at Mournies. Emergency treatment is usually good, you rarely have to wait too long to be seen and doctors usually speak some English. You should show your health card, IKA book or private health insurance. You will be required to pay a small cost for some tests, such as x-rays - about 5€ each – but if you are not covered by IKA, or don’t have private health insurance, you will be required to pay full costs for any tests.

All in all – no matter where you are in the world - nobody relishes the idea of hospitals. Just take solace from the fact that living the Cretan lifestyle is supposed to mean you will live a long and healthy life.



]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry100223-120328 Snobby Tue, 23 Feb 2010 12:03:28 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry091220-083042
We are always being asked - or told - “We’re in the EU, of course I can bring my car into Greece. I checked with the Greek Embassy in London.” Yes, you can bring a car into Greece, but did you ask, “How much will it cost to register my car in Greece?”

If you don’t ask the right question, you won’t get the correct answer. In fact the same import rules apply for caravans and boats too.

Generally speaking it is an expensive and complicated exercise to permanently import a car into Greece and begs the question, is it really worth it? Although officially there is no import tax within the EU, Greece charges a "registration tax" on imported vehicles and this can be high, even on older second hand models. This registration tax is calculated as a percentage of the value of a new car, with a sliding scale of discount for older vehicles. We have heard figures up to 140% on value have been levied!

IMPORTANT FACT - You may have all the paperwork in place ready to clear customs, but unfortunately you’ll find the charge levied is not set in tablets of stone. The calculation is open to individual interpretation - on the day - by the customs officer in charge. It is futile to argue, or disagree. If the customs official has had a bad lunch, chances are you’ll be charged more than if he is in a good mood.

If you are intending to stay longer than six months it may be wise, and most likely cheaper, to buy a new or secondhand car in Greece, for which you will require a Resident’s Permit - but that’s another story.

However, for those who wish to make a personal stand for freedom, and wish to take on the whole gamut of bureaucracy, then please feel free, but don’t say we didn’t warn you! Your best bet is to contact the Greek Embassy at 1A Holland Park, London W11 3TP and obtain the necessary forms, or go to their web site - www.greekembassy.org.uk The best of luck!



]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry091220-083042 Snobby Sun, 20 Dec 2009 08:30:42 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry091101-114043
That’s why it’s far better to live near a working village serving the local community, because here, shops remain open and invariably you’ll find places to eat. One of the pleasures in Crete is to eat outdoors, but during the winter you dine inside, which unfortunately can often mean eating under the glare of strip lights, creating all the ambience of a bus station.

From the end of October the weather becomes variable, and while November, December and March remain mild, January and February are the coldest months - but not cold as you know it! For these two months you can expect average daytime temperatures of around 12°c - 16°c - with night time dropping to 5°c - 10°c. However, in January there is invariably one week of hot weather called the Halcyon Days, where temperatures can soar above 20°c.

The worst winter weather you can expect comprises an equal ratio of sunny and rainy grey days during the month and you can bank on there being no frost or snow - except up in the mountains.

Winter in Crete can be grey and gloomy - there can be heavy rain and storms - but you know within a couple of days there will be blue sky and sun. In the UK it begins to get dark in the middle of the afternoon, in Crete night time doesn’t fall until five or six o clock.

In a modern house in Crete - even if you are a chilly mortal - it is rare you’ll feel the need for heating during the day. It’s just not cold enough

TOP TIPS FOR WINTER

As the sun goes down, dusk can bring with it a damp chill. That’s the time to draw the curtains, or close the shutters, before the cold permeates the house. Without this insulation you’ll find the air inside your home will be uncomfortably cool.

The fabric of a house can become quite warm during the day, and as temperatures drop during the night, so air within the house condenses. Our top tip is to invest in a de-humidifier, which costs around 170€ and is very economical to run. Designed to operate only when it senses humidity it removes cold dampness in the air allowing your heating system to operate far more effectively - and economically. Not only that, you feel warmer too.

If you use your home just for the summer, then it is very important to follow a few key points. Seal all clothes in plastic bags to prevent air getting to them. Leave shoes out in the middle of the room. Leave all kitchen cupboards and wardrobe doors open. Pull furniture away from the walls to allow air to circulate. Even better is to arrange for someone to open all the windows on a sunny day - at least once a month - to give the house a good blow through. Follow this procedure and it will minimize black mould forming on walls.

Is winter a problem? No. Crete winters are quite mild - like an April in the UK, but without any frost!
]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry091101-114043 Snobby Sun, 01 Nov 2009 11:40:43 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry090920-085631
The first thing you need do is to understand the UK system of applying for a mortgage is different here. In Crete - a whole different criteria applies. In the UK administrative systems are set in tablets of stone, you will find in Greece methodology is always changing - often depending upon who you speak with on a particular day. However, as accurate as it is possible to be, here are the whys and wherefores of applying for a Greek mortgage.

FIRST STEP
You need to fill in a Bank Mortgage Application Form - which will ask for your Greek tax number, the type of loan required and the duration of the loan. This is normally 30 years, or up until aged 70. A Personal Data Form needs to be completed, which allows the bank to apply for references in the UK. You will also need to provide a current P60, a Credit Report from the likes of Experian, a recent pay slip and a UK utility bill.

Armed with all this information the branch will translate all the documents and process all the material, before forwarding the file to Athens. This takes more than a little time! Having gained approval, references are then taken up via a UK branch of the bank in London. Allowing for all the bureaucracy, and information becoming mislaid, or copies asked for, an approval, in principle will be made, that you qualify for a mortgage. Please bear in mind no confirmation letter is issued. You will probably receive an e-mail from your lawyer informing you of the news.

SECOND STEP
Several weeks prior to completion of your house a surveyor from the bank will visit the property for valuation. At this stage the bank will also ask for copies of planning, build license and sales contract and the whole bureaucratic machine creeks into motion - until maybe a document is lost in the system and replacements have to be provided! At this stage you will undoubtedly be asked to again provide recent pay slips and another P60.

Unlike the UK, where a Building Society will keep the deeds, in Crete a bank has to go into court to register their lien on the property - because you keep the deeds. To allow this, you have to do a special Power of Attorney - either in Crete or at the Greek Embassy in London.

Finally, as part of the mortgage arrangements the bank will ask you to take out a structural insurance and a mortgage protection policy. The latter will require filling out yet another form.

At long last the bank goes into court and several days later funds are advanced to your account. Phew!

THINGS TO CONSIDER

The bank will charge for legal, survey and court costs, which, together with insurance cover totals around 2,500€, which is taken off the advanced funds, so you need to budget for this.

There are several bank mortgage options currently available - fixed rate and variable - there’s even an eighteen month holiday option before you need pay a single euro. However, whichever package you opt for, bear in mind there are no horrendous early redemption penalties.

You could even consider a Greek mortgage as a cheap ‘bridging’ loan while you wait for your house in the UK to sell.
]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry090920-085631 Snobby Sun, 20 Sep 2009 07:56:31 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry090725-083719
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!
]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry090725-083719 Snobby Sat, 25 Jul 2009 07:37:19 GMT http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry090606-101159
A tin of HP Baked Beans might cost 2€. Convert that into sterling and it virtually costs a whacking great £2. Back home Tesco charge a fraction of that price! If you intend to buy the same food brands as in the UK, and shop only in the tourist areas, then you’ll find no real difference in the cost of living between Crete and the UK. This isn’t due to extortionate prices in Crete, they’ve remained more or less the same. It’s the poor pound that makes everything appear more expensive.

Bearing in mind a typical office worker only takes home around 900€ a month, then you see it should be possible to live on around that figure. Back to the beans again. Culturally, Greeks don’t eat canned baked beans, they cook their own. Importing goods just for tourists is an expensive business you have to pay for. It makes better sense to follow how the locals shop.

You’ll find buying seasonal fresh fruit and vegetables from the greengrocer works out very cheap. In the last few years three Lidl Supermarkets have opened up in the Chania area where a monthly shop of groceries, cleaning supplies and beers or wine will typically cost around 150€ for a couple. Supermarkets such as Champion, Maxi Dia and large IN.KA’s also keep prices low and invariably have a frozen and fresh meat counter.

There is no council tax in Crete, apart from several euros added to each utility bill. Typically, living permanently in Crete in a two bedroom Snobby the annual water bill should be less than 100€ but if you have a pool, it’s more likely to be in the region of 250€. Typically electric should cost an average of 80€ per month. Bear in mind that includes air conditioning, but hot water is FREE for several months of the year.

New cars are around the same price as the UK, but because of a buyer’s and seller’s tax, the price of vehicles 2-4 years old are still relatively high. Car insurance is more expensive than in the UK and most people opt for third party as repairs are relatively cheap. If you want to do the British thing and go fully comp., then this bumps the price up even more. Road tax is based upon engine size and is comparable to what you pay in the UK.

Eating out is still relatively cheap - providing you steer clear of tavernas catering more for tourists. Far better to go to places frequented by locals. Here, dinner with local wine will cost around 12€ per head - unless you opt for fresh fish and then it will more than likely be around 20€.

If you have an income of £12,000 per year, then for this Crete offers a comfortable lifestyle, covering all the bills, running a small car and dining out regularly.
]]> http://www.snobbyhomes.co.uk/snobbyblog/index.php?entry=entry090606-101159 Snobby Sat, 06 Jun 2009 09:11:59 GMT