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FREQUENTLY ASKED QUESTIONS
- Why should I choose Crete to own a permanent or holiday home?
There are really too many benefits of living in Crete and we should try to
point out the most essential of them.
- The Cretan residential property market is more fragmented than other
more developed markets. That means that most properties in Crete are either
individually or part of a small complex of less than 5 units.
- Living in Crete is much cheaper than in any other Mediterranean residential
market, such as in Spain, Italy or Cyprus. Crete is the place where you
can buy a property and live for less, as prices are approximately 40%
less than in the UK.
- Crete offers a huge range of residential property reflecting its varying
landscape. Most house styles reflect the original Cretan character and
are built according to the architectural tradition of the island.
- You will have the opportunity to live outside of urban areas, in villages
classified by the Ministry of Culture as typical Greek villages of extraordinary
natural beauty, near the sea or the mountains and taste the Cretan diet,
which is internationally considered to be the healthiest and the big secret
for longevity of life.
- You will live in a place sun-soaked approximately 10 months of every
year, with people renowned for their friendliness and hospitality and
you will feel absolutely safe as Crete has the lowest crime rate in Greece.
- You will mostly enjoy living in a place of significant historical heritage,
a place where east and west civilizations meet, a place where pride, honor
and dignity are a way of life, a place that most Greeks choose for their
second home, as it combines wonderful beaches, mountains, crystal clear
waters, beautiful lakes, deep gorges, and the only palm forest in Europe.
- Crete and particularly Chania area have a continuing upward trend in
house prices year on year as too many people come here seeking a home
in the sun. Most villages continue to see property prices go up each year.
So why not consider buying your own property and making an excellent investment
with your hard-earned money?
- Why should I choose "Exarhos - Homes" to buy a new house or renovate the
one I already have?
There are many significant reasons to explain why you should choose our office.
We will mention only the most essential ones:
- Usually a Greek citizen in order to buy a first or second home will pay
to a real estate agent the legal commission of 2% of the purchase price.
However most agents, having the permission of the owners, demand for higher
commissions from foreigner buyers, that is a commission of 10.000-40.000 €,
besides the legal fee of 2%. Those amounts of money are clearly to their
advantage without you benefit nothing more. We believe that this should
be to the customer’s advantage and try to save all the commissions
of the mediators in benefit of your pocket and your house’s best quality.
- We were already successfully working for the local residential property
market before expanding our business, to build for foreigners buyers also.
- We always prefer to sell for the maximum realistic price, and that is,
in addition to the best services that we offer, the main reason that all
of our clients are most satisfied and respectful for our work.
- Whether you call us or visit our office and discuss all the options available
over coffee, you can be sure that you are applying to genuine Cretans, who
know best the island and especially the prefecture of Chania and who can
advice you to choose the best house in the best area at the best price.
Who can advice you better to buy something in Crete if not a Cretan? Who
can introduce you to the local market in order to have a better life if
not an inhabitant itself? And who can stand by you for everything you might
need in the years to come if not a person whose life is connected with the
island and its tradition?
- We are willing to handle all the details for you, because we know that
making a new investment can be a great source of stress and we want you
to start your new life to Crete the most relaxing way!
- Are there any specific details about the fees, the taxes and all the legal
issues that I must be aware of?
Of course there are. It is a common belief that increased familiarity with
other countries means that we often overlook their cultural and legal differences,
particularly when these relate to buying, owning and selling a property. So
there are many things you need to know in order to invest your hard-earned
money in.
It is true that Greece may have different laws in some parts but
the purchase process is simpler than in the UK. In any case, you don’t
have to worry about a thing as we will give you all the information required
during the whole process, plus an English speaking Greek Lawyer will accompany
you to any meetings in order to support your interests and make sure that
everything is done legitimately.
In the following lines we’ll explain
how buying new properties can be so much cheaper plus we will offer some tax
and building tips about the Greek property market.
- You can really save money by buying a house off - plan (designed but
not built yet) as you pay less tax by buying the house before it is built.
That is, if you buy a plot of land the tax is about 5% of the purchase
price of the plot, whereas if you buy an existing house, the tax is about
15% of the buying price including legal fees. In the first case, you only
pay the tax on the plot and no more when the house is finished.
- Beware of agents and agent fees! These fees vary between 2% - 5% depending
of the value of the property and the extent of the service provided. Usually
a Greek citizen in order to buy a first or second home will pay to a real
estate agent a commission of 2% of the purchase price. However most agents
demand for higher commissions from foreigner buyers. You should also know
that many local estate agents often have dubious ethics.
BEWARE OF VERBAL REASSURANCES ON DETAIL RELATING TO PROPERTIES AND REQUESTS
FOR UPFRONT PAYMENTS!
- Planning legislation: In Greek law, planning legislation outside of urban
areas is very restrictive and typically a property cannot exceed 400m (10%)
of above ground development on a 4,000 sqm plot. So permission can be granted
to build if the plot size is a minimum of 4,000 sqm and as long as there are
no forestry or archaeology restrictions. Permission can also be granted for
plots of 2,000 sqm or less if they come within the planning zone or they have
frontage to a principle municipal road. If a plot does fall within the town
plan then density can be increased by as much as 70%. Building costs will
vary according to the specification of materials. Keep also in mind that all
planning issues must be clarified before you buy anything, as owners of illegally
built properties can be slapped with heavy fines. You must also know that
although the Greek Land Registry now covers much of Greece, certain areas
are not included so always have the property’s legal title confirmed
by lawyers.
- Mortgages: International banks will give mortgages to foreign buyers in
Greece. That is something not worth worrying about.
- Purchase taxation: The first €15,000 of the "objective property value",
which is defined by the Island Revenue Office, is taxed at 7% and everything
above that at 9%. All these are paid by the purchaser.
- The first deposit: Make sure you have a quick
access to a deposit of about 10% of the selling price in order to secure your
property. It is to your advantage to make sure the price you have agreed is
fixed, this means that if the person selling you the property reneges on your
agreement (such as trying to up the price), then he must return twice the
value of the deposit. If the sale falls through because of any other problems
from the search for example, then your deposit must be returned. The deposit
agreement is normally done formally in front of a Notary Public.
- If I decide to buy a house, what are the payment stages in a few words?
Well, it’s quite simple! When the price is agreed, the stages are:
- 10% deposit (Do not accept to give more than 10% deposit in any case!)
- 30% to complete plot purchase.
- 30% to finance the building progress.
- 30% less € 2.000 to finance the building progress.
- € 2.000 on completion of the house.
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