How prices of properties are rising in Greece

According to a 2007 study conducted by "A Place In the Sun" a specialist magazine, through exhibitions devoted to property seekers in Britain, Greece has acquired position No 7 in the top ten most popular countries for a British to purchase a home in the sun.
Results of a survey published in January of 2008 in an article in the Greek newspaper "Kathimerini", showed that in Athens and Thessaloniki in the so called "premier areas" the value of properties have increased by 175% between December of 1998 and December of 2006. On average this rise in value equals to a 26% annual increase. At the same time in the less expensive areas, the value of properties has increased by 91% for the same period, which translates to an average percentage of 13% per annum.
In other parts of Greece as in Crete, the annual rise of property prices is 10 to 15% despite the fact that on the island of Crete, developments emerge mostly in premier areas. The natural formation of this island offers a large number of plots in what is considered by locals and citizens of the world as premium locations.
In the same article mentioned above "Kathimerini", writer Giannis Siotou mentions: According to the experts, renewing a property portofolio according to when it was built and to the current market trends i.e. emerging markets, can protect its value from time. A property is not like wine which gets better as time passes by. Despite regular maintenance its value shrinks as years pass by. However in the Greek property market there is limited experience of investments leading in damages.
Two of the main factors that will help a property maintain its value even in times of crisis are highlighted in the above article but are also known to most property seekers these consist of: a) location and b) quality of construction.
There are a number of developers who believe that in the wider Chania area in Crete there is now an emerging market where prime location is offered widely. Views of the sea and/or mountain peaks covered with snow are found in the majority of villages while access to sandy beaches is often a matter of a few minutes drive or walk. As a result the factor "location" is covered in the majority of cases.
As far as quality of construction is concerned the competition in Chania and Crete is probably more intense when compared to the rest of Greece. The reason behind this is exactly the number of interested buyers attracted and the offer of options through various builders and developers. Naturally selecting a quality builder is vital and property seekers may always remember that people get what they pay for.
In general quality and location exist and that is the reason why, while in most areas in Greece prices remain stable the prices in Crete are raising. However, the raise when compared to other areas in Greece or overseas is reasonable and that is a key factor that protects the market and the purchaser.
A home seeker or an investor may not forget the importance of real estate companies. They are bound to be professional and guide people by offering them independent advice when conducting a research for them.

This article has been written by Nektaria Kladitis, owner of Talos Properties, a real estate company based in Chania, Greece.

For the majority of people looking for a holiday home abroad, a housing loan or mortgage that will provide them with 100% of the house value seems like a gift rather than an option. We are at a time where people receive offers of this kind via e mail.

However, it is a well known fact that the higher the mortgage you are looking for, the higher its cost is to you. Naturally, there are always positive options on offer in countries like Greece, one of the countries with a highly attractive real estate market. In this article we will examine Greece more carefully.

Within 2007 the interest rates on offer started from as low as 2,95%. Naturally, this was the base interest rate, not including house, life insurance or the legally required state contribution. A realistic expectation of an interest rate including these additions is between an average of 4% and 5%.

Fixed interest rates on offer start from 1 year and can reach even more than 20 years depending on the bank. Naturally opting for a fixed interest rate for more than 3 years usually guarantees that the interest rate will exceed 5%.

There is not really a minimum mortgage amount (i.e. some banks mention 3.000,00 euro as a starting point) while it is possible to obtain up to 90% or even 100% mortgage of the property value in some cases.

The repayment period for mortgages is up to 40 years, again depending on the bank, while one can repay it up to the age of 75. There are also financial institutions which offer the option of paying only the interest for the first two years of the mortgage. The installments of the housing loan are always paid after the money is released to the applicant. As in most countries, the banks based in Greece usually request for proof of income from the applicants which is usually supplied through their tax declaration documents.

The question remains: Should someone go for a 100% mortgage? First of all, the recent sub prime crisis in the United States of America (USA) apart from creating hundreds of thousands homeless until recently house owners, has also made banks around the world more careful with their housing loan options. Even in Greece articles in various newspapers such as "Kathimerini" or "Proto Thema" highlighted on Sunday 3rd of February 2008 the fact that Greek banks are going to increase the cost of mortgages and reduce the percentage they offer to cover. This implies that, 90% or 100% funding will soon seize to exist as an option while housing interest rates may soon rise.

As expected, Greek banks want to reduce their risk in this way but at the same time they protect the interested purchaser. Despite the fact that protecting the consumer is not any banks' top priority this helps us to answer the initial question put in the title of this article. Acquiring a housing loan will always be an option, but as a holiday, permanent or investment home seeker you may always keep in mind that there are two ways of reducing your risk:

Available funds enable you to acquire a smaller mortgage amount and thus pay less interest. Always set a realistic amount as your available budget without over stretching your self. At the same time it would be recommended that a minimum 15% deposit is secured before you commence your research in order to buy a home overseas.
Select a country and most importantly a location with a combination of what you are looking for and relatively low mortgage rates. Greece is the example that has been given so far and Crete could be a suggested location. A location is vital for the long term property value and in the island of Crete the real estate market has a relatively modest raise of 10% to 15% per year which makes it stand out when compared with the rest of Greece as a safe investment destination.
Taking these small steps may protect you while purchasing a property overseas and help you to turn this process into a more enjoyable and safe experience.

It is one of these days when you feel that you had a tough day at work while the whole world seems to be against you. You are walking in a busy street and there is not a single person smiling. Dark grey clouds have covered the sky and the cold is so strong you can feel it in your bones. Maybe you can make it to your car without getting too wet.

You are on your way home - yet it seems like this traffic was put there to make the journey last forever. You have tried the bus or similar mass transportation at times but you were so tired that you fell asleep and missed your stop. At least if you are driving in traffic, sleeping is not an option. It is Friday night and people go out but that is the last thing on your mind after being stressed out for the week. You just want to go home and try to relax. Talk to no one or if you must talk, say as little as possible. You are just worn out. At the same time money seems to be never enough these days, while long hours do not necessarily increase your earnings. It is at moments like this when that thought comes in your mind once again:"I wish I could live somewhere else.... I wish I had a different life..."

Who said that it is not an option? Personal dissatisfaction is the primary source of international real estate. There are so many places in the Mediterranean where anyone can have a better quality of life. Crete in Greece is one of them.

A natural question is "Why Crete?"

First of all, in Crete you can probably have a more comfortable home than the one you are living in at the moment. There are villas sold for just 150,000.00 euros and apartments or town houses for just 100,000.00 euros. Going out for lunch or dinner with starters, a main course, half a kilo of home made wine as well as desert for two people at a local traditional restaurant 'taverna' rarely costs more than 25 to 30 euro. Some may ask what the food tastes like. Crete due to its climate has excellent produce of olive oil, vegetables and free range animals. There is such a variety of vegetarian and meat dishes that it is hard for any one to be left unsatisfied.

Then you have the location and the climate. The weather in Crete is by far the best in Greece. With more than 300 days of sunshine per year and a summer that lasts for more than six months. At the same time there are so many places and especially in the Chania region where you can walk on a beach or at the old Venetian port by the sea and be able to see olive groves and snow caped mountain peaks. Most beaches earn year after year the European Union blue flag symbolizing their safety and sparkling clean waters.

However, there is the issue of communication. Let us face the facts. How many master the Greek language? In Crete tourism is a major source of income for the local economy and as a result the majority of people speak at least English. At the same time the fact that Cretans are so hospitable makes tourism a natural result of their way of life.

Not to mention that there is a great number of non Greek nationals living in Crete already. There is even an International Community association organizing activities and bazaars. Not to mention that Greece is one of these blessed places where films are not dubbed. In the Chania region there are at least 8 winter screens and two summer open cinema theatres where watching a film is an experience in itself.

Crete is not the place to stay in and watch television. If you wish to do that%u0392 though, even the Greek T.V. channels have a number of international shows while naturally you can always have a satellite dish installed.

Of course when you are on the fifth largest island in the Mediterranean there are so many gorges, beaches, villages and mountains to explore that even people that live here for their whole life have not seen every corner of this unique place.

If you are looking for a place to buy your holiday place and maybe future retirement home, Crete is also the place to be. But as wise cultures have commented in the past: "I do not understand people from the West. They spend their whole lives working and exhausting themselves so that they can start living at 65, when they retire".

So imagine your self opening your balcony door in the morning and feeling the sun beams softly touching your skin when a slight breeze brings you the aroma of olive groves while you can see green mountains and the bright light blue sea under a clear sky. This is what Crete - and probably life - is really all about.

Nektaria Kladitis is a Greek Canadian who has lived in Canada, Greece and England, acquiring a Bachelor of Arts, a Masters of Science as well as years of experience in properties overseas. Nektaria is also the creator of the property consultancy - Talos Properties.

Talos properties was created in order to guide and protect all of you who wish to acquire your dream property in Crete, the island that has been loved by Gods and humans alike throughout the centuries. When you choose Talos Properties for the search of your property in Crete we can offer you further advice on financial and other matters.

At a time of doubt and uncertainty in the world economy, it is encouraging to be presented with positive facts about Europe. In an article in the Greek financial newspaper "Naftemporiki" published on Friday the 15th%u0392 of February 2008 (pg. 5), the economic growth of all the European Union member states in 2007 is 2,6% when compared with 2006 while Greece had a growth of 3,95%.

Naturally no one can disagree that this growth is decreasing when compared with previous years but it may be considered as leveling off after the explosion of growth which was generated because of the 2004 Olympic Games hosted in Greece. The construction sector was obviously a dynamic element in the growth created during the past five years. The positive factor is that this has evolved in a real estate market for various areas in Greece such as the island of Crete.

It is no secret that builders have become developers because they focused on attracting in Crete, potential home owners from wealthier countries. One of the revelations of the past year is that these companies now realize that Greeks are also looking for properties and realize that the percentage of home owners is quite high when compared with other countries in Europe. By focusing on international clients, companies had forgotten that %u0392 the local culture purchases or builds a house at least once in their lives, for example when one is getting married. Investing in properties for the future generations of a family is equally popular.

A temporary slowing down of the world economy or a sub prime loan generated crisis, can not change the culture of the people in a country, especially when the locals are the Cretans. As a result the purchase of properties is not slowing down exactly because it is also generated from the local market as well as from the international clientele. This means, that the property market has an additional shield of protection and a factor which may convince people to view buying property in Crete as a safe investment.

It may come as a surprise that national or local cultures and beliefs can have an influence in maintaining economic growth in a country. On the other hand, it is important to remember that human resources are behind every economic chart no matter whether it is positive or negative.

Nektaria Kladitis is a Greek Canadian who has lived in Canada, Greece and England, acquiring a Bachelor of Arts, a Masters of Science as well as years of experience in properties overseas. Nektaria is also the creator of the property consultancy - Talos Properties.

Talos properties was created in order to guide and protect all of you who wish to acquire your dream property in Crete, the island that has been loved by Gods and humans alike throughout the centuries.