Greece – Avoiding the Sharks

AVOIDING CROOKED LAWYERS

Buying in Greece can have its difficulties, especially in remoter areas, where nepotism and brown envelopes are common. Lawyers, vendor and estate agents have been known to deliberately mislead and misdirect foreign buyers. Whilst this practice is thankfully dying out, there is no guarantee that your lawyer is not conspiring with the vendor’s lawyer. In remote areas, they may well be related to each other, so there is no harm in protecting yourself.

WHATEVER YOUR SITUATION, GET A MORTGAGE

There is one trick for navigating around potential dishonesty, and that is by applying for a Greek mortgage. Even if you have the money to buy a home or property outright, it is good practice to enquire about a Greek mortgage. Think about it this way – if you intend to spend 100 000 Euros outright on a property, spend 90 000 of your own money and put the rest in a high interest account. This will offset the mortgage interest and unlock a completely new layer of legal protection. For a one-off fee, of three or four hundred Euros, the bank will research the property and, if there are any doubts about the legality, they will refuse to give you the money to buy.

Using the bank is an excellent way of gaining an impartial assessment, and it will allow you to double-check your lawyer’s honesty. If there are any issues, the bank will take the vendor to court, and you can sit and watch a provincial lawyer eaten alive by an aggressive Athenian hired gun.

GREEK BANKS – CUSTOMER ORIENTATED

Banks in Greece are generally very customer orientated, and are careful to remember that you are the customer. They are a lot stricter than UK and US banks when it comes to giving out mortgages and loans, and did not over-expose themselves to sub-primes, so have survived the worst of the recent economic crisis. Piraeus Bank, Alpha Bank and the National Bank are probably the most foreigner-friendly banks, and most branches have a representative who speaks good English. They all possess good online banking systems and are happy to give an online mortgage in principle. Piraeus and Alpha have subsidiary branches in London, making the process easier for Brits.

Mortgage rates are set at about 5%, and house prices are falling, so it is a good time to buy that holiday home, if you have the money spare. Property in Greece was never overpriced, so it should be insulated from the worst of the property crash. House-hunters tend to look for a permanent home, rather than a quick profit, and Greek property is a fairly secure investment if you negotiate the bureaucracy successfully. Read more about the Greek market at Brits in Crete.

The International Property Investment Guide to Buying in Greece - A step by step guide to the legal niceties behind buying property in Greece.

Caldera photo by kitsos 13