Buying Property in Mallorca is Still Possible Despite the Crunch

Buying a property in Mallorca (Majorca) is not a priority in most peoples minds at the moment.  With constant news bombardments about the “credit crunch” and the looming “recession” and the rising price of oil to list but a few negative factors, this comes as no surprise.

But now it seems the banks have woken up to the fact that they are not signing any mortgages and as a result, there is good news for those potential buyers still willing to dip there toes.

In fact, right now may prove be as good a time as any to buy property in Mallorca (Majorca).  Lets look at the facts.  If you had 300.000GBP euros to invest in a second home, holiday home, in a little luxury in Mallorca (Majorca), the chances are that you still have the same amount to spend now.  Those 300.000GBP have not gone away.

Yes, if you are a British buyer, the exchange rate is such that you do not have quite as many Euros as you may have liked but who is to say that the GBP is going to recover to the almost dizzy heights of 12 months ago.  It may just be that the pound had simply been too strong for too long.  Now, I am no currency expert, but I do know that people had got so accustomed to a high exchange rate that they thought it was the norm.

Certainly in the eye of the British buyer, there is a false expectation that the low pound will cause property prices to fall in Mallorca (Majorca).  This is not the case and in fact, in 2007, prices in Mallorca (Majorca) continued to rise and our own data for 2008 shows that prices remain stable.  The reason, well, there are plenty of buyers in the Euro zone who are unaffected by the exchange rate.  At the end of the day, we cannot influence the exchange rate, but we must accept that this might be where the rate is going to remain for the medium term.

Furthermore, the banks are now mobilizing to attract buyers to take by offering much more economical products to counter the negatives of a weakened pound (for the British buyer) and the rising EURIBOR.  We are now starting to see the active promotion of mortgage products that, although not new, were never at the forefront of what was being sold.

The word of the day seems to be “Multi Currency Mortgage” whenever we are approached by a bank about the latest mortgage product offerings.  So what do these products offer.

Essentially, they allow you to borrow the capital in a currency other than EURO from a choice of either US Dollars (USD), Swiss Francs (CHF) or Japanese Yen (JPY).  Instead of the interest being charged on EURIBOR which is currently on the increase, the base rate that the bank is using is the LIBOR rate for that given currency, on a monthly variable basis.  And that is where the bulk of the saving is.  The monthly LIBOR Rate for Japanese Yen (JPY) is in the 0.7% region roughly 3 percentage points cheaper than the monthly EURIBOR Rate.

On a 200.000,00 EURO loan equivalent, there is a monthly saving of over 370,00 EUROS with a Multi Currency Mortgage taken out in Japanese YEN with respect to a standard EURO mortgage with similar terms and conditions.  In fact, even for the British buyer, this saving actually negates the weakness of the POUND (GBP) in the sense that, if the Pound were tracking at around the 1.45 EUROS rate, your monthly repayment would still be higher if you have a conventional EURO / EURIBOR mortgage.

Now this product is not without risk and is certainly not for everyone, especially not those who are at the limit of their budget.  There are two varying factors that can fluctuate and influence the repayment amount every month: the EUR/JPY rate (or EUR/USD, EUR/CHF).  If you are a British buyer, add a third element, the GBP/EUR rate.  The beauty of the product is that there is the facility to change the currency of the loan during the term.  The “safer” currency being the Swiss Franc (CHF) where there is more stability against the EURO although subsequently, the saving is also less although it does offer peace of mind.  Furthermore, you can also revert back to EURO / EURIBOR should you wish.

In terms of costs, to arrange a mortgage in Mallorca (Majorca) , the provision of funds is about the same at 3.5% of the loan amount.  As well as an independent bank valuation of the property, there is generally a 1% arrangement fee, 1.6% stamp duty on the total loan risk as well as the notary and the land registry to be paid.  This is true for both Multi Currency mortgages as well as traditional Capital Repayment mortgages in Euros.

So, if prices are not falling and if there are mortgage products that are cheaper than the traditional capital repayment, why would you not buy now?  If you don’t, it may be that the market recovers before you realize and we start seeing the 5% to 18% price increases that we have had in the past and the property you want becomes even more expensive.

 

Helpful Information About Online Banking

The word “bank” is derived from the Italian word “banca”, which comes from Germany, meaning “bench”. For banks to exist, they need to make a profit just as with any other business. For traditional brick and mortar banks, the majority of profit comes from fees charged for various financial services being offered, as well as interest being charged on loans, CDs, etc. While online banking also makes a profit through fees and interest charged, other ways are used as well.

For instance, thanks to technology, online banks have the ability to create affiliate partnerships whereby networking and sharing of information yields profits. Additionally, online banks can set up pages on their websites for information and tools such as articles and loan calculators. In this case, the pages would be established as pay-per-click opportunities, meaning that every time a person clicks over to one of those pages, the bank makes money. Specific to making profit, it is easy to see that options for online banking tend to be more innovative and fluid than with traditional banks.

Now, for online banking associated with a conventional brick and mortar bank, chances are good that regular customers would not be subject to some of the fees that people creating accounts only online would incur. It would be expected that some fees would apply through an online bank such as a fee being charged to transfer money from one account to another but these are typically nominal. Considering the thousands and thousands of online customers, the small fees would quickly add up, proving to be a nice money-making opportunity for the bank.

Millions of people all around the world now use online banking and while these people are fully aware of the convenience and time-saving benefits, there is much more to know. If you have interest in banking online instead of in person, it would be beneficial to learn all you can in that with knowledge, you can make educated decisions. For one thing, some online banks are divisions or extensions of conventional brick and mortar banks but for others, operation is done solely online, without a brick and mortar location existing.

The same would be true regarding the products and services offered. In other words, both types of banks offer checking and savings accounts for both personal and business needs, loans of varying types, money market accounts, certificates of deposits, etc. However, conventional banks and online banks also have unique characteristics. With internet banking staying open 24×7, 365 days a year, you would have the chance to pay credit card bills, transfer money, check accounts, and manage other finances from virtually anywhere in the world. On the other end, conventional brick and mortar banks have notary public services and rent safety deposit boxes whereas online banks do not.

As mentioned, the convenience factor of online banking has made it a huge success. If you maintain an online savings or checking account but plant to travel on vacation, you would handle many financial issues sitting in a hotel room, dining at a beach side cafe, or from your wireless mobile phone while at the beach. With this service, you could track accounting, reconcile an account, determine if a check had cleared, transfer money, etc. Just imagine going out of town to relax only to remember you forgot to pay an important bill. Instead of panicking, you would simply log onto the internet bank and within minutes, have the bill paid and a confirmation number saved.

Online banking is convenient for other reasons too. For instance, rather than fighting to get to the bank in time to hit a deadline when sick, pushing through two feet of fresh snow on the ground, or having no one to watch the small children, you could handle your banking needs online without ever leaving the home. Although online banking is now a well established service, with so many new banks launching sites, the types of products and services are becoming more competitive. Even prices, fees, and interest rates are changing so banks can stay competitive.

Reverse Mortgages – FHA HECM

The concept of a Reverse mortgage

Any home owner above the age of 62 years (since the minimum requirement age is 62 years old) can receive cash flow from the accrued equity on their home (property). The payments are free of tax and does not require repayment. The reverse mortgage is ultimately paid off sometime in the future when the home is sold. There are however, certain conditions which a home owner needs to fulfill to be eligible for a Reverse mortgage loan.

A Reverse mortgage loan requires the following conditions to get approved:

*For a senior Reverse mortgage, a house owner needs to be at least 62 years old
*The home has to be the primary residence of the home owner
*Before or after the completion of the HUD application, counseling by a certified HUD counselor is required. Counseling is mandatory and must be done before the loan is funded.
*The house has to be a single family residence or mobile home built on any permanent foundation which is built after July 1976, condos or 1-4 unit buildings.

Some considerations related to obtaining a Reverse mortgage:

*Home ownership remains with the homeowner for the entire life and the remaining equity is passed on to the heirs.
*Proceeds from a senior housing option are tax free.
*No repayments are to be made as long as the home owner is residing in the home.
*The proceeds can be used for almost all purpose like repairs and home improvements, education of grandchildren, paying off credit card debts, medical expenses, paying taxes etc.

There are certain costs for a Reverse mortgage like the mortgage insurance premium (paid to the FHA at loan funding and then accruing monthly), loan origination fee (given to mortgage brokers or mortgage lender) and other traditional closing costs (which generally include the title policy, documentation fee, notary fee etc.).

The FHA (the acronym for Federal Housing Administration) reserve mortgage program is known as the Home Equity Conversion Mortgage (HECM). The FHA HECM provides cash flow to the homeowner based on the equity accumulated on the house. Like all reverse mortgages, the FHA HECM does not ask for any repayment on the mortgage until the home owner dies or decides to move out by selling the property. Today the reserve mortgages are also provided by the commercial lenders using conventional loans.

The current economic turmoil in the financial markets has been worsened by the fact that some retired home owners are also facing the pain of adjustable rate mortgages. Combine this with a job loss or forced retirement and you have a situation where money is tight. Another factor is decreased income from poor performing investments. This situation can lead to a foreclosure. Senior reverse mortgages may provide a sigh of relief. Traditional refinancing with another adjustable rate mortgage (ARM) or a fixed rate mortgage (FRM) may no longer a viable option. The FHA HECM gives them the option of paying off their existing loan and stopping a foreclosure with reverse mortgage proceeds. Qualifying is based only on age and equity in the home-not credit. This can be a viable option that should be explored if the senior wishes to remain in their home and has enough equity to pay off their existing mortgage liens.

Buying Property In Spain

Have you done your homework?

No, we are not back at school, hating the dreaded homework as it stopped us doing other “better, more exciting things” To clients we ask this question regularly. With so much information at hand on moving to Spain, we ascertain what they know and listen to what they want.

Seven years ago whilst doing our homework on this area, a chance meeting with a British couple who have lived here for over 20 years gave us more of an insight than any books, websites or TV programmes on the subject of relocation to Spain. One comment they made was “if you wouldn’t do it at home don’t do it here” they warned us about buying property and other services from strangers!! This comment (made like a parents warning to a child) sat uncomfortable with me until I experienced what they meant. In English discussing the menu in a restaurant a few days later the first approach was made, I was polite to the British women offering to show us several houses without knowing our budget or what we were looking for. Eager to get back to ordering our meal I foolishly gave her my mobile number. Oh, what a mistake, hard selling calls twice a day and her husband was a plumber who would solve all our future needs, finally I was not so polite. Remembering the warning given to us, I told her that we would use a registered estate agent; buying a house the same way as in England and the services of her husband were not required!!

Using websites to look at what property is available in the comfort of your home is a great way to “window shop” but knowledge of the area is essential, back to doing your homework. Independently from an agent, spend time travelling in the area visiting villages and towns (remember between 1 – 5pm and Sundays they are more sleepy than normal with shops shut and only restaurants and cafes open). Once you have found areas of preference use these locations to narrow down you new home. The cliché Location, Location may sound trite but the right house in the wrong area is impossible to solve. People have waited over a year for the right house in just one village!

If you are at the first stages of looking for a property, use websites giving information on the legal process, do check when they were last updated. Books on the subject tend to be out of date before they are in print, but are a good source about the cultural and social aspects of the area. Try the Consulate and tourist sites, also there are good magazine and forum sites in English.

New legislation – Notaries have been instructed by the tax authorities to ensure all foreigners purchasing or selling property do this using a NIE Number. No longer can you use your passport number for this transaction. Your agent should advise you on this subject.

Helen Rowe has successfully bought in Spain and in the process identified the many traps awaiting the unprepared. To improve the services to foreign buyers Helen joined forces with a registered Estate Agent 4 years ago. Helen designed and launched an English Language Real Estate website for Immobiliaria Rieres and is responsible for all overseas marketing and sales.

Buying a Property on the Costa Del Sol

If you are looking at buying a property on the Costa del Sol, please read the summary I have written. I hope that this will help you avoid many of the problems that people face and allow you to have a successful purchase. Please note this is a personal recommendation and should not substitute for professional legal and/or fiscal advice.

YOUR NEEDS

First and foremost you need a clear idea of what you need/want from the property. You need to think clearly about your situation and what the property is for. Is it a holiday home? Do you intend to live all year here all year round? What will you need from the property in 5 to 10 years?

Why do you need to ask yourself these questions? Well for example, if it is a holiday home that you intend to only use for several weeks a year, you might want to minimise your overheads. Or maybe you want to rent while not using it? Who will be your market?

I would recommend that you make a list of your wants and present them to the agency. I have included a few potential criteria that might be of importance.

What you and your family require from the property? Do you drive? Will younger members of the family be studying? Is any member of you family less physically mobile? This might not seem like pressing issues in the moment but you do not want to become the family taxi driver.

Why buy the property? Over the last few years many people have primarily bought as an investment. You need to think clearly about what you want. Is it to have a home to enjoy, a buy to let, property investment and so forth.

Additional costs Property on the Costa del Sol, like property anywhere does not simply take care of itself. Why costs will this property accrue. Community fees, garden/pool maintenance, etc

Is bigger better? How big does the property need to be? Do not buy on the assumption of visiting family, focus on what you want.

What sort of property are you looking for? Are you looking to be in an urbanisation out of town or would you rather be in the centre of town? Are you looking at an apartment, townhouse or villa? Be as specific or as open as possible to the choices. But these options will be reflect in the sales prices.

Where on the Costa del Sol? Where do you want to be on the Costa del Sol? Do you want the lifestyle of Marbella, the quiet peace of Mijas or the hustle and bustle of Fuengirola? You might have personal reasons for choosing a specific area (family, work and so on). If you have no preference tell us what you want and we will tell you why an area would work for you accessibility?

Do you need to be near the airport to travel back to your home country? Maybe train access is important as you do not drive or need to commute to Madrid?

Infrastructure Being in the centre of town, or right on the beach front will have advantages and disadvantages, as will being out in the countryside. Have a clear idea of what you want around you (schools, shops, hospital, etc…). Not only now but in the future as well.

Knowledge Now more than ever knowledge is power. You need to know about the area you intend to buy in. That is one of the reasons for this blog; our best clients have been the informed clients who know clearly what they want.

FINANCES

If you are serious about buying a property on the Costa del Sol, then it is worth looking into your finances from the start. Being prepared, especially if you are looking at applying for a mortgage, will only cost you some time and will allow you to have a clearer idea of what you can afford. It will also allow you to shop around to find the best mortgage wherever here in Spain or in your country of origin. It will also make you a more attractive vendor as the owner will have the certainty of completion. Leaving a mortgage to the last minute means you might land up with higher costs or dependent on exchange rate (in the case of a mortgage from the UK for example).

LEGAL COUNSEL

From the outset you should have a lawyer. If you do not have one the agent will be able to recommend one to you. Preferably you will want them to recommend several so that you can make a more informed choice. It is my recommendation that you never use an in-house lawyer supplied by an agency. These lawyers will be beholden to the estate agent and will be more likely to side with them in the case of a dispute. Remember they are reliant on that agency for business.

In many cases a buyer will use a gestor (administrative agent) for dealing with the legal aspects of the purchase. They are generally cheaper, but are not fully trained lawyers.

It should also be relatively easy to find a lawyer that speaks your native tongue.

LOOKING FOR YOU COSTA DEL SOL PROPERTY

First and foremost, if you are currently outside of Spain it is worth travelling to Spain by yourselves and not through an inspection trip or any other sort of subsidised travel. The agent will concentrate on showing properties that suit themselves and not you. Organise your own visit, inform us when it is convenient for you to see the properties and let the agency do its job. If we do not offer you the service you can walk away, an option not open to you during these subsidised tours.

DECISION TIME

Of course you want the ideal property, but remember it might not exist. Look at the pros and cons of each choice and make a firm decision. Your seriousness and decisiveness will send the right sort of message to the vendor. If you follow what has been mentioned above the vendor will see you commitment and will be more likely to accept your offer.

DUE DILIGENCE

Once you have chosen the property that is right for you, certain legal checks need to be made.

First you want to see a Nota Simple (registry report). This will confirm that the person selling is in fact the owner and will reveal if there are any debts or charges (mortgage) on the property

Then there are the title deeds. This will confirm what is legal on the property. Is that loft conversion reflected in the deeds (for example)? If it is an off-plan purchase you will want to see that all relevant permission is in place. If the property is quite recent is there a license of first occupation? If not, then it is more than likely that it is an illegal building, which can lead to a myriad of problems.

You will also want confirmation that all taxes (IBI) have been paid. Unpaid taxes are set against the property not the owner. You do not want to inherit the previous owners back taxes.

The same applies to water and electricity bills.

Again this also applies to community fees. These are costs set by the community to pay for general maintenance, gardens, pool, and other communal related issues

LEGAL FORMALITIES

On acceptance of your offer, a Reservation contract will be signed by both the buyer and the vendor. At this point a reservation deposit (between 3.000 and 6.000 euros) is set against the accepted offer. As the name implies this contract reserves the property for a set period of time, and if broken, normally means the forfeit of the deposit. Read the document carefully and add any special conditions that you see fit.

Unless the contract is to go to completion quick (less than a month) normally a private contract is written up. Normally a larger percentage of the total price is put down (example 10%). This offer protection to the vendor and the monies will be lost by the buyer if he or she pulls out. It also offers protection to the buyer as if the vendor pulls out; all monies must be refunded, plus a penalty charge.

COMPLETION

Completion takes place when both the buyer and vendor (or the lawyers) sign the public deeds in front of a notario (public notary). At this moment the vendor is paid in full and the keys are handed over. The property has now been handed over, but still needs to be registered. This will be handled by your lawyer. Prior to completion you or your lawyer will have applied for a NIE number. Costs of the transaction

Additionally to the price of the property, there will be taxes that need to be paid. This will work out to 10% of the price of the purchase. Although it can be slightly lower or higher. This includes 7% VAT/transfer tax, stamp duty, notary fees, registry fees, lawyer fees and mortgage costs. I hope this information has been helpful. If you have any further questions visit our Costa del Sol property website.

Property Rip-offs In Spain

These are testing times for Britons with property to sell in Spain. There is a glut of homes on the market, properties are taking longer than ever to sell, and prices in many popular areas appear to be stagnant or falling. Now, to cap it all, vendors are the target of a growing number of scams.

Desperate vendors make soft targets, which is why these scams are flourishing in the present market. The fact that many vendors are now advertising their properties themselves, using websites that bring buyers and sellers together, also facilitates the scams, by making it is easy for swindlers to contact a large number of vendors quickly and cheaply. Whatever else you might think of estate agents in Spain, they do offer their clients some protection from these scams.

There are two types of swindle being tried on vendors at the moment, both of which take advantage of the fact that under-the-table cash payments are still a regular feature of Spanish property transactions. These scams also appear to target people advertising expensive properties, as they are likely to have money.

The most common scam is known as a ‘rip deal’, a type of swindle that originated in France, but has now spread to Spain.

The genius of this scam lies in tricking vendors into handing over large amounts of cash, in a money-changing operation that hides the sting. It works like this: People posing as buyers contact you pretending to be keen to buy quickly, without viewing, no questions asked. They give you some spiel about having to pay the reserve deposit in cash, normally dollars or Swiss francs, which they argue you can easily change at the bank. And as you’ll be changing the deposit anyway, they ask you if you don’t mind changing a further amount for them, say 100,000 Euros worth, in return for a hefty commission. The next step is a meeting in a swanky hotel somewhere like Barcelona or Milan to do the deal. You will return home with a bag full of worthless counterfeit notes.

Ian Ainsworth, 37, from Bolton, has been contacted 3 times about a family property in Sotogrande he is advertising for sale. “One time it was a Nigerian calling me on a French mobile, but most recently it was someone from North Africa on an Italian mobile,” explains Ainsworth, who lives in San Luca de Barrameda, on the Costa de la Luz. “Every time they want to buy without viewing, which is an obvious sign of trouble, and always ask if you will be willing to accept a large amount in cash. Last time I played along with it for a while, until they asked me to go to Monaco at my own expense.”

A rip deal doesn’t always involve foreign currency. Sometimes the vendor is asked to change 500-Euro notes into smaller denominations, but once again the 500-Euro notes turn out to be counterfeit. 500-Euro notes are known in Spain as ‘Bin Ladens’, because when the Euro was first introduced everyone knew they existed but nobody had actually seen one. Now, due to corruption and tax evasion in the Spanish real estate sector, there are more Bin Ladens in Spain than anywhere. They are ideal Marbella-style backhanders and under the table payments.

If the rip deal uses a property transaction as bait to ensnare vendors in a money-changing swindle, at least its victims still have a property at the end of it. Not so with the other scam vendors now need to watch out for, which aims to get property on the cheap, using under-the-table cash payments – known in Spain as ‘B’ money – that turn out to be counterfeit.

Traditionally, ‘B’ money is handed over in the notary’s office, once the deeds have been signed, and the notary has left the room. But how many people can spot a counterfeit 500-Euro note if the forgery is good? And even if they can, what good will it do? The deeds have already been signed, and calling the police only lands you in trouble with the tax authorities. You used to be able to count on ‘B’ money payments, but a new breed of swindlers is changing the rules of the game.

Vince Barnes, 42, a professional musician from Newcastle upon Tyne, who has 2 properties for sale on the Costa Blanca, was recently contacted by someone from the Ivory Coast. “After the initial contact, he came down from France to view my properties, and then offered to buy them both. The total price is 480,000 Euros, which he didn’t question, but he wanted to pay 160,000 Euros in cash, and only declare 66% of the value on the deeds. The cash would be in 500-Euro notes, but he also explained he had to improve the colour of the notes, and remove some serial numbers, all the while claiming they were perfectly legal. I think he took me for a idiot.”

One hapless German expat on the Costa Blanca was recently the victim of a double scam. He handed over 400,000 Euros in return for counterfeit currency, but also signed a legally binding contract, meaning he had to sell his property for 400,000 Euros less than he wanted, or hand over another 800,000 Euros in compensation to the people who had swindled him. He couldn’t very well go to the police, as that would land him in trouble with the law for money laundering and tax evasion.

Nobody knows how many people have fallen for these scams, because victims have a powerful incentive to keep quiet. Last year the police in Barcelona announced they had uncovered 16 rip deals, carried out by gangs from Eastern Europe, with a total value of 3 million Euros. One has to assume that the police only know about the tip of the iceberg. And it is my impression that many British owners who are advertising their Spanish properties for sale online are being contacted by swindlers posing as buyers.

If you are trying to sell a property in Spain, or anywhere else in Europe for that matter, how do you continue to attract potential buyers without falling for one of these scams? The answer is simple: make it clear from the outset that you will not accept any cash payments, whatever the currency, and no matter what yarn a buyer might spin about needing to pay with cash. And remember, if it sounds too good to be true, it almost certainly is.

An Investors Guide To Buying Real Estate in Greece

Greece has traditionally been a popular holiday destination but with relatively low interest in property investments. This situation is changing with recent interest from its European neighbors.The recent focus on Greece after the 2004 Olympics evoked worldwide interest thus pushing up tourism and demand for housing. With its serene coast line, affordable cost of living, an enviable history and culture, Greece is an enticing place to invest. The renewed interest in tourism has also brought with it a rising need for rental. The best part is that compared to its popular European neighbors like Spain, Portugal and France it is a better investment destination.

An overview of the property market

With an undervalued property market there could not be a better time to invest into Greece and it gets better depending on the choice of location which can give returns up to 20-25%. Wide arrays of properties are available but the ones on the main islands like Crete, Corfu and Rhodes are dearer. Choices are available between beautiful Greek traditional houses and modern suites though the location and condition of houses determine the price. Two bedroom apartments are priced from EUR89,000 to EUR355,000 and a three bed room house will cost between EUR148,000 and EUR503,000. Cheaper investments are possible if renovations can be undertaken.

Sellers Market

It is possible to drive a bargain and pick up older properties for cheaper rates but be prepared to spend a lot on repairs which can sometimes turn a nightmare. Depleted buildings with damages to sanitary lines and reconnecting electric supply could turn out more expensive than investing int a new apartment. When it comes to selling a property in Greece location is high on priority. Though it is difficult to get a property in the islands, it is easier to sell off.

Popular Locations in Greece

Mainland Greece is preferred by east Europeans and Scandinavians but the English favor investing in the islands. Crete with its rich history and tranquil landscape is most sought after location by holidaymakers but its calmness and scenic beauty is the reason why retired Europeans prefer it. The majority of property is owned by British investors and with rising rental potential, property rates have shot up by 6-10%. The mild and beautiful Peloponnese peninsula is ideal for investors a milder investment. A strong history and with a projected positive appreciation rate, prices have shot up by more than 20%. It is also attracting international interest.Greece has strong laws to protect and regulate their coastline which has resulted in kept them unexploited in spite of all the development.Air connectivity to the islands is good and getting better with flights from UK to all major islands like Crete, Rhodes and Corfu. There are direct flights from Manchester to Heraklion and also from Gatwick to Rhodes. GB airlines flights five flights from Gatwick to Heraklion.

The larger islands have well developed rental markets.The island of Peloponnese is cut off from the mainland by the canal of Corinth. This isolation is offset by other transportation channels like a motorway, railway link and the Kalamata airport. The island is dotted with sandy beaches and rugged mountains and offers warm winters and pleasant summers. Peloponnese is home to the famous Olympia, Epidaurus and Mycenae. The English are the largest group of investors as connectivity from Gatwick, Birmingham and Manchester to Kalmata is strong with the travel time less than 4 hrs. Older properties which can be purchased from Euro 45000, the range includes stone cottages, traditionally architected houses and villas.

Property Purchase

A lawyer with understanding and experience with Greek property procedures is recommended. Good English is an added benefit.

The purchase process

The process starts with agreeing on a price agreement and sealing it with a 10% advance followed by a pre-contract agreement signed by both parties. After all information gathering is completed the final deed of sale is signed in the front of a public notary. After paying the balance amount the owner can be transferred by registration.

Fees and Costs

Compared to other nations the tax for purchasing and registering in Greece is on the higher side. 13-15 percent of the cost of property would be paid as taxes which include transfer tax for resales, municipal tax to the local authorities, legal fees to lawyers and notaries and property registration. New buildings are charged 19 percent as Value Added Tax.

Financing

There are usually three options when it comes to financing a property. Cash, new Mortgages and re mortgaging an existing property are options for financing. Although cash is the easiest option, it is not always affordable. Mortgages for the property can be arranged by a Greek or UK lender. Giving up equity in a UK/Irish property can help purchase the Greek property in cash and thus make it an easy option. Greece has the highest interest rates as compared to its European neighbors. Lending is conservative and applicants have to furnish proof of income and rental projections are usually not considered.

Taxes in Greece

It is recommended that buyers get some taxation advice as Greek regulations are complex. Non residents may also fall into the bracket of income, wealth, inheritance and gift taxes. Since the UK/Ireland has a double taxation treaty with Greece you can be assured to escape paying tax in both countries. Acquiring a fiscal number, called the AFM is necessary to involve in any financial exchanges like property transactions, buying a vehicle or working in Greece. Holders of AFM have to file yearly tax returns irrespective of income.

Property Taxation Guidelines

To reduce speculation the Greek agencies have implemented Capital Gains tax which applies to property bought after 1st January 2006. The motive being to impose penalty on those looking for quick profit by levying it in inverse to the length of time the property is owned. The other tax for property holders is the wealth tax which is between 0.3 and 0.8 percent of the property value. Wealth tax is only levied on properties with valuation more than Euro 243,600.Apart from wealth and capital gains the others are local taxes. They take the form of direct and indirect taxes charged between .25 to .35 percent of the propertys official valuation.

Greek Economy

Greece trades chiefly with EU nations like Germany, Italy, France and also the USA in tourism, shipping, food, tobacco, textiles, mining and petroleum products. The sector growing rapidly is the service sector. Greek GDP annual growth was touching 4 percent during 2003-2005 periods which is above the European Union average and it has been performing uniformly. The introduction of reforms and funding from European Union are the top reasons for this consistent growth. The government has been working towards strengthening the labor and pension mechanism to arrest the growing unemployment, inflation and national debt.

Communications within Greece

Fixed and Mobile Telephone

The telephone market was controlled solely by the state through the Organismos Tilepikoinonion Ellados (OTE) until the markets opened up in 2002. Over the years OTE has lost market share but still controls a major chunk of the market. Though other players are coming in OTE still has a major in basic infrastructure like phone lines. Mobile phone use is substantial and pay-as-you-use cards are available at common stores but a contract phone card is only available by producing a Fiscal Number. Payphones are available in plenty.

Internet Usage

With the introduction of ADSL and Broadband, which are faster internet connections, internet use is quite popular. Larger towns and urban areas have access to high speed whereas dial-up and ISDN are readily available.

Postal

Letters, which are posted in mainland Greece, may take three days to a week to reach other European countries. The islands take longer or lesser based on their connectivity.

Investing into a property in a different country is a big decision and would require adequate research and many visits. Planning a budget and working by is advisable. It is smart to keep exit options available by studying the sellers market as property prices and situations dont remain constant. Professional opinion from a local lawyer or property consultant would be the best way to approach it. Factors like property valuation, rentals and growth potential are areas of expertise and it is best to hire the services of a proven consultant . A good understanding of the regulations for each country is also crucial before signing any purchase agreement. Be extra careful if it is a partnership or long term deal.

What is an Apostille and How to Get One in Los Angeles, California

What is an Apostille?

In short, an Apostille authenticates the signature of a public official on a document that is intended for use outside of the United States of America. An Apostille does not bear witness to the authenticity of the actual contents of the document, but rather to the authenticity of the signature of the official who signed the document and the authority in which that official acted. In essence, an Apostille is an extra step of precaution that is taken in order to ensure the integrity of the identity of the signatory and the officials certifying his or her identity.

For example, you have in your possession a document, such as a Power of Attorney, that has been issued by your company for use in an international document signing transaction. In order to obtain an Apostille for this particular document, you must first seek out a notary public who will verify your identity as the signatory and seal the document with an official notarial certificate and the stamp that was issued by the Secretary of State. Then, you must submit the officially notarized document to the County Clerk or Recorder to substantiate the fact that the notary public who verified your identity as the signatory is appropriately commissioned and in good standing with the state. Once this step is completed, you must submit the duly certified document to the Secretary of State in order to authenticate the signature of the County Clerk or Recorder. When all of these conditions are met, the Secretary of State will affix an Apostille to your original notarized document, thereby legalizing it for use in foreign countries. Again, the Apostille does not authenticate the contents of the document, but rather the integrity of the identity of the signatory and the officials certifying his or her identity.

What types of documents require an Apostille?

The following are common types of documents that ordinarily require an Apostille for use in another country:

• · Birth Certificates
• · Marriage Licenses
• · Death Certificates
• · Power of Attorney
• · Background Check
• · Papers for Adoption Purposes
• · Certificates of Non-Marital Status
• · Mortgage Loan and Real Estate Documents
• · School Records, such as Diplomas and Transcripts
• · Corporate Documents, such as Articles of Incorporation, Certificate of Good Standing, Bylaws, Mergers, Amendments, etc.

History of the Apostille – The Hague ConventionThe Apostille was established in 1961 by the Hague Convention Abolishing the Requirement for Legalization of Foreign Public Documents. At this conference, a number of countries gathered together to create a simple procedure for legalizing documents and agreed to recognize the Apostille as the method of authenticating foreign documents. Today, the Apostille is used for certifying foreign documents and is valid in countries that are in compliance with the provisions of the Hague Convention.

The nations involved in the Hague Convention are listed on the following website:

http://www.hcch.net/index_en.php?act=conventions.status&cid=41

Apostille vs. Certificate

Put simply, member nations of the Hague Convention only require an Apostille. Non-member nations require further signature verification by means of a Certificate and possible authentication by the United States Department of State.

How do I obtain an Apostille in Los Angeles?

There are two ways of obtaining an Apostille in Los Angeles. You can follow the steps on your own or you can hire a mobile service to take care of the entire process for you. Getting an Apostille can be a daunting and complicated process, especially if you are not used to working within the parameters of what is required, but it can be done.

If you want to obtain an Apostille in Los Angeles on your own, you will need to contact the office of the California Secretary of State and ask what steps are required for the particular document you have in your hand. This may take quite some time on hold. You will also spend time on the phone as the employees advise you of the steps you need to take in order to complete the process successfully. The requirements vary by document. Once you have discerned what steps you need to take, you will spend most of the day following and fulfilling them. As long as you follow the steps correctly, it can, however, be done. It will simply take time and effort on your part. Whether you have that time or not is up to you.

For example, if you want to obtain an Apostille on a Power of Attorney document in Los Angeles, you need to contact a local notary and ask them to notarize your signature on the document. You can find a local notary on Yelp! or Google. Then, you need to take the notarized document to the County Clerk’s office in Norwalk, wait in line, and ask the County Clerk to verify that the notary who notarized your document is commissioned and in good standing with the State of California. The County Clerk’s office is located at 12400 Imperial Highway, Norwalk, CA 90650. You can reach them at (800) 815-2666. After that, you need to take the notarized, certified document to the California Secretary of State office in Los Angeles, wait in line, and ask one of the state employees to affix an Apostille. The California Secretary of State office is located at 300 South Spring Street, Los Angeles, CA 90013-1260. You can reach them at (213) 897-3062.

As you can see, obtaining an Apostille is a daunting and complicated process. The steps listed in the example above are guidelines for one type of document. Each type of document carries with it a different set of rules. If you do not want or need to become an expert in the Apostille process and what it entails for each type of document and, if you do not have an extravagant amount of time to spend driving around Los Angeles in order to meet the various requirements that need to be met before the California Secretary of State office in Los Angeles will affix an Apostille to your document, it is more cost-effective, time saving, and better all around to contact a reputable and professional mobile Apostille and notary service in Los Angeles. You can find reviews on Yelp! and Google that will assist you in selecting the best service for your needs.

 

A Property Tax Loan is a Great Solution

Texas has some of the highest property tax rates in the country and, in a state where property values have held despite the recession, this can cause a problem for many homeowners. Property owners in Texas should be aware that property tax loans can help, even before delinquencies, penalties and foreclosures have been assessed.

A tax loan consolidates the delinquent taxes, penalties, and interest on the debt into a loan with affordable monthly payments. The tax loan lender is the recipient of a tax lien, in security for the loan.

Loans are available for nearly every type of property as long as there is no IRS lien or bankruptcy against the property, and it is well maintained. These types of property tax loans are available for residential, commercial, investment property, and vacant land.

Your credit history is usually not an issue, as you are securing the loan by tax lien. Some employment verification is necessary for a property tax loan.

The closing can happen in less than a week from the date of application. Application can be made on the phone or on-line and a mobile notary will come to close on the property at a point of convenience to the borrower.

A property tax loan can keep you from losing your home or real estate property in foreclosure and save you thousands of dollars in penalties and interest, which can accrue as high as 37% to 44% per year in Texas.

You should always choose an experienced lender to work through your property tax loan. Such lenders must be licensed by the state of Texas through the office of the Consumer Credit Commissioner. Always ask lenders for a referral from borrowers with whom they have done business. Also ask them for any accreditation or affiliations with organizations like the Chamber of Commerce or Better Business Bureau.

Even though a property tax loan is a very good way to avoid foreclosure and extended debt from penalties and interest on delinquent property tax, it is not something that you should just jump into without thorough research. Make sure that the lender with whom you intend to do business is reputable and that the monthly payments you will be making are well within your ability to afford.

If you do your due diligence, you may find that a property tax loan is a great solution to a pressing and potentially defeating financial problem.

A Guide to Financing a Home For the First Time

If you are buying a home for the first time. It is imperative to know several important aspects of the process. The glossary of loan terms is one thing that you should familiarize yourself with. However here are the 5 areas that can be critical. Being aware of these will help you avoid costly mistakes.

The Loan Programs are fewer than just a few years ago, however they are financially more sound. Plan to have at least 3.5% for FHA. It can be gifted from a family or family-type member. Non-Profit agencies may provide gift funds. Generally 10-20% is preferred. A 20% down payment will avoid mortgage insurance which can be .75% of the loan amount monthly.

Real Estate agents will want to know that your are pre-qualified. This entails a look at your income, assets and credit history. It is a prime indicator of your sales price limit, ability to repay the loan and your probability of paying back the loan. In this step, your monthly payment is determined based on the current interest rates. Your credit score will also determine the rate.

A score of 700 or higher earns you the best rates. Financial experts recommend around 25% of your income as a mortgage payment. A debt ratio of 38% or higher becomes a concern with regards to affordability. Your assets will be verified to confirm down payment, closing costs are in the bank and for how long. You may need 2-6 months of payment reserves to allow a cushion depending on loan product.

The Good Faith Estimate is considered the sticker price of doing your home loan. The lender fees, Title and Escrow fees, and possibly prepaid tax and insurance, if impound account is used, will be detailed on this form. It also will illustrate the rate, monthly payment and loan program used. Be sure to ask for this if not offered up front. It will be your cost guide going forward throughout the process.

The Process is facilitated by your realtor and home loan consultant. Starting with the prequalification for your target price range, you then are ready to make an offer after working with your local realtor for appropriate homes in your range and features you desire. It is normal to ask for the Seller to pay 3-6% of the closing costs. Next, your offer gets accepted by the seller! Now the work begins with home inspection, appraisal, formal loan approval and finalizing conditions from the underwriter.

The Closing is what is considered drawing loan documents for signing the deed of trust, the note, and all disclosures in title. In some cases a mobile notary may be used. Finally your loan should be ready to fund and record. Now the house is yours!

Good communication and experienced professionals go a long way to making the home buying experience a great one. Be selective in who you choose to handle one of the biggest financial transactions in your life. I love working with First Time Home Buyers. As a teacher, I like to take the extra time to explain and answer all their questions. I can empathize with their fears and concerns about the many options available. Take time to choose your realtor and mortgage professional. Also be willing to learn about the process and take control of what you can control.