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SW Greece
A tourist guide to the SW Peloponese, Messinia, where we presently live in the summer. Detailed travel information for visitors to the area.
Houses for Sale
Two
houses for sale in Finikounda
Big house
New Villa
Copyright
Jim Baerselman.
Updated regularly
Last update - 30 Jul 2009
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us with your corrections and comments
Buying Property in Greece?
It's very easy for EU citizens to buy property in Greece, and, compared to UK, good value for money. This guide helps you consider where, what size and what build stage to think about.
After that, we give a rough guide to prices (2009, SW Peloponese), a description of the buying process (which is very easy, especially if you have an estate agent to help you) and a list of transaction costs.
Quick jumps on this page:
| Where | What Size | Quality | What Build stage | The Buying Process | Transaction Costs | Prices |
| Estate Agents |
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Where?
Consider first whether you or your visitors
wish to be within walking distance of shops, bars, restaurants or the beach, or
whether you’re prepared to use a car for all shopping and entertainment. Inland
or remote sites are cheaper, and often offer splendid views, but check the
distance and quality of track to the nearest tarmac.
The main settlements in the area between Methoni and Finikounda are marked on the accompanying map (as are the good beaches and anchorages!).
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Size and Quality
Plot Size
4,000 m² is about one acre, and on a plot of land this size (if it’s not in a defined forest area) you can automatically obtain permission to build - for a house up to 200 sq m in area. Close to some settlements, a 2,000 square metres plot is enough. Within a settlement, building is possible on any plot - with house size depending on plot size. Within these broad guidelines there are minor 'ifs' and 'buts'; your definitive source of information will be a building engineer - more like an architect in UK speak.
House Size and Design
House size is generally defined in square metres (m²) - a great system. Wish we did it in UK.
Living Area in square metres is the key measure, derived by taking the external dimensions of each floor of the building which encloses bedrooms, living rooms, kitchens, bathrooms and halls, then subtracting the stairwells from this amount. As a (very) rough guide the equivalents are:
40 m² - a single bedroom holiday flat or spacious studio.
60 m² - a small town flat with two bedrooms.
75 m² - a two-bedroom bungalow, probably with two bathrooms and a utility area.
120 m² - a house with three double bedrooms and a generous living area.
150 m² plus - luxury!
Verandas, Terraces and Balconies. These are not included in the above house measurements, but extend your summer living area very effectively and cheaply.
Basements. Many houses have a basement whose size may depend on the slope the house is built on. On level ground it may be as big as the whole house footprint. Typically, a basement will be finished in bare brick or rough cement and will not have windows. It will be used as a garage, a store, a utility area or whatever. However, converting part of the basement to an apartment is often possible. Old stone houses are unlikely to have basements.
House Quality
New houses are built earthquake resistant, and well insulated. External shutters mean that windows open inwards. Aluminium framed double-glazing is normal, and discreet fly screens are often included. Wiring provision for television, telephones and alarms is normal. Sealed cess pits are usual, and will require emptying after about 3 months occupancy (€200 a go).
Stone finish adds to costs, as do open fireplaces. Biological sewage treatment adds about €8,000 to the cost, uses a little water and electricity, and provides water for the garden. Good value. More frequent sewage cleaning will be needed for all systems if you throw paper down the toilet; usual practice is to dispose paper separately.
New house prices are usually quoted without kitchens, white goods or wardrobes. Other possible additions are solar water heating, air conditioning or a furnace for central heating. A sensible allowance to add all these elements for a 100sqm house is around €20,000, but obviously varies 30% depending on DIY and quality.
Second hand houses will not have all of these fitting out costs, but the fittings and selections may not be to your taste!
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What Build Stage?
Finished Houses
If available, a finished house, ancient or modern, can be yours in a very short time – at slowest, within a month or two. The demand for finished houses is high, especially close to the sea or a village, and prices reflect this.
Houses ‘Off Plan’
A developer has bought the plot, gained permission to build, and he’s waiting for your finance. The house may be part built. It will take time to complete the house (about a year starting from scratch) with some uncertainty about the completion date. The price agreed would be the price you pay, and the house will be relatively good value for money.
Houses for Renovation
Houses for renovation are often close to a small settlement or village, and offer lots of local charm. But working out the time and money for renovation is a project in its own right. Excellent value for money is possible, but uncertainty and a long wait are also likely. Great hobby though. Retire, buy a caravan and get on with it.
Build Your Own
Buy a plot with or without building permission. If without permission, first check it's not forestry land and that the size and position are such that you will get permission. A building engineer (Greek architect equivalent) will do this for you. He'll also design and supervise build for you. Allow one to one and a half years to completion, though with your close supervision it can be quicker.
Building costs for a concrete house (ready to move into, with a rough finished basement but without white goods and your fittings) will be from €1200 to €1400 per m² of living area, €700 to €900 for rough finished basement or garage area. Then add the costs for driveways, fencing and gardens.
Steel or wood framed pre-fabricated houses are cheaper, and can be erected within 3 to 6 months.
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The Buying Process
Overview
You’ve chosen your plot or house, and agreed a price. Complete the next three steps (can be done in one week), and after that the property should be yours within a few days. If you are buying through an estate agent, he will oversee and arrange the whole process for you.
It is also possible to sign an 'agreement to buy' and pay a deposit of 10% while you complete the preparations. This agreement sets out terms of the sale, including a completion date and price. If you (as buyer) back out, you lose your deposit. If the seller backs out, your deposit is repaid and the seller pays you, as compensation, the same amount as your deposit.
Step 1: Appoint a Lawyer
A local accountant or Government advice office can give you a list of suitable lawyers. Your lawyer will check that the vendor(s) have clean title to the property. That is, it is free of mortgages and legal constraints, the vendor(s) are the sole owners and have paid all taxes to date, appropriate building permissions have been given and it’s not on public land. He will also act on your behalf to pay local taxes, register the property deeds with the land registry and negotiate an ‘assessed value’ or ‘objective value’ for the property (a bit like the rateable value in UK, some 40% to 80% of the actual value). He will attend on the day the purchase is completed.
Step 2: Open a Greek Bank Account
You’ll pay in Euros, usually with a bank draft, and you’ll need cash for transaction fees and tax. It’s convenient to open an account with a bank that has a branch near your Greek property. Buying euros may best be done through specialist currency brokers, since their fees and exchange rates are sometimes more favourable than those of high street banks for larger sums. If so, open an account with a broker in UK.
Step 3: Register for Tax in Greece
You must pay purchase tax before completion day. To pay tax you must apply for a tax registration number. This can be arranged for you. The tax authorities will later require proof that money for the purchase has already been taxed. Your Greek bank will provide ‘pink slips’ (kokkino) showing that the money has been imported, which will suffice. Consider appointing a local accountant to handle your tax return.
Completion Day!
On completion day you (or someone with power of attorney for you) will collect money and banker's drafts from the bank, and go to the local notary's office. There you'll sit around a table for a couple of hours with your lawyer, the vendor and his lawyer and the notary. If you don’t speak Greek, a small fee must be paid for a translator. If you've used an estate agent, he'll be there too - to oil the wheels and collect his fee!
The notary will fill in the blanks on standard contract form. The contract is then signed by all concerned, money and banker's drafts change hands, and the property is yours (perhaps with a slightly later date of occupation to be agreed if the previous owner has to remove his stuff). Sundry fees are paid to all present. See below.
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Transaction Costs
Overall
Overall transaction cost for buying property in Greece is between 10% and 16% of the sum the seller will receive. The amount varies partly by price, and partly due to the differences between the objective value (sometimes called assessed value, a similar concept to the UK rateable value) of the property and the actual price. The buyer pays all these costs.
Contract Costs
Purchase tax is 9% on the first €15,000 of the contract value (usually the assessed value, see above) and 11% to 13% on the remainder. The notary will charge 2% of the contract value for his fee. Your lawyer’s fee is more variable, depending what additional responsibilities he has (power of attorney etc) but will not exceed 1.5%.
Actual Price Costs
Estate agency fees are calculated at 3% to 4% plus VAT on the price received by the seller. The agent usually also deducts 3% to 4% from the amount paid to the seller, who therefore has a strong incentive to sell at a discount to a direct buyer. Agency services are usually far more comprehensive than those of equivalent agents in UK, and they are also responsible in Greek law for their actions on your behalf, so don't begrudge those extra costs too much!
Sundry Expenses
Make allowances for translator’s costs (€65?), new topographical plans if needed (€300?) and any post contract work needed (setting up utility contracts on your behalf).
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Prices
Prices change so quickly that perhaps it's foolish to comment except about the area I know (SW Peloponese), and for mid 2009. Please take these prices with a big pinch of salt, and check for yourself. Exchange rate, €1.15 to the £1 plus or minus 3 cents.
Plots
Buildable country plots with no outstanding features (no view, a long way from roads, water and electricity) start at about €30,000, increasing to €80,000 as these snags are removed. Go close to the sea and a village, add a view, and the price may reach €140,000.
Houses
Nice, 90m² houses for which you need a car to reach any amenities start at about €160,000; add €30,000 for a good view, and a further €30,000 if you can walk to the village and the sea. There are some splendid larger houses available, mostly with lovely views, from about €250,000 upwards.
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Estate Agents
We have direct experience of only two estate agents in the area. There are three of four more based on Finikounda, Pylos and Methoni, with yet others further afield in Messinia. It's a growing trade. Those we know well are:
Theasis - www.theasisproperties.gr/ run by Dimitri Dionysopoulos, who speaks excellent English. He managed the purchase of two plots next door to us in Anemomilos, and helped us with the process of obtaining planning permission.
Greco - www.greco-properties.com/index_e.php run by Thomas Ertl, a German, who speaks good English. He managed the purchase of our house described elsewhere on this site.
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