Money saving tips for Greek properties

Property in Greece is not generally expensive – not by Mediterranean or even by international standards. Look at any property portal for Greece and you can see properties from €50,000 right up to €5m and beyond.

If your budget is closer to the former, how can you get the best Greek property for your money?

In an unfamiliar market, language, currency and legal system it is all too easy to end up paying more than you need to. So, here are some tips and tricks for paying a fair price and saving money.

Can you save money on buying costs?

Set aside an additional 10% of the property price to cover the costs of buying. Some unavoidable fees include (as of 2024-25) transfer tax at 3.09%, notary fees at around 2% and land registry fees at 0.5%. If you are purchasing a new-build property your developer can apply for an exemption of 24% VAT and instead you will have to pay transfer tax at 3.09%.

You may be tempted to cut costs by finding a property yourself or using your Greek to go through legal documents, shunning the need for an estate agent or lawyer. However, this could cost you more later down the line. Typically, your estate agent will charge 2% to 4% of the purchase price, but split between buyer and seller. Your lawyer will charge up to 2%.

Savings on Greek property

Buying a lower priced property will obviously save you money on the property purchase and the taxes and fees linked to it.

If you are after an island home on a budget, then steer clear of sought-after holiday destinations like Mykonos and Santorini, and instead opt for lesser-known ones, like the eastern Aegean islands. Not only will you get much more for your budget, but you can also enjoy a more traditional Greek lifestyle.

Buying off-plan can also be cheaper, given the downside of having to wait some time before you can move in.

Across Greece, you’ll be able to find cheap fixer-uppers, but you’ll want to balance this with the cost of renovating before you buy.

What can you bear to live without or doesn’t bother you? For example, if you don’t mind a bit of a walk (or a short drive) to the beach, you can cut costs by searching inland. If you are retiring to Greece full time, you may not need to be super close to the airport. Such compromises should all help to keep costs down.

Negotiation strategies for property prices

When you’re ready to buy a property in Greece, there are several strategies you can use to negotiate a better price. Haggling might not come naturally to everyone, but considering the significant sums involved in property transactions, it’s perhaps worth stepping out of your comfort zone.

Negotiating effectively starts with being well-informed. Make sure your offers and counteroffers are backed by solid evidence. In Greece, you can find broad price records for different regions through property portals, local government data, and organisations like the Hellenic Association of Realtors.

Plus, in the digital age, it’s easy to gather detailed information about local prices. Use property portals to filter listings by features like the number of bedrooms and features like a sea view and compare similar properties.

You could also focus on areas where locals are likely to buy to avoid paying a premium as an international buyer. Keep in mind that properties near popular amenities or tourist attractions may come at a higher price.

Estate agents might not always be impartial since their fees are based on the selling price. Consider consulting other property professionals like surveyors and property lawyers for unbiased opinions.

Understand whether it’s a buyer’s or seller’s market. Use available data on sales volumes and time to sell to gauge the market. In a buyer’s market, you’ll have more leverage, so knowing the broader market trends can boost your confidence in negotiations.

Armed with this knowledge, you’ll be better equipped to determine if a price is fair or if the seller is being overly optimistic. Remember, some markets may tend to overprice properties for foreign buyers.

Timing considerations for property purchases

When considering the timing for purchasing property in Greece, there are a few strategic points to keep in mind. While there’s no definitive evidence that certain times of the year are cheaper, some common-sense observations can guide you.

• Seasonal Trends: Holiday homes might be more affordable at the end of the tourist season. Owners facing several months of maintenance costs without rental income may be eager to sell quickly.
• Retiree properties: Properties popular with retirees could be less expensive in the spring. This is when retirees, particularly from colder climates, might decide to sell after spending the winter in Greece. Understanding the seller’s motivation can be a powerful tool in negotiations.
• Off-Peak months: From November to January, there tends to be less competition among buyers. Sellers listing during these months may be more motivated to sell quickly, offering you more room to negotiate on price.

One thing to bear in mind when you’re home hunting in the off-season is that the buying process may be trickier, as some areas (particularly the islands) do not have direct international flights after early autumn.

By keeping these timing considerations in mind, you can better navigate the property market in Greece and potentially secure a better deal.

Currency transfers

Currencies fluctuate daily in value against each other. While the price agreed upon with the vendor remains constant throughout the buying process, the amount you’ll pay in your local currency can vary significantly. Factors such as global events, trade, and politics can all influence the exchange rate between your local currency and euros.

Banks typically don’t offer the same advanced financial products for transferring large sums as currency transfer specialists do. A forward contract allows you to lock in an exchange rate, ensuring you know exactly what you’ll be paying. Although the exchange rate could potentially move in your favour, is it worth the risk? If it doesn’t, and you can no longer afford the property, the money spent on viewing trips, surveys, and other costs will be wasted if the deal falls through. Using the right transfer product can save you money.