Safe As Houses?

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Clio
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Safe As Houses?

Postby Clio » Fri Apr 28, 2017 9:00 pm


Jeffstclair
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Re: Safe As Houses?

Postby Jeffstclair » Fri Apr 28, 2017 9:51 pm

Yeah it's quite clear a house in Crete is a house to live in and enjoy ... not a money making investment ... great..... relax ....

filippos
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Re: Safe As Houses?

Postby filippos » Fri Apr 28, 2017 10:09 pm

I agree, Jeff. I've never understood or considered a home as an investment. True, I've some profit over the years on the back of inflation and improvements (and inflation gains aren't real as everything else has risen) but I've never bought with the aim of making a profit but rather because the property has been right for the family at the time.

Kilkis
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Re: Safe As Houses?

Postby Kilkis » Sat Apr 29, 2017 1:58 am

I think you are missing the thrust of the article, Jeff and Filippos, possibly because they use the word "investing". It is mostly about how cost and other factors affect demand. Sterling falling against the Euro increases the cost of a property for UK buyers so some who could afford it now can't. Uncertainty about the terms of Brexit increases fear about whether a UK buyer would be able to remain in a country, either because they are refused the right to stay or because removal of healthcare makes it impractical, and that decreases demand. Finally, in the case of Greece, the possibility of an exit from the Euro means that whatever you do spend may become worthless if you are forced sell up and leave and that reduces demand. Those are nothing to do with whether you are going to make a profit. If you replace the word "investing" with "spending their savings on" then the article makes perfect sense to me and I agree with you that I have never regarded my home as a means of making a profit. Typically you only make that profit when you are pushing up the daisies and then you don't care. Also most of the "profit" is not real. If the government withdrew all tape measures and replaced them with ones where the scale was halved, i.e. 1 inch was half the size it is now, and you used the new tape to measure your house it would appear to be twice as big. Has it really got any bigger? Could you fit more stuff inside it?

Warwick

filippos
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Re: Safe As Houses?

Postby filippos » Sat Apr 29, 2017 9:36 am

Yes, Warwick, I did understand the thrust of the article but I was simply responding to Jeff's comment. Are you bored or insomniac?

mouche
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Re: Safe As Houses?

Postby mouche » Sat Apr 29, 2017 10:11 am

So builiding equity by owning makes no sence and much better to rent and see the cost of rent go up every year? Good luck!

Kilkis
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Re: Safe As Houses?

Postby Kilkis » Sat Apr 29, 2017 10:35 am

mouche wrote:So builiding equity by owning makes no sence and much better to rent and see the cost of rent go up every year? Good luck!


Can you point out where anybody said that? Again you are not reading what people post just inventing your own version of it and then responding to that version.

Warwick

BST
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Re: Safe As Houses?

Postby BST » Sat Apr 29, 2017 11:02 am

Whether people have bought here to enjoy Crete life or hoping to make a profit is not the concern. IF there is a need to return to the UK for whatever reason, it appears more and more unlikely that you will be able to sell a house. Even if you have another property in the UK and could manage financially, it would be upsetting and annoying to have to abandon your house in Crete because of Brexit or Grexit.

Kilkis
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Re: Safe As Houses?

Postby Kilkis » Sat Apr 29, 2017 12:11 pm

There's no such thing as a bad market, BST, just bad pricing. For example the article is saying that one reason Brits aren't buying is because Sterling has dropped 20 % against the Euro. Drop the price of the house 20 % and they could afford to buy it again. Drop it 50 % and the Greeks might start to take an interest. Not nice but reality.

Warwick

peebee
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Re: Safe As Houses?

Postby peebee » Sat Apr 29, 2017 2:23 pm

mouche wrote:So builiding equity by owning makes no sence and much better to rent and see the cost of rent go up every year? Good luck!

We rent long term and signed up for 2 years initially. When it came to renewal (5 years ago) the rent dropped by €50 a month, and has remained the same since.

Kathleen
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Re: Safe As Houses?

Postby Kathleen » Sat Apr 29, 2017 3:04 pm

I doubt that any of us who have second homes in Crete and still maintain UK residences would 'abandon' them in the event of not being able to sell.

As Jeff said, mine was bought (off plan in 2004) to live in and enjoy, it has provided so much pleasure to myself and close family over the years. It will be handed over to them to enjoy in the event I am unfit to use it myself and be found to be unsaleable........ it goes to them anyway, in the event I still own it, as and when I pop my clogs!

Either way, though never bought as an investment, over the long term I would lose nothing as a result of inflation, careful maintenance and improvements, should it eventually be sold.

The weak pound may be deterring Brits from buying, however, there are still plenty of Scandinavian and French buyers in the market it would appear.

Kathleen

Kilkis
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Re: Safe As Houses?

Postby Kilkis » Sat Apr 29, 2017 4:34 pm

If I was living in the UK and thinking of moving to Greece I think the uncertainty over Brexit would be more of a deterrent than the fall in the Sterling/Euro exchange rate.

Also they are only looking short term. If you take a longer term view, now is a very good time to buy, apart from the Brexit uncertainty. The peak of the Greek housing market was in 2007 when the exchange rate was a little under £1 = €1.5. A €100,000 property would have cost a UK buyer around £67,000. Today the exchange rate is a little under £1 = €1.2 but according to official government figures house prices have dropped by 40 %. Thus the €100,000 house would be priced at €60,000 today and would cost the UK buyer around £51,000, a saving of a little over £15,000. Obviously the Greek market has been bottoming out recently so there hasn't been any real price fall since last June when Sterling fell so in that time period it looks worse.

The drop in Sterling also helps those who own property here and who want to return to the UK or fear that they might be forced to. I bought a bit before the peak so my house has probably not lost the full 40 %, say 30 %. If I sold for a 30 % loss I would get 20 % more in Sterling so my overall loss would be around 10 %. Not pleasant but not as bad as it seems when you just look at the market dip here.

Warwick

PS The above ignores general inflation but that has hit savings whatever form they are in.

filippos
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Re: Safe As Houses?

Postby filippos » Sat Apr 29, 2017 7:50 pm

mouche wrote:So builiding equity by owning makes no sence and much better to rent and see the cost of rent go up every year? Good luck!
We sold our house here almost nine years ago and decided to rent for one year while looking for the 'right' place. A year later we decided to continue renting. We are still in the original rental property (3 fitted bedrooms, fitted kitchen, all appliances, large lounge/diner) which, at about 110m², is marginally larger than the house we sold. It is within walking distance of all local shops and tavernas and only 70m from the beach. The rent has never increased.

It was entirely fortuitous that we sold when we did because we have not had to pay property tax, legalisation costs or exterior maintenance. We have no gardening to do or money to spend on plants or stuff like fertiliser and more time to spend on thing we prefer instead of garden maintenance. The money saved by not buying has mostly been invested in a variety of assets the majority of which have increased in value and we are better off now than if we had bought another house. If for any reason we are forced to leave Crete we can do so with no concern about losing many thousands of Euros abandoning or cheaply selling a house.

Thanks for your good luck wishes, Mouche. We're very grateful that we had our share when we did.


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