Greece: Community Properties

Overview

Community properties are those with elements (whether a building, amenities or land) shared with other properties. They include apartments, townhouses, and single-family (detached) homes on a private estate with communal areas and facilities. In fact, the only properties that don’t belong to a community are detached houses built on individual plots in public streets or on rural land. Community properties are owned through a system of part-ownership (similar to that of a condominium in the US) whereby each property owner also owns a share of the common elements of the building or development, including foyers, hallways, passages, lifts, patios, gardens, roads, and leisure and sports facilities (such as swimming pools and tennis courts). When you buy a community property, you automatically become a member of the community of owners.

Many community properties are located in or near coastal resorts and offer a range of communal facilities, which may include a golf course, swimming pools, tennis courts, a gymnasium or fitness club, and a bar and restaurant. Most developments have landscaped gardens and some also offer high security and a full-time caretaker. At the other extreme, cheaper, older developments may consist of tiny cramped studio apartments with few, if any, amenities. Note that some community properties are planned as holiday homes and aren’t attractive as permanent homes.

Advantages

The advantages of owning a community property include: increased security; lower property taxes than detached homes; a range of communal sports and leisure facilities; community living with lots of social contacts and the companionship of close neighbours; adequate off-road parking; no garden, lawn or pool maintenance; fewer of the responsibilities of home ownership; ease of maintenance; and the opportunity to live in an area where owning a single-family home would be prohibitively expensive, e.g. a beach front or town centre.

Disadvantages

The disadvantages of community properties may include: excessively high community fees (owners may have no control over increases); restrictive rules and regulations; a confining living and social environment and possible lack of privacy; noisy neighbours (particularly if neighbouring properties are let to holidaymakers); limited living and storage space; expensive covered or secure parking (or insufficient off-road parking); and acrimonious owners’ meetings where management and factions may try to push through unpopular proposals (sometimes using proxy votes).

Cost

Community properties vary enormously in price and quality, e.g. from around €50,000 for a studio or one-bedroom apartment in an average location, to €200,000 or more for a luxury apartment, townhouse or villa in a prime location. Garages and parking spaces must usually be purchased separately, and a lock-up garage or a space in an underground car park can cost €8,000 to €15,000. If you’re buying a resale property, check the price paid for similar properties in the same area or development in recent months, but bear in mind that the price you pay may have more to do with the seller’s circumstances than the price fetched by other properties. Find out how many properties are for sale in a particular development; if there are many on offer you should investigate why, as there could be management or structural problems. If you’re still keen to buy, you can use any negative points to drive a hard bargain.

Community Fees

Owners of community properties must pay fees for the upkeep of communal areas and for communal services. Charges are calculated according to each owner’s share of a development or apartment building, and not whether they’re temporary or permanent residents. Shares are usually calculated according to the relative size of properties, e.g. the owners of ten properties of equal size usually each pay 10 per cent of the community fees. The percentage to be paid is detailed in the property deed. Shares not only determine the share of fees to be paid, but also voting rights at general meetings.

Fees go towards: road cleaning; green zone maintenance (including communal and possibly private gardens); cleaning, decoration and maintenance of buildings; a caretaker or concierge; communal lighting in buildings and grounds; water supply, e.g. swimming pools and gardens; insurance; administration fees; community rates; maintenance of radio and TV aerials; and satellite TV charges. Always check the level of general and any special charges before buying a community property.

Fees are usually billed at fixed periods during the year and are adjusted at the end of the year when the actual expenditure is known and the annual accounts have been approved by the committee. If you’re buying an apartment from a previous owner, ask to see a copy of the service charges for previous years and the minutes of the last annual general meeting, as owners may be ‘economical with the truth’ when stating service charges, particularly if they’re high.

Community fees vary considerably according to the location and the communal facilities provided. Fees for a typical two-bedroom apartment in a well-maintained complex with good facilities are from €50 to €100 a month, although they can be much (much) higher for a luxury penthouse in a prestigious development. Note that high fees aren’t necessarily a negative point (assuming you can afford them), provided that you receive value for money and the community is well managed and maintained. The value of a community property depends to a large extent on how well the development is maintained and managed. Note that if you own a holiday home, it’s important to ensure that bills are paid in your absence so it’s advisable to arrange for your community fees to be paid by direct debit.

© Survival Books Limited 2005

“Buying a Home in Greece” 3rd Edition, Joanna Styles.

Reproduced with the permission of Survival Books Limited.

Further information on buying a home in Greece can be found in “Buying a Home in Greece” 3rd edition, by Joanna Styles.

For extensive information about buying a property in Greece, you can purchase this book at www.survivalbooks.net