Plan your home now to save cash

Engineers' fees for planning permission will double in the new year, with a knock-on effect for other costs, say experts

ELAINE GREEN

DO YOU own a plot of land? Perhaps you bought a modest little "oikopedo" some years ago in a distant village with a dream of one day building a holiday home. Or perhaps you or your partner have recently inherited a piece of land.
Well, now is the time to stop dreaming and get planning permission from the Town Planning Authority (Poleodomia), because from 1 February 2007 the engineers' fees payable in order for planning permission are set to double.
Experts say that if your land is within the town plan, you should not wait to get building permission - otherwise costs will escalate. They point out that even if you don't have the cash to build now the permit lasts for four years and can then be renewed for another four years after that. And you don't have to build the whole house at once - small stages will suffice to satisfy the authorities.
The doubling has come as a shock to real estate punters because fees have remained static since 1989. But the hike is well justified from the engineers' point of view. By way of comparison, the cost of construction materials has risen by 1,200 percent since 1989.
What will it cost?
At present, the engineers' fee is around 44 euros per square metre. This is set to go up to 85-90 euros per square metre. Bear in mind that the cost is worked out on the overall size, with each floor included, not just the land surface occupied. For example, at present for a detached house totalling 100 square metres, the cost at present of issuing planning permission is around 6,600 euros. However, from February this will be around 13,200 euros.
The government is also planning a 1 percent levy on planning costs. So, for example, if your house will cost 100,000 euros to build, a 1,000-euro fee will to go to the planning authorities next year. This fee will be used to hire engineers from a body of 2,000 nationwide to be used by for inspections and tightening up monitoring of the overall system. Together with engineers' fees, this will mean in an increase of between 3 and 5 percent on your final building costs, say experts.

Knock-on effect
The hike will also have a knock-on effect on other costs. As well as providing architectural detailed plans of your house, the architect presents what is known as a 'conventional budget'. The increased cost of planning permission and the 1 percent levy on that budget will mean that the VAT on the minimum cost of building, as well as IKA insurance payments for workers, will increase. At present IKA is 50 euros per square metre, but this is also expected to rise by 3 to 5 percent, whilst the 'real budget', namely the actual cost of building will rise from the present 1,000 per square metres to 1,030 and 1,050 euros per square metre.
How big can my house be?
Greece has very strict planning laws in regard to what can be built and where. For example, in some areas you are required to leave considerable distances between your house and the road, whilst in others you may be restricted to two floors only. Some areas allow you to build right up against your neighbour as long as you don't leave windows, others require you to adjoin the neighbour unless you are leaving several metres of garden in between.
Before you buy a piece of land you should employ a local lawyer to make all the necessary checks on ownership and building options. Once the land is yours, the architect you employed to produce the architectural study and do an analysis of the topographical plans is normally the same person employed to obtain the building licence. However, either a registered architect or an engineer can apply for permission for you.
When this expert has obtained your building permit he/she is the person responsible for authorising that the building works and installations are correctly installed and for signing off the job so that you can have your utility services connected and the authorisation that your building is legal.
More restrictions ahead
Experts say that further new laws are due to go through parliament regarding the percentage of land you may build on. The percentage is set to be considerably reduced in some areas. This could drastically affect people with a small piece land - no longer making house-building viable in some cases.
On the issue of whether there is time to get permission before February 1, two architects both told the Athens News that it is possible. "Once the designs are agreed and submitted, it can take as little as two weeks to get permission," said one expert.
Building tips:
* Pick an architect who is recommended to you by someone, and who you trust to work quickly to get permission before February
* Make sure he or she understands your requirements and speaks the same language as you
* If you are getting a loan for building, you will need to show the contracted budget costs to your bank for their agreement
* Make sure that IKA, VAT and the cost for the building permit are included in your contract. Ask for an estimate on the additional costs
* Consider selecting a builder for your house, independent of the architect's choice. Your contract should reflect that option
* Be aware that the number of floors you are allowed to build depends upon local criteria, as does the area of land your house can occupy and that the rules will tighten in this respect
* Consider a bank loan for your building costs - there are some good deals on the market at present.
* Do you have a house-building experience to share? Send your views and comments to makesmorecents@hotmail.com
If you would like your comments to appear in print, please mark the email Letter to the Editor and copy to an-community@dolnet.gr Alternatively, post to 3 Christou Lada St, Athens 10237 or fax to 210-333-3701, marked appropriately
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Before the hike
Detached house of 100 square metres - planning permission costs around 6,600 euros
After
From February 1, permission to build a house of 100 square metres will cost around 13,200 euros

ATHENS NEWS , 01/12/2006, page: A36
Article code: C13211A361