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Purchasing property in Greece

Discussion in 'Where to Buy' started by Beelzebub, 6th Jul, 2015.

  1. Beelzebub

    Beelzebub Well-Known Member

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    So, we know that post GFC property in the US was incredibly cheap and many smart investors were in on the ground floor snapping up property in blue chip markets. Now some years later the median US price has returned to its post GFC levels and many have made tidy profits.

    I'm wondering: Do any seasoned investors see scope for this happening again with Greece? I read that property prices have halved since the debt crises.

    Now, I dare say Greece hasn't hit rock bottom yet, but surely it's close. And Greece still has an educated work force and existing infrastructure.

    Could it make a come back and could there be profits made? No idea of the laws and transaction costs re foreign purchases however.

    Anyway, a thought bubble I had; curious to hear peoples responses.

    Beelzebub
     
  2. LibGS

    LibGS Well-Known Member

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    Another question is, is Greece still a viable country? Recently there has been incredible brain drain, many professionals, especially doctors are leaving.

    Will it be a modern European failed state? If so, would it still be worth buying there even if real estate is cheap?
     
  3. Beelzebub

    Beelzebub Well-Known Member

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    Yes I did read about that. Especially as you have freedom of movement with people in the EU. Post GFC in the US for example all the educated professionals were still there. Still they have a solid base with regard to infrastructure. And surely the tourist spots will remain in demand?

    So I don't know can it make a come back?
     
  4. sumterrence

    sumterrence Well-Known Member

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    Well the problem is majority of them aren't that rich and population is no where as large as US, I'm no expert to Greece economy but just base on simple facts from wiki you can do a simple comparison with Aus and US and you will see.

    Just simply think so long does it take the Greeks to save enough money to start speculating on property market in order for your property to make a decent return, I wouldn't even think you will get a high rental return too.
     
  5. meme plecko

    meme plecko Well-Known Member

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    It's almost like capital city (US) versus small regional town (Greece) argument IMO. Greece is just too small with no capacity to recover if Europe turns its back completely
     
  6. Beelzebub

    Beelzebub Well-Known Member

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    So what I'm hearing: Greece is too small and doesn't have the economic capacity to recover without European help and at the moment there is way too much risk of a Grexit which would essentially be Europe turning its back on Greece. This would cause even more emigration, increase the Greek brain rain and as a result the economy and importantly property prices will never recover?

    Okay, Greece originally belonged to a group of stuffed economies known as the PIGS (Portugal, Italy, Greece, Spain) Does anyone have any knowledge, thoughts or insight into those other economies?
     
  7. Biz

    Biz Well-Known Member

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    Have you ever been to Greece? It's chaos. Unless I had some strong connections on the ground there, no way I would put money in that country.

    People are spoiled with the stability and clarity of the property market here, most other countries are not like that.
     
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  8. Chilliblue

    Chilliblue Well-Known Member

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    As an investor I would stay away. However, I have three Greek friends who are flying over in the next month to take a look at several of the smaller islands to purchase a holiday home. They claim the prices have never been better.
     
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  9. Luca

    Luca Well-Known Member

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    No go zone if you don`t have local contacts you trust. People who have been understand can understand what I mean :)
     
  10. barnes

    barnes Well-Known Member

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    I have been to Greece in 2012 and it wasn't nice. Greece is the first candidate to be kicked out of EU and that's a big risk.
     
  11. JDP1

    JDP1 Well-Known Member

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    Yes id agree with this. Kinda need to know local contacts elsr the risk is high.ie someone who can pull the right strings wiyh the right people, push stuff through, really act on your behalf..
     
  12. Barny

    Barny Well-Known Member

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    My family have a 1 bedroom apartment on one of the islands. Almost halved in price and could be more I reckon, as no local will buy it as they have no money.
    Only others from Europe looking for holiday homes, cheap.
    Rents for peanuts, and the quality of tenants unfortunately are terrible and sometimes cost more in repairing damages than the rents received. Sits vacant for months sometimes as there's no jobs.
    Last 2 tenants skipped without paying.
    The agents are nothing like Australia, they choose to show up when they feel like it, no inspection reports, or photos. Very laid back, she'll be ok mate attitude. They simply do not give a rats ass.
    Was there last year and things are really bad. Greece is still an amazing place, one of my favourite destinations to live.
    They need to leave the euro to have a chance, hopefully one day.
     
  13. barnes

    barnes Well-Known Member

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    They need to leave the euro to have a chance, hopefully one day.[/QUOTE


    If the leave Euro, they'll default the next day. How will they pay back all that was invested in their country mostly by Germany? They are safe for now, because Eurozone is interested in keeping it intact, if they loose one country they might as well disband the whole EU idea. I would welcome this, but Greece will suffer. :([/QUOTE]
     
  14. melbournian

    melbournian Well-Known Member

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    I think if u don't have strong links to Greece as it being Greek or knowing the language it will be pretty hard to get things done in terms of property

    I'm not Greek but have a cousin in Asia married a Greek man and has a like a holiday home in Santorini and some other properties in Greece. He's always saying it is not easy to manage these places and he 's actually quite influential himself as he's the Greek ambassador to the Asian country which has direct access to the pm. So if ppl like him are finding it not easy what about the common folk?
     
    Last edited: 21st Mar, 2016
  15. The Falcon

    The Falcon Well-Known Member

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    As always the risk is confusing cheap with value. Easily done. Long term I don't see a particularly attractive outlook for this economy, so would need to be treated as a trade - if so, you better know what you are doing. And using USA market rebound as a guide for what will happen in Greece is false equivalency IMHO.
     
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  16. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Investing in markets we understand is risky enough. It's beyond me why anyone would want to invest somewhere they barely understand and with very bleak fundimentals at that.
     
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  17. Barny

    Barny Well-Known Member

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    [/QUOTE]

    Greece will, and has suffered regardless of staying or leaving. They can't afford to pay back any current loans that Germany keeps throwing at them anyhow, how many assets can they continue to sell to other countries and still be called Greece just to try and pay the interest rates without evening paying off any of the loans.
    Greece will take a lifetime to heal in my option. It's only just beginning.
    Speaking with family members and locals whilst visiting there, it's clear from what I heard, that the Greeks want to leave the euro.

    If you plan to travel and have never been, I can highly recommend going. Love that place
     
  18. barnes

    barnes Well-Known Member

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    If you plan to travel and have never been, I can highly recommend going. Love that place[/QUOTE]

    I have been there a few times. It's a good place for a few weeks - Athens I mean. I have never travelled the islands though.
     
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  19. Barny

    Barny Well-Known Member

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    I have been there a few times. It's a good place for a few weeks - Athens I mean. I have never travelled the islands though.[/QUOTE]

    Have always preferred the islands. The lifestyle is similar to the Amalfi coast in Italy.
     
  20. York

    York Finance Broker Business Member

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    A retired couple who I know well are in the process of buying a villa in one of the islands. They know the area well and have been there every year since retirement. For them, it suits them to buy a place and spend 6 months per year there rather than rent a place every year. They love it and they want a place of their own. Simple. They are spending something like 50k Euros for the villa. They are happy with that and it doesn't impact their overall wealth much. They understand that they most probably wont see any gain and that they may even lose in the short to medium term. But for them it's a lifestyle thing. From an investment point of view, I wouldn't even consider it. The country is far far away from a recovery that would see real estate start appreciating.
     
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