Greek Elections and What They Mean for Greek Property Investment

 

The Greek Fires – The Final Coffin Nail For Karamanlis

After the notorious fires of two years ago, which led to huge tracts of land laid waste, everybody assumed that the Greek government would have learned their lesson. With the ravaged lands just starting to regenerate, the fires struck again, destroying a huge area and reaching the outskirts of Athens itself. Sadly, the emergency response was disorganised and, once again, the Greek government stands accused of being directionless and rudderless. The perception of Karamanlis as incompetent plagues every political satire show and fills every newspaper op-ed.

 Whilst the Greek fire-fighters fought admirably and bravely, the conspiracy theorists have once again suggested arson by land developers, keen to open up vast tracts of virgin forest for property development. Karamanlis stands accused of doing nothing to stop these practices and, under pressure, has called Greek elections in October. Coming on the back of a poorly handled response to the economic crisis, things look bleak for Uncle Kostas.

Greek Elections – Kostas Goes All In

In a straight out fight between Karamanlis’ New Democracy and Papandreou’s PASOK, ND will lose. However, Karamanlis is attempting one last throw of the dice, in a desperate gamble to hold onto power. The left-wing Syriza coalition is growing in popularity, under the stewardship of the young and charismatic Alexis Tsipras; Karamanlis is hoping that they, and the Green Party, can draw enough support to split the left wing vote. This will allow ND sneak through the back door, especially as the Greek electoral system is weighted to minimize the risk of hung parliaments and forced, static coalitions.

Karamanlis announces Greek Elections - How will this affect Greek property investment?

Greek Property Investment – Fear Of The Socialist?

If PASOK are victorious, many investors will be deterred by a socialist government and perceived left wing taxation policies, although PASOK long since gave up any pretence of being socialist – think British ‘no longer’ Labour party. This is a red herring and investors can still invest safely without fear of an increased tax burden. For Greek property investors, nothing will change in the foreseeable future and, if you are in the process of making a Greek property investment, there is no need to panic as long as you have performed your due diligence.

However, whichever party is victorious in October’s Greek elections; you can expect them to start taking strong action against dubious land developers. The new government will have to curb the rhetoric and actually take action to enforce the land registry and property licensing laws. If you are thinking about investing, you must make sure that your dream property has the correct paperwork and carries no suggestion of illegality. Following the steps towards finding a good lawyer and notary is more important than ever, lest you risk becoming a statistic. We have a guide to buying property in Greece if you need any pointers.

Greek Comedy – The Power of Satire

Greece has been under pressure to complete its land registry for many years and this election should provide the final impetus. Greek satirists, never kind at the best of times and unrestrained by any notion of good taste, are merciless in lampooning the government for bowing to property developers. The new government will be only too aware that a good satirist never forgets, and merely waits for an opening.

Again, this adds to the pressure on any new government to halt developments in protected areas because Greeks are tired of losing their green space. Whilst there is no proof, ND were perceived to be in the pockets of the property developers, so politicians will be keen to starve the comedians of any opportunity to pounce.

Greek Property Investment – Taking Advantage Of A Quiet Market

 Again, as long as you make sure that you have the right people in place, there is no need to panic. In fact, the uncertainty surrounding this election can be turned to your advantage. The big players generally play a game of ‘wait and see’ at election time, so you can use this as a bargaining tool during your negotiations and pressure for a lower price/quick sale agreement.