Comments on: The Greek Property Market and the Economic Crisis http://internationalpropertyinvestment.com/the-greek-property-market-and-the-economic-crisis Property Investment around the World - Buying Investment Properties Fri, 14 Oct 2011 16:38:56 +0000 hourly 1 By: Martyn Shuttleworth http://internationalpropertyinvestment.com/the-greek-property-market-and-the-economic-crisis#comment-19597 Martyn Shuttleworth Mon, 23 Feb 2009 22:36:12 +0000 http://internationalpropertyinvestment.com/?p=1788#comment-19597 Hi Pierre Thanks for commenting. The problem with predicting any trends in Greece is the fragmented nature of the market. Across most of Greece, houses reflect the 'real' value, and have not been inflated by desirability. I was careful to state 'tentative investment advice', because things are changing on a monthly basis - the crisis is new territory for all of us. Some of the hot-spots are a completely different market, and Mykonos is one of those. Try not to judge Greece by Mykonos, which is the domain of the privileged few. It is one of the most desirable places in Europe, so the prices for property are extremely steep - it is more akin to Monaco than Greece. So far, there have been no signs that people are dumping houses there. Whether this will be the case next year - I genuinely have no idea. In many ways, the Greek economy is under pressure, caused by the hang-over from the introduction into the Euro. However, the banks were conservative and avoided the worst of the sub-prime crisis, so everything is holding together at the moment. That said, I fear that the predicted decline in tourism will have serious repercussions in the summer. In terms of property, Greece is a very slow market. It is not a country where you can make a quick fortune in property investment. It really is more for those who want to buy a second home or retire to the Med. Parts of Greece still have some genuine bargains, although you need to look away from the tourist spots. The reason that the property market seems to be weathering the storm is that it never had a property-bubble, unlike the UK, Ireland, Spain and Cyprus. The Capital Gains Tax (up to 20%) has prevented the speculators from trying to 'flip' properties. In addition, Greece has the highest rate of outright ownership in the EU, so is not likely to have a major problem with foreclosures. My speciality is with lower budget purchases and renovations - if you need any help, stay in touch! I would also like to point out that I am a journalist - I am not affiliated to any agent, nor do I make any money from property, so I strive to give independent advice. Hi Pierre

Thanks for commenting.

The problem with predicting any trends in Greece is the fragmented nature of the market. Across most of Greece, houses reflect the ‘real’ value, and have not been inflated by desirability. I was careful to state ‘tentative investment advice’, because things are changing on a monthly basis – the crisis is new territory for all of us. Some of the hot-spots are a completely different market, and Mykonos is one of those.

Try not to judge Greece by Mykonos, which is the domain of the privileged few. It is one of the most desirable places in Europe, so the prices for property are extremely steep – it is more akin to Monaco than Greece. So far, there have been no signs that people are dumping houses there. Whether this will be the case next year – I genuinely have no idea.

In many ways, the Greek economy is under pressure, caused by the hang-over from the introduction into the Euro. However, the banks were conservative and avoided the worst of the sub-prime crisis, so everything is holding together at the moment. That said, I fear that the predicted decline in tourism will have serious repercussions in the summer.

In terms of property, Greece is a very slow market. It is not a country where you can make a quick fortune in property investment. It really is more for those who want to buy a second home or retire to the Med. Parts of Greece still have some genuine bargains, although you need to look away from the tourist spots.

The reason that the property market seems to be weathering the storm is that it never had a property-bubble, unlike the UK, Ireland, Spain and Cyprus. The Capital Gains Tax (up to 20%) has prevented the speculators from trying to ‘flip’ properties. In addition, Greece has the highest rate of outright ownership in the EU, so is not likely to have a major problem with foreclosures.

My speciality is with lower budget purchases and renovations – if you need any help, stay in touch! I would also like to point out that I am a journalist – I am not affiliated to any agent, nor do I make any money from property, so I strive to give independent advice.

]]> By: Pierre Guillery http://internationalpropertyinvestment.com/the-greek-property-market-and-the-economic-crisis#comment-19583 Pierre Guillery Mon, 23 Feb 2009 12:15:11 +0000 http://internationalpropertyinvestment.com/?p=1788#comment-19583 Hum... I'm increasingly curious about your "enthusiasm" for Greek properties. If I may, I'd say that the tone of this post is akeen to that of some of the Dubai press releases : "softening, but no problems." Really? I mean, I know nothing about Greece - well, not much: I've asked questions in Mykonos 2 years ago. I wasn't impressed: the message I got was that you have to know somebody and have a bit of spare cash to circumvent the administrative intricacies of the system, and even at that prices are (were...) comparable to those of some expensive hotpots in Europe. And in the above post I read that prices in Mykonos are "holding on steady". Isn't Greece (the country) almost bankrupt? Why would the situation there be any different from Ireland or the UK or Dordogne? My opinion is skewed by what I heard in Mykonos, but, well, I guess I am a little bit suspicuous... Hum… I’m increasingly curious about your “enthusiasm” for Greek properties. If I may, I’d say that the tone of this post is akeen to that of some of the Dubai press releases : “softening, but no problems.” Really? I mean, I know nothing about Greece – well, not much: I’ve asked questions in Mykonos 2 years ago. I wasn’t impressed: the message I got was that you have to know somebody and have a bit of spare cash to circumvent the administrative intricacies of the system, and even at that prices are (were…) comparable to those of some expensive hotpots in Europe. And in the above post I read that prices in Mykonos are “holding on steady”.

Isn’t Greece (the country) almost bankrupt? Why would the situation there be any different from Ireland or the UK or Dordogne? My opinion is skewed by what I heard in Mykonos, but, well, I guess I am a little bit suspicuous…

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