Will Athens Property Market Crash

Will Athens Property Market Crash Again?

There’s talk everywhere online about the impending crash in 2019

Housing prices in mature markets in places like London, Vancouver and Sydney have taken a bartering recently.

This means that when we tell investors that we’re buying property in Athens their first reaction is usually- you must be crazy!

But is it really so crazy? Everyone knows the great Warren Buffett made all his money buying when the ‘experts’ said ‘sell’.

Property is a weird one. People behave in strange ways in the property market boom and bust cycles.

Here’s an example (borrowed from Robert kiyosaki). When you go to the supermarket and they have a BOGOF on your favroite cookies, do you buy more or fewer packets?

Of course you buy more. Doh!

So why is that when we talk of real estate markets we find people including investors it must be said, who stop buying when prices are low?

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Motivated Sellers Athens Greece

Case Study – Motivated Seller in Athens

This is a really interesting deal and shows what can be achieved with some creative thinking and a willing and motivated seller.

The seller had bought his apartment in 2008 just before the GFC and still some time before the Greek crash of 2011. This meant he was one of the many Greeks who bought on bubble valuations with loans granted by the Greek banks with little or no checks. Sound familiar?

How to make money on this contract?

So the seller who we’ll call G, could no longer afford to keep paying the mortgage on the property. He thought the property, which was in a nice middle class suburb of Athens, not far from the beach, was valued at around €250,000. His bank debt was €170,000 and his total debts were approx €260,000. When we met G at the apartment we talked through why he was selling, what his situation was, his plans for the future, etc.

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Using Greek Lawyers

Lawyers, eh? Gotta love ’em.

If you’ve ever seen some old Charles Dickens type story with lawyers sitting in dark wooden rooms with shelves of dusty books behind them, well that could be Greece in 2019. Let’s just say the way lawyers work is a little different from anglo countries.

Some surprising things about Greek lawyers…

They’re social animals – they love to dine out on your dollar!

They like to get out of their offices and go and meet sellers’ lawyers for a chat and a coffee. But guess who’s paying for that? One foreign investor we know (we’ll share his story one day) racked up a bill of thousands of euros because he didn’t stop his lawyer from going to view properties and negotiate with sellers.

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