# Is this the time to sell?



## MDUK (Feb 15, 2010)

I have a property in Greece that I don't really have time to get out to at the moment. I keep thinking when the situation here improves I will be able to go out for short breaks and holidays and eventually spend 3 or 4 months out there.

The reality is I am not getting the time and I don't see the situation changing in the next couple of years. In the meantime the apartment is falling into disrepair. It has been in the family for over 20 years and hasn't had any real work done in that time. 

Our neighbours offered to buy it a couple of years ago but as it only cost me a few hundred euros a year for water/electrics/insurance I just thought I would sit on it.

The kitchen needs doing, so does the bathroom, it needs new windows and doors and patching and painting through out. I would like to knock the wall from the kitchen through to the main room so I think It needs AT LEAST €10,000 and to really get it nice probably €20,000.

Reading the British press it seems, many Greeks are taking their money out (to Germany/Turkey etc) mainly dues to the fears of the future of the Euro. If the Euro collapses and they return to the Drachma the same press is suggesting properties (like mine) will half in value.

So my question is, should I talk to the neighbours and see if they are still interested, Or hold my nerve and continue to sit on it?

If they are not how do I advertise it, it is in a unique location and the area appeals to affluent Athenians as a weekend and summer home.


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## The Grocer (May 30, 2010)

The property market in Greece is currently totally flat. I know of one estate agent who has not sold a property in over a year, and if you look at the online properties for sale many have been on the market well in excess of that.

If you have a buyer and can realise your price I would certainly think about it. I anticipate over the next months the euro will continue to fall and hence any exchange rate may also benefit you.


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## wka (Sep 18, 2009)

The real market in Greece has collapsed utterly, so you will not be able to sell it for anywhere near its 2008 value. Property isn't selling right now pretty much at all. There are a LOT of people in Greece stuck holding property they can't use right now. Your best bet is of course to hold onto it for your own use, rather than holding onto it to sell later, but EVENTUALLY the market will improve. If Greece leaves the Euro, then the actual value will diminish further but the price may not - keep in mind the price right now would be far, far below its value. It is very hard to say whether Greece will stay in the Euro or not - and it is a good idea to consider both options - but realize that if Greece does say in the Euro, it should lengthen the amount of time to an economic recovery significantly. It could easily take 15 years for the real estate market to improve, based on what many (most) predict. 

What this IS the time to do is to consider the repairs. The construction sector is in such a bad situation that you can often find total home renovations for 1/3 of the 2008 cost. 

As all real estate investments for future sale are risky, this is also, but it may work to your ultimate advantage to pay for the renovation now, when renovation prices are very low, in order to boost the resale value of your home when the market does eventually improve. (At least if you are able to use it, you can enjoy it more.)

Also consider renting it out. And you can ask your neighbors if they're still interested. The plot will hold its value better than the house, so they may be willing to take it as-is. 

One last thing to be aware of is that until the end of 2012 there is a temporary lifting of the "πόθεν έσχες" rule which, except for during this amnesty period, requires a home buyer to prove exactly where the money to purchase the property came from, resolving any tax irregularities along the way. Since real property is the best way to hide untaxed money, this is a perverted attempt at encouraging the real market during the crisis. Since you are in a wealthy area, there may be potential buyers out there who want to take advantage of the πόθεν έσχες amnesty to hide their money in - but I will warn you that this is not a very common or popular choice, and most of those people are sending their money outside Greece rather than investing inside Greece.

One final note: Don't forget to pay the new property tax on it that's due around now. I just paid ours last week - total was €340 for 85 m2 taxable space in the cheapest "zone" and the oldest category - so yours will probably be considerably more if it's in an affluent area. I mention this since you aren't in Greece, maybe you aren't aware - this is a special tax that was just assessed and is due now, and will be due again several times in 2012.


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## MDUK (Feb 15, 2010)

Thanks for the advice and information, some very interesting things to consider. i don't see myself getting the use that i though i would and tbh i could use the money.

i think i need a trip out to greece and see how bad it is has got and tap up the neighbours to see if they are still interested. while the area isn't affluent as such, the position is unique. it will appeal to athenians.


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