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95% Of The Real Estate Market In Greece Is "All Cash"

Tyler Durden's picture




 

When PM Alexis Tsipras announced that he was set to put Greece’s creditors’ proposals to a popular vote, lines quickly formed at ATMs despite the fact that the referendum call came after midnight local time. And while the long queues served as a poignant reminder of just how worried the Greek people truly were about the future, the more shocking images surfaced around 24 hours later when the shelves at Greek grocery stores began to resemble those of another socialist paradise: Venezuela. 

The empty supermarket shelves and long waits at gas stations presaged the acute credit crunch that accompanied the imposition of capital controls. Ultimately, the Greek economy was crippled as vendors, unable to obtain credit from suppliers, faced the possibility that they would have to close the doors if they couldn’t manage to keep the shelves stocked. In short, an economy already in free fall slipped into a terminal decline. 

There’s quite a bit of disagreement about whether or not more austerity will succeed in returning Greece to growth - some say the situation can only get worse under the terms of the proposed third bailout agreement while creditors insist that the mandated "reforms" are meant to put Greece back on track. Whatever the case, the country remains, for now, stuck in what can only be described as a depression which is why we weren’t entirely surprised to hear that half of Athens’ real estate agents have been forced to close their doors as the property market in Greece is now almost completely dependent upon buyers who can afford to pay cash. Here’s Bloomberg with "a day in the life of a Greek realtor."

 

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Mon, 07/20/2015 - 17:31 | 6334237 ZippyBananaPants
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Who can buy a house with $60?

Mon, 07/20/2015 - 17:33 | 6334246 UndergroundPost
UndergroundPost's picture

International Banksters must be destroyed

Mon, 07/20/2015 - 18:16 | 6334469 0b1knob
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Yes but consider the non-discriminatory egalitarian nature of the system.

Now everybody, regardless of age, sex, race or religion, is equally denied any sort of mortgage.

Mon, 07/20/2015 - 18:28 | 6334530 kaiserhoff
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Half the real estate agents being forced to shut down?

I am so looking forward to that here.

Mon, 07/20/2015 - 21:15 | 6335158 FEDbuster
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$60. will get you a couple of "fixer uppers" in Detroit.  Athens shouldn't be far behind.  I think I read they have had 7 or 8 property tax increases in the last few years.

Mon, 07/20/2015 - 17:35 | 6334253 Kaiser Sousa
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"95% Of The Real Estate Market In Greece  & United States Is "All Cash"

there you go...

pay me later....

Mon, 07/20/2015 - 17:40 | 6334286 The Delicate Genius
The Delicate Genius's picture

does anyone doubt that in 10 years, shit, 3 years, there will be a large uptick in the amount of foreigners who own Greek islands, and ancient ruins and fat rendering plants and such?

What's next - portugal or italy?

Or will France, that pile of shit, surprise us?

Mon, 07/20/2015 - 17:51 | 6334343 ajax
ajax's picture

 

 

When a tiny storefront at Evian-les-Bains in France, which is just across Lac Leman from Suisse, becomes a real estate office without a word of French written on its window or mailbox, already in 2010 - well my friends ... from tiny storefront offices grow large oaks of absolute corruption.

 You have no idea what is going on.

 

Mon, 07/20/2015 - 18:02 | 6334403 ajax
ajax's picture

 

 

"does anyone doubt that in 10 years, shit, 3 years, there will be a large uptick in the amount of foreigners who own Greek islands, and ancient ruins and fat rendering plants and such?

What's next - portugal or italy?

Or will France, that pile of shit, surprise us?"

 I saw a man being arrested by the douane/tax/police on a train from Milano to Zuerich. He was transporting an ancient statue of Pan from god knows where to god knows where. The traffic of ancient artifacts is fucking astounding. The Swiss and Germans will pay any sum for the stuff - any sum.

At least the Greek and Italian artifacts aren't being blown to smithereens by ISIS which is more than one can say about ancient Babylonian artifacts. This is some fucking serious shit going on. ISIS, or ISIL, is destroying the world's intellectual heritage and no one is doing anything about it. Isaac Newton is turning/spinning in his grave.

Wake the fuck up everybody !!!

Mon, 07/20/2015 - 18:15 | 6334466 mrpxsytin
mrpxsytin's picture

Are you talking about the real fakes or the fake fakes?

Mon, 07/20/2015 - 18:26 | 6334520 kaiserhoff
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Yes, you have about the same rate of authenticity with antiquities as in sports memorabilia.

Two chances, slim and none.

Tue, 07/21/2015 - 04:22 | 6336083 acommenter
acommenter's picture

Greece is FULL of antiquities. They are systematically hidden so as not to stop any works (buidings/roadds/agricultural). Essentially for every work that requires digging, the contractor is obliged to have an archeologist giving clearance.

Mon, 07/20/2015 - 17:45 | 6334315 JenkinsLane
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Seems legit.

Mon, 07/20/2015 - 17:45 | 6334316 Soul Glow
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I bet it is wild at the coin shops.

:)

Mon, 07/20/2015 - 17:49 | 6334334 Infinite QE
Infinite QE's picture

Lots of khazars invading Greece.

Mon, 07/20/2015 - 17:54 | 6334356 MsCreant
MsCreant's picture

We have had our collapses and such, but most of us alive have never seen it that bad here in the states. It's coming. I am not willing to call the when (I am always too early in my calls), but it is coming. 

All this QE has been like partying on coke, wanting to fall asleep, then propping up with more coke to keep the show going, for days on end. You will, eventually, fall the fuck apart, freak out, and melt down. 

Mon, 07/20/2015 - 18:01 | 6334397 g speed
g speed's picture

A word of advice Ms --go out side tonight under a clear sky with a good pair of binoculars --take a long look upward--gain some perspective--It'll be good for you soul--stay safe--

Mon, 07/20/2015 - 18:38 | 6334585 MsCreant
MsCreant's picture

All is indeed okay, here now. That is just true.

Mon, 07/20/2015 - 18:04 | 6334410 Soul Glow
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I hate coke.  I'd rather get drunk, take a bong rip and pass the fuck out.

Mon, 07/20/2015 - 18:38 | 6334581 MsCreant
MsCreant's picture

Me too. Learned as a young woman and never touched the shit again. I don't like drunk. I have been ill off of 7 drinks for as many as 5 days. Not worth it. Still better to do that than coke.

Mon, 07/20/2015 - 18:20 | 6334481 ajax
ajax's picture

 

 

Yes it has happened to you "in the states" over and over again and most people still alive "in the states" lived through an unspeakable hell especially since Fall of 2008.

Mon, 07/20/2015 - 22:24 | 6334573 MsCreant
MsCreant's picture

Not like that. In the depression (1929-30's) sure. 2008 was bad for a lot of folks. There are more people at the food pantry's than ever before, there is a lot of poverty, unemployment, underemployment, but we have the funds for the moment to do EBT, section 8 housing, and such. Greece is running out of even that. 50% of our realators are not closed down. It is crashing, but we are not at the level Greece is experiencing.

I am actually criticising the US. We thought 2008 was bad, I think we need to get a fucking grip, we ain't ready for what is coming.

Mon, 07/20/2015 - 17:58 | 6334368 g speed
g speed's picture

tons of upscale snazy types can't wait to buy cracker in the burbs of Athens---a few years ago they paid 1.something mill E--today not so much--another exciting investment for the vapid rich and clueless-- rave on--

Mon, 07/20/2015 - 18:02 | 6334401 Cold-Pragmatism
Cold-Pragmatism's picture

BWAHAHAHA!!! Poor little rich Greece!

What do you expect from Bloomberg, focusing on the millionaire market.

This ludicrious video is about the the top end of the market. Oh those poor rich Greeks that can't afford 1,200,000 euro homes!

The real estate market has crashed from 3,000 Euros to 2,000 Euros sq.meter! Its still 1,000 euros per square meter too expensive!!

Give me a break! So now you have to have earn the price of your home...what a concept!

Get this through your heads people. 50 to 60 years ago, an average home used to cost about 2-3x average income. The median salary in Greeks is about 25,000 euros. So an average home, compared to historical values should be no more than about 75,000, for about 120 sq. meters. That is it should cost no more than 75,000 euros for a 1,200 to 1,500 sq. foot home, that is for a middle class neighborhood. At the higher income neighborhood, it shouldn't be more than 150,000 to 200,000 euros. That home in that video is still going at 600,000 Euros, that is 20x median income!!! It was going for 40x before its price reduction!!!!!

BWAHAHAHA!!!!

Greek real estaste is still in a super bubble! So 50% of the relators are gone.....GOOD. Lets see another cut in half of the remaining relators!

Real Estate are bubble markets nearly everywhere in the world because of EASY credit. Now things are getting back to normal in Greece, I say getting, for there is still a long way to go for the market to correct itself in Greece!

When I see that same house in that video sell for 250,000 Euros, down from its 1,200,000...then we will have normalcy. For now, let the house bubble in greece deflate! As it should everywhere in the world. 

Oh another stupid story by Bloomberg!

Mon, 07/20/2015 - 20:35 | 6335026 Omen IV
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Greece has  been a huge experiment for many different types of markets as free cash flow is forceably extracted from the system for millions of local citizens - at the bottom, middle and higher end income with with deep equity in the properties - when do they capitulate with no income if no pressure from a mortgage but the taxes cant be paid -  and they still have to eat without source of cash flow? sell the kids?

the place is set to implode

we are going to see this play out everywhere including the USA - once they attack pensions due to no yields, plus ZIRP personal investments plus SS is upended - the property tax bills many places arent sustainable - prices have to come down radically

Mon, 07/20/2015 - 18:04 | 6334409 Bill of Rights
Bill of Rights's picture

It's amazing how the fake media and the political shills who own it are attacking Trump on the McCain comment... These people are so fake and predictable it's silly.

Tue, 07/21/2015 - 08:42 | 6336449 rex-lacrymarum
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McCain was the son of a famous general - there is every reason to believe that is "hero" story was made up to protect the general's reputation. Rumor has it that McCain was Hanoi's version of "Tokyo Rose" during his captivity. His tales about being tortured and resisting his captors' demands out of a sense of duty are actually doubted by a number of serious researchers. The trail starts here: http://www.unz.com/runz/american-pravda-when-tokyo-rose-ran-for-presiden...

Mon, 07/20/2015 - 18:06 | 6334427 sosoome
sosoome's picture

"This year we have sold less than two"

LOL!

Mon, 07/20/2015 - 18:08 | 6334434 VWAndy
VWAndy's picture

Fiat magic.

Mon, 07/20/2015 - 18:24 | 6334497 ajax
ajax's picture

 

 

"Fiat magic."  + 1000   bravo "VWAndy". By the way, I wouldn't buy a VW if you put a gun to my head Andy.

Mon, 07/20/2015 - 19:24 | 6334750 VWAndy
VWAndy's picture

I gave up on new vws years ago. So thats two things we agree on!

Tue, 07/21/2015 - 02:01 | 6335937 Holy Roller Empire
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Off topic, but I had a 1983 VW GTI. It was the most fun car I ever owned to this day. Too bad the transmission was shot at 80K miles. Not keen on buying a new VW though.

Mon, 07/20/2015 - 18:23 | 6334504 Ms No
Ms No's picture

I used think that buying properties or a farm with cash and gold after the collapse may create a future but now that just seems silly. 

They will steal and redistribute everything and we will all end up sitting by a fire of pine needles, with a can of beans and a pocket full of shells.  Getting off the sinking sheep is starting to look like the only option. 

Mon, 07/20/2015 - 21:46 | 6335286 FEDbuster
FEDbuster's picture

Nice imagery.  Post-collapse governments might find stealing from productive people may be a risky proposition.  My prepper friends tend to have an "Alamo" mentality.  As the Greeks would say "molon labe".

Mon, 07/20/2015 - 18:24 | 6334511 Fedlin
Fedlin's picture

Welcome (Greeks) to Argentina.Any resemblance is surely just a coincidence ...

Mon, 07/20/2015 - 18:25 | 6334512 Fedlin
Fedlin's picture

Welcome (Greeks) to Argentina. Any resemblance is surely just a coincidence ...

Mon, 07/20/2015 - 18:25 | 6334516 Peter Pan
Peter Pan's picture

I have looked at the Greek market especially around Athens and spoken to a number of people. My observations:

1. Prices have been gutted. Less than 50% pre GFC.

2. Maintenance since the downturn is poor.

3. Compared to US housing, the buildings are solid as mountains compared to shitty US construction.

4. Asking prices are just asking prices and one can hammer down the price without fail.

5. Tax regime for property owners absolutely sucks. No concept of deducting expenses against income. Just a flat rate of tax depending on how much property income you make.

6. Compared to wage levels the prices are still over the top by Greek standards but cheaper for foreigners than they have ever been.

7. Very very hard to get rid of tenants.

8. Consclusion: Stay away unless you are happy to pay property taxes.

Tue, 07/21/2015 - 02:59 | 6336008 DontGive
DontGive's picture

Thanks for the low down. It's hard enough manageing cross states - but if their tax scheme sucks a fat one, and you have a buncha deadbeats, that's a problem.

Stick to buying villas or don't do it at all.

Mon, 07/20/2015 - 18:59 | 6334522 The Delicate Genius
The Delicate Genius's picture

We already know who's snapping up all of Greece's gorgeous villas

http://europe.newsweek.com/wealthy-russians-rush-buy-luxury-greek-villas...

^Russian Russians?

---

Israelis invited to buy up Greece's infrastructure
http://www.israeltoday.co.il/NewsItem/tabid/178/nid/23588/Default.aspx

Israel and Greek debt – Israel can aid Greece by helping preserve ancient Jewish history
http://www.jpost.com/Opinion/Israel-and-Greek-debt-Israel-can-aid-Greece...

Mon, 07/20/2015 - 18:30 | 6334546 wedderburn
wedderburn's picture

still expensive for a cash market

Mon, 07/20/2015 - 19:14 | 6334706 Escapedgoat
Escapedgoat's picture

That lot over there are having a lot of cash already. They do not bother to lower any more their prices, as they are the  ones that voted NAI (Yes) in the last Referendum.

Everybody is watching when the rot is going to stop and then they will act.

Greeks always were Cash conscious, Credit was only pushed in the last 10 years, and only to the younger generation, that had not taken is  the previous experience from their Grand Parents.

Mon, 07/20/2015 - 18:31 | 6334549 The Delicate Genius
The Delicate Genius's picture

Poll: 85% of Greeks Believe the Jews Have Too Much Power Over Global Finance

http://freebeacon.com/issues/poll-85-of-greeks-believe-the-jews-have-too...

"A new poll by the Anti-Defamation League found that the majority of Greeks continue to hold anti-Semitic views about Jewish control over finance and the global economy, despite a recent drop in anti-Jewish attitudes in other parts of Europe."

'Anti-semitic'.... in other words, believing something, basically true, about disproportionate Jewish wealth/power/influence... is basically true.

Mon, 07/20/2015 - 19:36 | 6334790 daveO
daveO's picture

A 'moral' justification to end bailouts. They're raaacists!

Mon, 07/20/2015 - 18:51 | 6334630 i_call_you_my_base
i_call_you_my_base's picture

Stupid to buy now anyway. Might as well wait until the troika forces foreclosures and liquidation.

Mon, 07/20/2015 - 18:53 | 6334638 GRDguy
GRDguy's picture

Hmmm. Sellers don't trust long term paper promises, so they demand cash, which is very short term paper promises.  Imagine that.

Mon, 07/20/2015 - 18:54 | 6334641 tribune
tribune's picture

only able to take out a small amount of cash from the banks, surely greek real estate has crashed by 90% already?

Mon, 07/20/2015 - 18:58 | 6334647 i_call_you_my_base
i_call_you_my_base's picture

No, because like every other dumbfuck government, they passed laws delaying or outlawing foreclosure and additionally banks don't sell at a loss besides so that they don't have to book losses, because then they go insolvent on paper (as if they weren't already).

Mon, 07/20/2015 - 19:01 | 6334664 Chris Dakota
Chris Dakota's picture

Sounds like 2009 when JP Morgan investment group was buying everything up.

Mon, 07/20/2015 - 19:48 | 6334858 Tarshatha
Tarshatha's picture

Who would ever receive payment for the sale of their home, and deposit the cheque in the bank they could never draw on???????

Just look at Argentina, only an idiot would keep a large sum of money in the banking system.

If you hold stocks and can't cash them at minimum take possession of the physical certificates.

Mon, 07/20/2015 - 20:04 | 6334907 scatha
scatha's picture

They forgot to say that 95% of buyers are rich German or rich German-Greeks. More Germans are waiting until this bailout fails as it must to buy more Greek houses on a dip.

If one wonders why in the world Merkel wants German taxpayer to be even more on the hook of those unpayable debts, That's the reason. Meanwhile, they will buy Greece on cheap so on balance German/EU government cronies will make out like bandits as usual.

Mon, 07/20/2015 - 20:19 | 6334966 pashley1411
pashley1411's picture

When you take away the monetary punch bowl and parse an economy down to essentials, my my, how much fat shrinks away.

Mon, 07/20/2015 - 21:36 | 6335243 ChooChoo
ChooChoo's picture

And ofc they picked the best out of the 2 best places for real estate in Greece ;p 
1.2 is normal for New York man... but Athens is no New York!

Bloomberg done it yet again ;p 

Mon, 07/20/2015 - 22:03 | 6335342 Mamzer Ben Zonah
Mamzer Ben Zonah's picture

I went to a prostitute and asked her if I could do her Greek style. "Sure" she said.

 

So I fucked her in the ass and left without paying.

Tue, 07/21/2015 - 01:19 | 6335883 Kprime
Kprime's picture

was she a german girl? u could have fucked her in the ass and then hit her up for a loan.  From which you could have paid her off and kept a little for yourself.  Then she would go around telling all her friends you were a paying client.

Tue, 07/21/2015 - 02:35 | 6335977 GoldIsMoney
GoldIsMoney's picture

There is no way to get richt through more an more debts.  I wrote it more then once.

Greece must cut all the unproductive work down, the have to ease investing as much as possible that means, that one can rely upon the fact that what's mine today will be mine tomorrow. That's where socialists fail regularly. So you'll see the producitve income will shrink the costs for the bureaucrats will stay and the expenses for social wellfare will rise. So the income goes down the expenses up. You can not get out of the debt trap with that situation.

 

I'm really fed up to see austerity discredited. The hell how stupd can one be. You can not get rich with expenses way higher than income.

Why don't you get that?

Tue, 07/21/2015 - 02:37 | 6335978 GoldIsMoney
GoldIsMoney's picture

And you seem to regret cash payments. Well so you are for banning of any cash?

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