“This predicted stock market sell-off and the resulting drop in prices will, of course, create an important buying opportunity, especially for investors with a longer-term perspective,” Nigel Green, founder and chief executive of deVere Group, said in a release to CREW
“With negotiations potentially taking an extended period of time, the uncertainty is likely to be protracted, meaning the sell-off and buying opportunity could also last some time – unlike last week when markets bounced back quickly.”
The CEO’s remarks follow Greece’s overwhelming rejection for European austerity, which will force international creditors to press for new proposals. Finance ministers across Europe are meeting this week to talk about the impact, while the European Central Bank decided not to expand an emergency assistance program Monday, a move designed to put more pressure on Greek banks.
Now Greeks must seek a bargain before the money runs out within days, which would likely force them off the euro.
The current situation has many likening the climate in Greece as a ‘Lehman’ moment, when the U.S. banks crashed in 2008; however, with the debt solely on the backs of European governments, the outcome is still uncertain.
That period of uncertainty is creating optimism in the eyes of some, but other investors are taking their time to assess the impacts before diving into the property market.
The latest stats from the Global Property Guide show a -0.57 per cent decline in house prices year over year. Overall, prices have declined steadily since 2009.
“The NO vote is actually the worse of the two downside scenarios. The wait-and-see horizon is much longer now,” Luis Limgenco, a real estate investor considering opportunities in the Mediterranean country, told CREW
“Greece is currently very cheap and if you look at the statistics, buying a property today in Greece is like buying at year 2000 prices. But it’s a risky move right now.”
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Greece’s move to reject European creditors with its decision to vote ‘NO’ against austerity could present an important buying opportunity for investors, according to an industry CEO.