Beware promises of "cheap Greek Property

Beware promises of 'cheap' Greek property
Comment: Speculators say there are good reasons to buy in Greece – ignoring the potential sting in the tail.

Greek tragedy: The price of property, even in hotspots like Santorini, may have further to fall Photo: Greece Sotheby's International Realty
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By Andrew Oxlade
1:35PM BST 25 Sep 2013
35 Comments
Falling house prices are likely to create some appetising opportunities for those with the means to buy.

Probably not here, where Britain's already inflated property market is to be ramped higher by hook or by crook, raising the risk of another bust.

No, these "bargains" are abroad. At least that's the reinvigorated sales pitch from the marketeers.

Consider Greece, where prices fell by 12pc last year and the same again in the first six months of this year. They are now 31pc below their peak. Crystal Investment Real Estate was last week extolling the reasons to buy now, aside from the "sun, sea and sand and an imperishable charm".

It points to a new tourism boom pepping up the economy and a generous new offer from the government to grant speedy five-year EU residence permits to those who buy homes worth more than €250,000. A Chinese man was the first to be fast-tracked last month. Most since then have gone to Russians and Ukranians. Expect a surge of similar buyers, says Crystal, especially when income yields are typically "9pc to 13pc".