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Auctions & foreclosures start with real estate, hotels & 180 sheep

It’s done. Despite the famous Greek summer, as of tomorrow, June 1st 2016, it will rain auctions and foreclosures. The relevant Presidential Decree was signed and published in the Official Gazette. Apartments, villas, land plots, hotels, ships, helicopters and yachts but also 180 sheep and poultry farm equipment with 4 motors for manure will come under the hammer as of tomorrow. Protected until 1.1.2018 is only the primary residence worth up to 140,000 euro. KTG understands, the primary residence is protected even if it serves as guarantee for a business loan. 

What is odd for real estate owners though is that while property taxes are calculated on the basis of objective values, the auction price is based on commercial values. But this is surreal Greece in times of economic crisis: objective values are now higher that commercial values which were higher than the objective values before the crisis. Commercial values are said to have fallen by 50%-60% in the last 6 bailout years but “objective values were decreased by 20% in order to keep an eye on the budget revenues target of €2.65 billion,” so daily Ethnos.

The result is that while the state collects property taxes and any kind of fees based on the unreal and bloated objective value, the debtor sees his assets seized and auctioned much below the market value.

For example:

Apartment 183 sq m in noble Palio Psychiko suburb of northern Athens: debt €166,000 – Starting auction price: €22,050

Maisonette 467 sq m in noble Ekali, also northern Athens. Starting auction price €500,000. According to older estimations starting price was supposed to be €1,200,000

The price estimation is certified by a professional to be paid by the owner and not by the bank. Of course.

Auctions and foreclosures are a catch for investors but also for those wanting to start a new business and new career orientation.

For €10,800 starting price, one can buy 180 female sheep (ewe) of different colors and ages as their owner has a debt of €21.300. They were estimated for €90 each – total €16,200 -; the starting price is €60 per baaing ewe.

The equipment of a poultry farm comes under the hammer as well for a debt of €216,000. Feeders, drinkers, candlers and also 4 motors for chicken manure.

Lenders have been insisting on foreclosures from the very beginning, previous government had managed to delay the primary residence foreclosures. But foreclosures were only a matter of time and have been inevitable due to several banks recapitalization. Last April, lenders rejected the initial draft law that was supposed to protect primary residence up to €300,000. The ECB saw risks that protecting primary residences from foreclosures was going beyond protecting low-income debtors and could encourage strategic defaults.

At the end of negotiations in summer 2015, SYRIZA-ANEL government could only protect properties worth 140,000 euro and until a certain period of time.

PS to tell you the truth, I have little understanding for property loans by people who were living above their means. On the other hand, blame is also at the banks that were given loans without much of securities. It is really sad though, to see businesses go bust.

 

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6 comments

  1. Wow amazing deal! It will help property prices fall and of course protect primary residences for the vulnerable. I don’t feel sorry for people who have more than one house, thats a luxury these days!

  2. Giaourti Giaourtaki

    And what is about the amnesty for lynching banksters and hedgefunds aka “recapitalization” scum? No money for new prisons anyway. The poor rich idiots from abroad who’ll buy the shit will have fun with their neighbours and former owners now squatting their houses.

    • keeptalkinggreece

      they will get a visa :p

      • Giaourti Giaourtaki

        XaXa;)The conspiracy of dudes behind this doesn’t need visa, they are these thousands of civil “servants” in Brussels those whole motivation for killing Greece is their sea-sight villa with the former “Gastarbeiter”-owners as toilet-paper and we already have the business for this destruction but Greek dynamite will be polite and siga siga:

        You won’t believe how many of these are really pissed that they have only Greece left and not Tuscany or Mallorca, the houses in Tuscia are really too expensive for them, you know just like 100.000…

        • keeptalkinggreece

          yes, Tuscany + Mallorca would nicely complement Greek islands

          • Giaourti Giaourtaki

            Good places to study the enemy, while Italian islands are impossible for them, they are like fortresses, also German discounters try to invade “EU’s Arse”, they’ve made an analysis that most little supermarkets are familia run.
            Turkey has not enough islands to join the EU, btw
            May be you should consider about ticker on Thursday because Turkey is really pissed about the Bundestag and it’s planned genocide recognition, AKP-demonstrations in Berlin and German AKP-members on TV, while Erdogun is proud of killing 5000 in Kurdistan last year, the 1st year in Syria it were also 5000; Turkey is faster.