Tags: Trump | Spain | Greece | Investment

Trump: Spain, Even Greece, Hold 'Great Opportunities' for Investing

Tuesday, 19 June 2012 08:51 AM

The eurozone may be doomed and countries like Greece may be shown the door out but investors should look for opportunities down the road, especially in Spanish properties, says real estate mogul Donald Trump.

Like the Miami real estate market, Spain tanked, though Miami's property market is showing signs of a nice recovery and Spain's will too, as German and other northern European snowbirds will soon be able to snap up attractively priced investments in the warmer Spain.

"The whole euro thing I think is eventually doomed. I can't see Germany bailing out other countries because the German people are hard-working people. If somebody wants to retire at 45 or 50, they're not going to have it, so I see, ultimately, a lot of these countries going back to their own currencies."

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

That, Trump says, translates into an amazing buying opportunity when it comes to real estate.

"Spain is a great country, it's got a lot of problems, too much debt very much like us, very much like this country, but what an opportunity," Trump says.

"Miami is the greatest example. Miami is booming and a few years ago it was a disaster area," Trump says.

Even Greece may harbor real estate investments down the road.

"I don't want to really suggest it, but somebody brought a project to me the other day in Greece."

"You're getting it for nothing, you're getting the land for nothing, you're getting everything for nothing. You have to sit with it for a while, but there are a lot of great opportunities in Europe, there's no question about it. "

Still, Spain takes front and center.

"Spain is an amazing place. It's a great country. It's got a fever and this is the time to take advantage of it. In five years all of a sudden the same apartments will be selling for a lot of money."

Should Spain revert to the peseta or Greece to the drachma, investors should interpret such a move as a green light to buy into local property markets.

"I really think that a lot of these countries are going to have to — maybe all of them in the end — they are going to end up going back to their currencies," Trump says.

While Greece has been the focal point of the European debt crisis, worries persist that the larger Spanish economy may be succumbing.

Borrowing costs in the country are soaring, with the yield on the 10-year Spanish note climbing above 7 percent, a level deemed unsustainable and a sign the country needs bailing out.

Eurozone finance ministers recently arranged the euro equivalent of $125 billion in rescue funding for the country to recapitalize its banks, but the lending facility adds to Spain's overall debt burden and worries continue to grow the country itself will need an overall sovereign rescue.

"(That Spain will need additional aid) is not a foregone conclusion, but lacking policy responses, I don't see any alternative. But, if you go for a full-fledged bailout, they [other European countries] very quickly run out of resources," says Antonio Garcia Pascual, an economist at Barclay's Capital, according to Reuters.

"If there are not sufficient funds, then what happens? A eurozone breakup? It's a possibility and the risk of it happening has increased."

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

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Tuesday, 19 June 2012 08:51 AM
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