REAL ESTATE INVESTMENT
If you are looking for a place with historical charm to make a real estate investment, Italy could be perfect. Northern and central Italy have some areas with good prices.
With medieval towns and ancient architecture, Italian properties all have a certain quaint charm that is hard to find in other European countries.
Keep in mind the following if you’re considering buying a property in Italy:
BUYING A PROPERTY AND COMPLEXITY
The process of buying a property can be a complex one. Even Italians are wary of certain things when buying real estate.
There are many complications can could arise regarding taxes, scams, missteps, and fraud. Unfortunately, some people will try to scam buyers.
We would advise to seek assistance from a law firm or real estate agency. It’s always best to have the opinion of reliable professionals on hand.
Taxes in Italy are overall quite high. It’s best to have an adviser who can help you understand the laws and regulations, especially because real estate taxes are quite complicated and change often.
Having a professional involved will ensure that you pay the appropriate amount of taxes for your property.
In 2008, Italy suffered from a terrible financial crisis; one that they still have not recovered fully from. Poor political decisions made it harder for the country to move on from this rough patch.
This has not been great for real estate investments. Real estate investments in Italy aren’t really a thing except for buying your first home. 85% of Italians own homes.
ITALIAN FOCUSED MARKET
The Italian housing market is mainly focused on the internal market between Italian sellers and buyers.
Your return on investment will reflect this as an outsider. Cities like London and Paris have more foreign buyers coming in and making real estate prices higher but Italy is quite the opposite.
This, of course, comes with some exceptions. There are still many rich foreign buyers in very touristic areas of Italy.
These are the Amalfi Coast, Lake Como, Cinque Terre, Venice, Capri, and areas in the wine-producing countryside of Tuscany. Prices in these areas can be higher because of foreign investors.
MONETIZING YOUR INVESTMENT
If you want to monetize your investment in real estate, there are a number of ways to go about it.
For example you could buy a cheap property and renovate it and then sell it for much more than the original asking price.
You could also try renting. Milan and Rome have much higher rent prices than other areas of Italy. So, if you plan on renting your property for long periods, these are the two of the best places to buy in.
Additionally, you can try posting your property on AirBnb and rent it out as a vacation home.
This will probably lead to the most return on your investment.