If you are searching for a real estate investment with historic charm, Italy may be exactly the place to look! Northern and central Italy offer some areas with fair prices. Regions like Le Marche could be a better option than the more expensive wine countrysides of Umbria and Tuscany. With medieval towns and old architecture, the properties all have a level of quaint charm that is hard to match in other countries in Europe. There are certain points to keep in mind when thinking about buying a property in Italy. The following facts, of course have some exceptions. However, in a general sense, the following are important to know whether thinking about, starting, or continuing the process.
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 about taxes, tricks, missteps, and fraud. Unfortunately, many will try to scam buyers. It’s important to remain aware throughout the whole process and also 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.
Speaking of taxes, the system in Italy regarding real estate is part of a intricate over-arching taxation plan used to fund the municipalities. Taxes, in general, in Italy are quiete high. It’s best to have an advisor who can help you to understand the laws and regulations, especially because they can easily change and do often. Having a professional involved will ensure that you pay the appropriate amount on your piece of real estate.
In 2008, Italy suffered from a terrible financial crisis; one that they have not recovered fully from. The political influences have inhibited the country’s ability to move on from this rough patch. This has not helped in terms of real estate investments. Mainstream investment in Italy doesn’t exist except buying your home to live in. 85% of Italians own homes, meaning essentially everyone owns a home.
ITALIAN FOCUSED MARKET
The Italian market is mainly focused on the internal market between Italian sellers and buyers. Your return of investment will reflect this as an outsider. Cities like London and Paris have more foreign buyers coming in and playing into their market. Italy is quite the opposite.
This, of course, comes with its exceptions. Rich foreigners buyers focus more on tourist attractions such as the Amalfi Coast, Lake Como, Cinque Terre, Venice, Capri, and areas in the wine-country of Tuscany. Prices in these areas can be higher because of the foreign players.
MONETIZING YOUR INVESTMENT
If you’re searching to monetize your investment with a piece of real estate, there are a number of ways to go about it. Buying in a lower area and building the property up, selling for much higher than the original asking price is a way to “flip” the property. Milan and Rome have higher rent prices than other places in Italy. So, if you plan to rent the place out for long periods, these are the two best places to go. Taxes in Italy are very high, so this is becoming more and more challenging. Additionally, you can post the property on AirBnb, having your property serve as a vacation home rental. This will probably lead to the most return on your investment and exists in a very fluid market.