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Real Estate Investment Opportunities in Italy

posted 5 years ago

The turmoil that
Brexit has caused does not have to mean that commercial opportunities cannot be
seized where they arise. It might just be the best time to buy investment real
estate in Italy.  Italian house prices
are continuing to fall at such a rate that Italy alone out of all Europe has a
contracting real estate market leading the Financial Times to describe Italy’s
real estate market as “a notable EU outlier”. 
This situation is understandably fuelling discontent in the 72% of
Italian households that own their own property when they see the slide in
value. However, as in a great deal of declining situations, this presents an
opportunity for those investors who take the long view.

The banks are seeing
loans going bad to the tune of €173bn of bad debts and they are recovering
money by selling properties at auction. 
The shrewd investor could very easily obtain a significant reduction in
price by buying at auction.  There are
also a number of property schemes in Italy aimed at revitalising either an area
or the property itself which offer extremely good value for money to the
investor willing to put money into a property and wait a while for a return.

There are many
practically deserted villages all over Italy that have lost their populations
as young Italians have migrated to other countries to develop their experience
and skills.  Therefore, in an attempt to
revive swaths of rural areas across Italy, schemes whereby people prepared to
relocate and refurbish the properties in these idyllic bucolic settings are
able to buy properties for as little as one euro, in some cases.  The schemes require a minimum investment and
a commitment to living there.  Perfect as
retirement homes and also perfect for those young families wishing to bring
their children up in a rustic environment, with the added benefit of learning
another language.  It would be wise to
instruct an English speaking Italian lawyer to guide you through the process
and advise on the legal implications of the various types of scheme to find the
best type of investment to suit your purposes. 
Another consideration is that your investment property has the capacity
to provide an income.  Furthermore, the
wisdom of buying Italian real estate is that Italy is the third most popular tourist
destination in Europe, and the scope for deriving an income from the tourist
trade is almost guaranteed; this makes a compelling argument for investment.

A
property bought for the purpose of a straightforward holiday house or apartment
can provide a steady income throughout the spring, summer and into the early
autumn.  If you do not intend to relocate
you can manage your investment at long distance with the help of a good local
manager.  The running costs, maintenance, advertising as well as the
management fees should be able to be paid out of the rental income and provide
a small profit.  It would be wise to keep
a close eye on the enterprise however in case problems arise unnoticed. If, on
the other hand, you intend to relocate and manage the property yourself the
risk is largely dispersed. 

In
any event a shrewd move would be to retain the services of an Italian lawyer to
ensure that there are no breaches or regulatory or tax contraventions that are
overlooked; this would ensure that an absentee investor would have another
layer of protection against any unscrupulous or slack management of the
property.  The Italian real estate market
is unlikely to remain at such a low point for very long; this particularly
window of opportunity may vanish once the current turmoil has cleared.

For
further information about buying a property in Italy please contact [email protected]

 

 

 

 

 

 

 

 

 

 



Author

posted 6 days ago

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