Published on 31 October 2006 at 10:45 am
Filed under: Europe:- Italy Property Guides » Italy: Interesting Things about Italy for Property Investors
Italy is quite possibly unique as a nation because it conjures up such vivid images of stunning countryside, such passionate feelings about the language, the wine, the food and the beautiful people and because despite having some of the highest rural property prices in Europe in regions such as Tuscany and Umbria it is still possible to profit from property in Italy…here are the most interesting things about Italy for property investors.
Italy attracts a wealthier, more discerning international tourist and second home hunter meaning that despite the scary property prices it is still possible to generate a decent rental yield and to add sufficient value to certain real estate to create a capital gain upon resale…the key is locating the right property for the right selling price and in Italy this is not as straightforward as approaching an estate agent.
Estate agents in Italy represent and charge the buyer and the vendor, they make about 6% from each party and as a result it is a lucrative business to be in. Estate agents do have to be professionally qualified and registered with the local Italian Chamber of Commerce at least, but most who have bought property in Italy would advise potential purchasers to steer well clear of them!
Naturally enough a good estate agent can make the buying process far more smooth and simple for investors without the time or patience to navigate the depth of red tape associated with the legalities of buying property in Italy but they can reduce the profit margins significantly as quite often they have a restricted and limited amount of property on their books anyway…the choice of whether to use an estate agent is personal.
An alternative way of finding out about attractive properties for sale is through word of mouth – and once a potentially desirable property has been found it is up to the buyer to negotiate gently but firmly to get as good a deal as possible.
Whatever region an investor prefers – and there are advantages and disadvantages to all – the absolute key to securing a property that will rent and resell well is finding an older home with character or which has potential for character! No one in Italy wants modern, soulless property – you will be wasting your time and money buying an off plan property unless you buy a modern apartment right in the heart of the major commercial cities – and even then a well renovated older property will be more desirable to more people.
Finally, there are parts of Italy that still represent good value for money but many of them are inaccessible and an investor has to be aware of this fact when considering making an investment – if the property is to be resold then this isn’t necessarily as much of a problem as if it is to be let out.
Europe:- Italy Property Reports
Complete listing of all current property reports for region: Europe:- Italy
