Published on 21 March 2007 at 06:47 pm
Filed in Property News for Italy » Investment Diversification and Property in Italy
Italy’s property market is not seen by many as a place for investment diversification, rather it is considered to have an attractive if highly priced residential real estate sector that is of moderate interest, and that’s that for the majority of individual investors.
However, when it comes to investment diversification and property in Italy there is actually much to consider and much to be said for the commercial side of things, and if Italian legislators have their way and a type of REIT comes into play in Italy later this year then the whole market could be due a welcome and positive shake up.
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Many people believe that the process to purchase Italian real estate is dogged with red tape and confusion – and while the buying process does differ greatly from the British and American systems for example, in reality if you follow the guidelines laid out in this article ‘Buying Property in Italy- How it Works’ you shouldn’t go far wrong.
The first thing a property investor needs to do is determine which geographic areas of the nation best fulfil their requirements for a property bearing in mind the investor’s proposed method of profit – be that rental to tourists, rental to students, rental to professionals and executives or resale to holiday home hunters or those looking to move to Italy full time for example. Things to consider are the accessibility of the property, whether there are already or proposed to be nearby airports offering cheap flights from low cost carriers etc.
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Italy and France have one thing in common – it was popular to buy holiday and retirement homes in both nations long before the middle classes from affluent nations around the world decided that a second home was an essential purchase!
This means that Italian property has long enjoyed popularity from overseas buyers who have, unfortunately, inflated the prices of the most desirable properties in the most sought after areas almost beyond almost belief. The good news is that Italian real estate remains an incredibly attractive commodity to this day so profiting from property for sale in Italy is still possible despite it having some of the highest asking prices for simple rural properties in the world!
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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.
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