La dolce vita
 Foreign buyers of property in Italy have traditionally been drawn to the rustic appeal of Tuscany and Umbria and the buzz of Rome, but there are plenty other options to explore
Published in Square Foot Magazine on August 1 2006
Italy has long been a hot destination for foreign property buyers, fuelled by a host of movies and books featuring idyllic rural scenes. Overall, prices have been increasing steadily: between 5 per cent and 10 per cent annually in the past couple of years. Foreign buyers are still drawn to Tuscany, which has, as a result, become very expensive - particularly in the "golden triangle" area between Florence and Siena. If you're willing to move slightly further away, you can find some good, cheaper options in Le Marche and in the Apennines in northern Tuscany and Emilia Romagna. Property prices can be 30 to 50 per cent cheaper in Le Marche and Umbria compared to the most expensive areas of Tuscany - and properties typically come with much more land. The Ligurian Riviera, the Veneto region and Rome are other popular choices. Lake Como is a much-visited tourist area, but it still has some good bargains for property investors. Buying for investment in the area (with a vibrant holiday rental market) has reportedly trebled in recent years. Further afield, the Abruzzo and Molise area in central Italy has scenic countryside. House and property prices in Abruzzo, with both mountain and sea appeal, can be between 30 per cent and 70 per cent cheaper than in Tuscany and Umbria, according to one agent. Further south, Puglia and Calabria are also worth considering. And while the islands of Sicily and Sardinia may have featured low on the list for foreign buyers in the past, they have inexpensive properties on offer and are attracting an increasing number of foreign buyers.
Why
- The property market in Italy is stable, with steady capital growth, although price rises of more than 22 per cent have been recorded in key areas;
- Depending on where you buy, Italian property still remains relatively affordable compared to that of Spain, Portugal and especially the UK;
- Italy offers a cultural and intellectual lifestyle, with plenty of arts, architecture and music to enjoy. In addition, many regions are exceptionally scenic, there is wonderful food and wine to be had, and leisure activities include anything from lazing on the beach in summer to skiing in winter;
- There has been a boom in the number of low-cost airlines servicing many regional airports in Italy, which has opened up new markets to foreign investors.
How
- There are no restrictions on non-residents buying property in Italy. The first step is to make a legally binding offer which, if the seller accepts, forms the basis of the contract, setting out the terms of the transaction, full details of the property, price, date of completion and conditions that must be met before completion;
- After the initial agreement, the buyer must secure financing and the seller must make sure that the title to the property is free of any encumbrances. At this stage, you have to pay the deposit, which can be anything from 10 per cent to 50 per cent of the purchase price. If you change your mind about the sale after this step, you'll forfeit the deposit.
- The final contract transfers ownership of the property from the seller to the buyer. The document is drawn up by a notary, who represents both parties and oversees the purchase process;
- As well as paying the balance for the property, the buyer must also pay purchase tax (this can be 4 per cent or 11 per cent, depending on your residence status), the notary fee (on signing the final contract) and the surveyor's fee.
Anything else
 Many older houses in various parts of Italy are renovators' dreams. Who can resist that quaint stone cottage set in poppy fields? Real-estate experts in Italy recommend that a buyer hires a surveyor (geometra) to check that the house complies with regulations, that all documents are up-to-date and legal and that the property has fully registered title. For your protection, make sure that your estate agent is registered with the Italian Chamber of Commerce, and get legal advice before you sign anything. The whole buying process can take up to six months to complete and it's common that the buyer moves into a residential property after the initial agreement is signed. Planning rules are strict and there can be red tape - particularly if you are planning to renovate. There are still huge differences between Italy's various regions, with the north traditionally far more prosperous than the south, and a thriving black market firmly in place. Prices are at a high after a few years of increases, but this doesn't justify the fact that properties for sale to foreigners are sometimes overpriced. Always evaluate the asking price in terms of its market context and similar properties in the area.
Who
PROPERTY AGENCIES
Property-abroad.com
http://www.property-abroad.com
+44 1429 233296
Real Point
www.realpointitaly.com
+44 (0)845 331 2812
La Dolce Vita
www.ladolcevita.com
+39 0583 050269
Homes in Italy
www.homesinitaly.co.uk
+44 (0)845 229 7057
LEGAL ADVICE
Offshore Real Estate & Investment Quarterly
http://www.escapeartist.com/OREQ14/Italy.html |
