RSS
Showing posts with label property in italy. Show all posts
Showing posts with label property in italy. Show all posts

Italy Property - Guide to Buying a Property in Italy

Labels: , , , , , , , ,

Author: Les Calvert

The Italian Property Market

An increasing number of foreign nationals have taken to purchasing real estate in Italy over the course of the past fifteen years. The increase in real estate purchases in Italy by foreign nationals really took off following the integration of Europe into the EU. With the advent of the European Union, more and more foreign nationals began purchasing different types of real estate within Italy. This included commercial, residential and speculative investment purchases by foreign nationals.

The vast majority of foreign nationals who have taken to purchasing and owning real estate in Italy are from within one or another of the European Union nations. With that said, British investors have been particularly active in buying and investing in real estate in Italy during the past five to ten years.

The prime real estate purchases in Italy by foreign nationals in recent years have been concentrated fairly heavily in rural regions of the country

Investment Property in Italy

As with the other nations that are members of the European Union, Italy has seen a growth in the number of foreign nationals making real estate purchases within that country since the inception of the EU. The common marketplace that was formed with the development of the EU is deemed to be the primary reason as to why there is so much activity in the arena of real estate buying and selling in EU nations such as Italy.

A significant amount of the movement in regard to real estate in Italy involves the buying and selling of property for investment purposes. A significant amount of activity when it comes to investment real estate has involved two primary types of property: commercial or industrial property as well multi-family properties that are used for residential and vacation purposes.

There are no real restrictions on foreign nationals purchasing real estate in Italy beyond a bit higher purchase registration tax that will be discussed later. This holds true for investment real estate as well as other types of real property in Italy.

Residential Real Estate in Italy - Single Family Properties

The biggest rush of selling when it comes to residential property has occurred outside some of the major cities in Rome. Many foreign nationals have involved themselves in this particular buying spree. Indeed, particularly people from the EU have actively made the purchase of homes and villas in rural areas of Italy to be used as second homes.

These people maintain that they are attracted to the easy going and relaxing lifestyle of life in rural Italy. (There have been some motion pictures in recent years set in such environments that many real estate experts in Italy maintain have further spurred the sales of rural residences in the Italian countryside.)

Residential Real Estate in Italy - Apartments in Italy

When it comes to finding private residences in the larger cities in Italy, apartments remain one of the most popular types of residential property bought and sold in the 21st century. Take for example the city of Rome. Apartments remain one of the most often conveyed forms of real property within the Italian capital city. (Of course, the limited amount of living space and the ever growing population of Rome have combined to make apartments invaluable residential assets in that city.)

Many foreign nationals have invested in apartments in the more major Roman cities over the course of the past decade for two primary reasons. First, these apartments are allowing these foreign nationals a second and oftentimes more affordable residence in one or another of the Roman major cities for their own purposes. Second, many people from other nations are making the purchase of these apartments in the larger cities in Italy to then be let or rented to other individuals.

Generally speaking, these investors who are purchasing apartments in Italy are renting to people who will be in Italy for an extended period of time on business. In the alternative, they are renting these apartments to individuals and families who have elected to spend an extended period of time in Italy, in one of the major Italian cities, on holiday.

Holiday Property in Italy

Vacation real estate remains a proverbial hot property in Italy at the present time. The demand for real estate in the major resort communities in Italy have sent the costs of real estate in those communities through the roof. With that said, many of the more healed foreign nationals continue to attempt to make the purchase of nicely situated real estate in the resort communities in Italy.

One of the other areas in which vacation real estate is selling at a brisk pace is in some of the more rural spots in Italy. As mentioned previously, many foreign nationals are taking to purchasing real estate and graceful homes in rural parts of Italy to be used for their second homes. Likewise, many foreign nationals are purchasing real estate in more remote and rural areas of Italy for use on family or other types of vacations and holidays.

In addition to using these properties for their own personal holiday or vacation purposes, many of these same foreign nationals are leasing these properties to other foreign nationals during those times of the year in which these owners are not occupying the properties themselves. As a consequence, many of these foreign nationals have been able to make their vacation properties pay for themselves. Indeed, there are some foreign nationals who have gone so far as to purchase more than one residential property in different locations in Italy. These individuals will use one or another of these residences at different times during the year and let them out to others the remainder of the time. These individuals have found this type of investment to be profitable.

Specific steps to buying real estate property in Italy

The real estate sales and purchasing process in Italy is fairly streamlined and not particularly complex. For the most part, a foreign national stands in the same shoes as does an Italian citizen, with one exception. When it comes to the purchase of real property in Italy, a foreign national must pay a 11% purchase registration tax after the sale itself is consummated. An Italian citizen must only pay a 4% purchase registration tax.

In Italy, the first step towards the purchase of real estate is the initial agreement between the parties. Once the initial agreement is signed and executed, there are some primary tasks that must be completed by the parties. For example, the buyer must obtain appropriate and sufficient financing. The seller must work to make certain that title to the property is free and clear of any and all encumbrances so that it can be conveyed to the buyer.

When this initial agreement is signed, the seller will post a deposit in the amount of at least 10% of the total purchase price of the real estate being sold. It is not uncommon in Italy for deposits to run as high as 50% of the overall purchase price of the property. Deposits in Italy tend to be higher than what is seen in many other countries around the world.

Generally speaking, the deposit is not refundable if the buyer simply decides that he or she does not want to buy the property. Indeed, the only real circumstances in which a buyer can obtain a refund of the deposit -- even a hefty deposit of upwards to 50% of the purchase price -- is when the buyer backs out of the deal or in circumstances when clear title to the real estate cannot be obtained within the time set forth in the initial agreement between the parties.

The real estate purchase process is overseen by a notary in Italy. The notary actually has more duties than is normally associated with a notary involved in real estate transactions in other countries the world over. For example, the notary in Italy is responsible for carrying out title searches to work to make certain that the title to the property is free and clear of any obvious defects or liens.

Many real estate experts in Italy recommend that a purchaser take the time to hire what is known as a geometra. The geometra will survey the physical boundaries of the property for sale to make sure that it actually does comport with what is listed on the legal description that is subject to a contract for sale. (These experts maintain that this particularly is important when it comes to older properties in Italy.)

The real estate purchasing process can take upwards to six months to complete in Italy. For this reason, unlike in many other countries around the world, it is a commonplace occurrence for a purchaser to move into residential property after the initial agreement is signed. In most countries around the world, the purchaser does not take possession of the property until the final agreement is executed and the deed to the property is transferred from the seller to the buyer

Property Abroad always recommends using a Solicitor or Lawyer.

Article Source: http://www.articlesbase.com/real-estate-articles/italy-property-guide-to-buying-a-property-in-italy-263310.html


About the Author

Property Abroad's directory Les Calvert writes interesting and useful articles on all subjects dealing with overseas investment property and buying property in Italy. Visit their website to view their properties for sale in Italy as well as property in Tuscany, Umbria and Puglia.

Read User's Comments(0)
Posted by Frequent Traveler

An Investors Guide To Italy

Labels: , , , , , , , , , , ,

Italy, a founder member of the EU, is a relatively young country which was only unified as a nation in 1861. It has land borders with Austria, France, San Marino, Slovenia, and Switzerland while the Vatican City is a separate state within Rome. The country's long coastline, stretching some 7,600km, has contributed to problems with immigration control. Besides deep rooted problems, such as the need to import most raw materials, the country is also plagued by corruption and crime.

The economy is divided by the industrial north and less developed and poorer agricultural south. The latest OECD report assessment of the country reported that exports and investment activity rose markedly in the first half of 2004, ending a protracted slump. GDP growth of between 1.5 per cent and to 2 per cent was forecast for 2005-06 although 'inflation could start to rise again'. As in much of Europe, property prices have been rising. According to the Royal Institution of Chartered Surveyor's European Housing Review 2005, the housing market has been on 'a sustained upward swing for five years' (following a seven year period of recession in which prices fell by over 20 per cent). Last year 'agents were reporting that market activity was still brisk - although it had fallen below its peak'.

Most Italian property is sold as freehold although Italian property law recognises various other property rights and tenures. Usufruct is a right to use the property of another for a fixed period but not to change its nature. Leasehold rights, which may be for a fixed period of 20 years or more or in perpetuity, allow the lessor to use the property as if he or she were the owner, subject to a requirement to improve the land and pay a rent. Building rights entitle the holder to construct a building on land belonging to a third party, or maintain a building standing on land belonging to a third party.

Building rights may be for a limited or unlimited period of time, but if for a fixed period, ownership of the building reverts to the owner of the land on their expiry. Italian property transfer processes have some similarities to France. Based on land registration, the state regulated process involves both purchaser and seller using the same state appointed notary to complete the transaction. The process begins with a formal and nominally binding offer to purchase arranged through an estate agent. If accepted during the set period of the offer, this is followed by a preliminary contract signed by both parties (at which point a deposit will be paid). Finally comes formal completion.

The notary, in front of whom the completion documents must be signed, will verify that the documentation is correct, that the property is free from registered encumbrances and checks the identities of the parties involved. Searches beyond what is included in the registry are unlikely to be exhaustive. The notary also collects the taxes and duties involved. These vary between Non-resident property purchasers are treated differently to resident purchasers in a number of ways. In particular they will be obliged to pay higher registration fees, although residence can be claimed within a fixed time subsequent to the purchase.

Total fees and charges are likely to amount to between 5 per cent and 20 per cent, including estate agents fee, if applicable, registration fees or VAT if a new property, and the notary's fee. Fees in the order of 8 to 10 per cent are also payable on sale of a property. Some charges are based on the registered value of the property, which is likely to be less that the actual purchase price. This also applies to local property taxes, the amount of which varies from region to region. The Imposta Comunale surgli Immobili is paid by both resident and non resident owners - although the amount is halved for property that is not habitable. In addition there are likely to be charges for local services.

Italian taxation is undergoing reform. From the start of 2005 personal tax rates have been set on a graduating scale ranging from 23 per cent to 39 per cent, with a 4 per cent supplement for income in excess of 100,000 euro. Property owners are obliged to file annual tax returns but are only taxable on income arising in Italy. However, there tax is levied on the notional rental value of the property (based on its registered value) whether or not it is rented out. Both residents and non-resident property owners are subject to Italian inheritance law and tax. But the good news is that currently there is no capital gains tax to pay on property gains.

Read User's Comments(0)
Posted by Selena Jateli

A Guidline on Restoration Properties in Italy

Labels: , , , , , , , , , ,

Undertaking a renovation project in Italy can be very challenging but can also be plenty of satisfaction. Putting your own sign on a property to restore means to bring back to life a home and it is also very important to keep the region's architectural traditions, resulting into a home that reflects your own identity and expectations and at the same time can also fit into its natural surroundings. Restoring is not for everyone, it means time and money. Undertaking a restoration project, of course, is time and energy consuming. For a standard home, assuming the building structure is sound, a complete renovation with a supervision service takes between 6 months and a year.

A good way to save money is to do some of the physical restoration work yourself, but before starting to restore a home make sure you have the necessary technical skills, in order to avoid expensive setbacks, loss of time and poor results. For example, could you restore the roof of your Italian ruin by yourself? Are you able to check the condition of the existing foundations? Don't worry, in case you need some help you can always ask your Italian Real Estate Agency, which usually works with a network of selected partners and professionals, such as architects (Architetto) or Geometra (surveyors), which you must have to sign any restoration projects. We suggest you use an architect, especially if you have particular requests to realize your dream home. However, the use of a Geometra is usually enough to satisfy any standard needs.

The expenses of restoration for an Italian property depend on several factors, mainly on the size, on the structural conditions of the house to renovate and on the quality of materials that you choose. Italy has a very wide variety of great materials and a long tradition of their skilful use. If you have a generous budget, you can restore your dream home using local traditional materials like terracotta floors, wooden beams, travertine, etc. If you have a more modest budget, you can use medium-priced materials that still have very good standards and will allow you to have a high-quality result.

Labour costs and sometimes even prices of materials vary from one region to another. For example costs in Tuscany can go from €1000/1500 per square metre for a renovation that keeps original features using standard quality materials, to €2000/2500 using luxury materials. Umbria is a bit less expensive and prices go from €1200 to €1400 per sq. m.; Sardinia from €700 to €1000, about €1000 are needed in Liguria, from €700 to €1500 in Le Marche and from €400 to €750 per square metre for a restoration in Sicily.

You should also be aware that renovation estimates usually refer to building work alone and do not include plumbing, electrician's fees or finishing costs. You should ask for these separately or at least ask whether they are included. Moreover, a good way to avoid contingencies putting you over your budget, is to choose a property with an agreed fixed-price contract on its restoration work. Finally, you can obviously save a considerable amount of money in the long-term by following the principles of green building that is energy efficient and environmentally friendly. 

Green building incurs higher initial costs, but will save you money in the long run and will reduce the overall impact on the environment. To give you an idea, a restoration using green-building materials that incurs a 15/20 per cent increase in costs on normal restoration, can save you up to 50/60 per cent on utility bills; whereas if we consider reconstruction with an upfront investment of 30% more, you can almost forget your bills and save in the region of 90%. At any rate, once the project of your restoration property is done, you will be for sure the proud owner of an Italian home that fully reflects your taste and your identity.

Read User's Comments(0)
Posted by Selena Jateli
Subscribe to: Posts (Atom)