An Italian property expert suggests advice on how to safely buy a property in Italy and ensure you steer clear of some frequent pitfalls

Italian tax changes have reduced house purchasing costs by 10-15%. Allied to Italy's timeless appeal it means there has rarely been a better time to invest in the Italy real estate market. Yet as with any house-buying process, there are commonsense guidelines to follow to ensure buying your dream home doesn’t become a nightmare. Here are the 10 most important:

1) GET TO KNOW ITALY
Tuscany is Italy’s best-known region, attracting one in three visitors who comes to the country. It’s also its most expensive. Yet other areas such as Le Marche, Calabria and Abruzzo are far cheaper and also have the same heady mix of stupendous landscapes and azure-blue seas Try various locations to see what areas you like best. Ensure you are not too far from local amenities, unless you deliberately want to be in splendid isolation. And when it comes to viewing potential purchases, there is such a thing as too many. Trying to cram 60 into a weekend simply turns into an arduous marathon. By house No30, chances are you will struggle to recall much of what you have seen so far.
2) BUDGET REALISTICALLY
Yet Tuscany’s picture-postcard allure is undeniable, from the lush rolling hills, vineyards and olive groves of its countryside to historic appeal of its art cities such as Florence, Lucca and Siena. Buying here remains a gilt-edged investment. But bear in mind that apart from a few pockets, such as Garfagnana to the north of the region and Maremma to the south, most of Tuscany is not cheap and in highly sought-after areas such as Arezzo and Siena, you would be doing well to pick up a three-bedroom farmhouse for much less than US$750,000. In addition, don’t expect half-price bargains in Italy – discounts of around 10% remain typical.
3) FIND A RELIABLE AGENT
By law all estate agents must have a professional licence, qualification and indemnity insurance and be registered with their local chamber of commerce. Additionally, their website and other publicity material should show they belong to either the AICI (Italian Association of Estate Agents), FIMAA (Federation of Mediators and Agents) or FIAIP (Federation of Professional Estate Agents). When investing in a foreign country it's important to find professionals you can trust, so this is one occasion to be thankful for Italy's fastidious legal framework.
4) DON’T TAKE ON TOO MUCH
Don’t over-commit yourself. The idea of renovating a rustic ruin may sound romantic but are you prepared for the work and expense? Complete restorations can cost up to Euro 1,500 per sq m. Other common errors include buying property far bigger than you strictly need. A large farmhouse with pool and 5 hectares sounds fantastic, but don’t ignore the maintenance involved.
5) ENGAGE A LAWYER
Despite an unfamiliar legal system in an unfamiliar language, some foreign buyers cut corners by blustering their way through the process without a lawyer (avvocato).
The dangers are countless. First, many sign papers they do not understand and are then bound to an irrevocable legal commitment. Second, it means a number of vital checks that a good lawyer would carry out instead go ignored.
They include ensuring the vendor has a registered title and is legally authorised to sell. Where a property is jointly owned by a number of family members, all must agree to the sale And the property must have proper planning permission.
Also, Italian law means any loans, mortgages, utility bills, etc, relating to the house pass to the new owner, so a lawyer must ascertain no such charges remain.
Try to hire a reputable, independent English-speaking avvocato who comes recommended. Or consult a lawyers’ directory such as hg.org.
6) KNOW HOW THE SYSTEM WORKS
After a price is decided upon the purchaser makes a proposta irrevocabile with a downpayment of around 5% to remove the property from the market for around 15 days. If his surveyor and/or lawyer give the OK both sides sign a compromesso, in which buyer and seller fix a deadline to finalise the deal. A further sum is paid, taking the buyer's total downpayment to 25-30%. There are heavy penalties if either side pulls out at this stage. The final procedure is to sign the final deed of sale (atto di vendita) in a notary’s office, who scrutinises all paperwork and lodges them with the Land Registry.
7) KNOW YOUR ADDITIONAL COSTS
Taxes, fees, etc, add 7%-10% on top of the price of resale properties and 12-15% for new-builds. Expect around 3% to the realtor, US$210-280 per hour for a lawyer, US$700-2100 for a surveyor and US$2,800-7,000 for the notary.
For new-builds, there is 4% VAT if within 18 months you register for official Italian residency – a relatively straightforward process. Otherwise, 10%. For non-new-builds, the buyer pays 3% of cadastral value if residency is registered for within 18 months. Otherwise, 10% of cadastral value. Cadastral value – often far less than the purchase price – is assigned by the Land Registry based on factors such as floor area, number of rooms, etc.
8) USE A FOREX FIRM
Over 2009, Pound-Euro values plunged to £1/Euro 1.059 at their trough and hit £1/Euro 1.185 at their peak. That means buying a Euro 500,000 home would have cost a UK-based buyer £51,500 more at the start of the year than in summer. Hence the importance of using a specialist currency exchange company, who can fix rates for future deals to safeguard against currency fluctuations. They have far better rates than a bank and could in comparison save you some £16,000 on a £400,000 deal
9) THINK RENTAL
Will your property primarily be a holiday/retirement home or do you plan to rent it out at some stage? If so, proximity to transport hubs is vital. Aim for a maximum 1.5 hours from the nearest international airport. In big towns and cities, consider proximity to public transport as not all visitors will have access to a vehicle. Villas and apartments near a beach always have superb rental potential and keep their investment value over time because of restrictions on additional building by the coastline.
10 MAKE AN EFFORT WITH THE LINGO
Give Italian your best shot. Remember that unlike parts of Northern Europe, a mere 28% of Italy speaks English, one of the lowest ratios on the continent. Don’t be afraid to embarrass yourself as your efforts, no matter how gauche, will endear you to locals.

The author writes for property for sale in Italy specialists Homes and Villas Abroad, who showcase 2,500 Italian properties. Her other specialist areas include Sicily property and Calabria property

ArticleSource: ArticlesAlley.com

Additional articles about Real estate

About the author

Please Rate This Article

Number of ratings: 0
Rating: 0

Articles Area

Guidelines

An Italian property expert suggests advice on how to safely buy a property in Italy and ensure you steer clear of some frequent pitfalls