Buying a cheap ruin to repair in Italy

Real estate investors' spending ability has been curbed following the current harsh economic climate, but the lure of investing in a home in Italy is still vibrant.

Therefore more and more foreign purchasers in Italy are aiming to renovate or even build from new rather than picking up resale property.

The primary reason is glaring – cost. Leave behind any notions of unearthing renovation projects for Euro 1, a publicity stunt launched a couple of years ago by one Sicilian mayor. Yet in sections of southern Italy such as Sicily, Abruzzo, Molise and Basilicata a countryside ruin can be bought for just Euro 8,500.

Add costs of restoration that can start from just Euro 750 a square metre and one can convert a broken-down farmhouse into a 90sq m longed-for vacation house for approximately Euro 90,000 – barely a fraction of the cost otherwise. In addition, other than the initial buying price, restoration costs can then be defrayed over the length of the building work, which can take as long as the buyers wish.

Stefania Russo, head of Italian real estate search experts The Property Organiser, explains:  With the credit crunch more and more buyers going down the renovation route. The costs in zones like Abruzzo are around Euro 800 a sq metre – around 50% what you would face in Tuscany. And rather than buyers having to stump up funds up front, this route lets them spread expenses over months or years.

"In addition, buyers get the option to stamp their personalised imprint on their homes, which is easier to do if they renovate than if they go for a resale and then try to adapt it."

The country's long history means it has a countless number of buildings from as far back as the 18th century, needing only some TLC to convert them into fantastic modern dwellings. Italy also has a rich supply of farmhouses – which tend to be the No1 choice of foreign househunters – in large part owing to the mass migration of millions of people who, in the 19th and early 20th centuries, left behind villages for towns and cities or even a new life further afield. By the by, if you are tempted by something a little different, the answer may lie in the approximately 5,500 religious buildings on the Italian property market and available to be refurbished into living accommodation.

Once you have chosen a property, the next stage is engaging the right professionals to turn your dream into reality. Some buyers are quite content to do the legwork themselves, the most advisable route is to pay a reputable geometra/surveyor (your property agent should be able to point you in the direction of with one).

They will be able to take on reliable workmen for you as well as deal with local government departments for the requisite work permits. Bear in mind that many old rustic properties are made of stone and as such renovating such homes calls for craftsmen practised in dealing with stone.

One frequently present danger with building projects such as this is that your outlay can fly out of control, often by as much as 20%. Common moneypits include pools  which can cost up to Euro 25,000); upgrading access roads  budget up to Euro 45 a metre); and working on lawns. However, your surveyor can insist on a contract with your construction workers outlining maximum expenditure in addition to an agreed completion date, with penalties charged if they are not stuck to.

Although surveyors design houses to a certain extent, their expertise only goes so far and it is a good idea also engage an architect to take charge of design. It goes without saying from the outset that you are abundantly clear what you visualise and that you pass this on to the architect. Brand-new ideas after work has started is time-consuming and frankly a pain in the derriere for the rest of your team.

Face up to the probable timescales involved. The purchasing procedure can last up to 12 weeks and sorting out building approval another 12-36 weeks depending on the local authority responsible.

 One last thing, unless you plan on being on-site for most of the time, you should also have an independent supervisor to act as your eyes and ears in your absence and help keep the work on schedule. Your architect or surveyor can also fulfil this role.

One project manager explains: "By dropping in frequently, often with no prior warning, we keep the buyer up to date with what is going on using fulsome dossiers and digital photos. So any problems can be resolved straight away. We maintain everything on track and, even more importantly, make sure the buyer isn't caught out by unpleasant surprises."

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About the author

The author is an expert in real estate in Italy at Homes and Villas Abroad. She also writes on Tuscany real estate and farmhouses for sale Italy.

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