Otherwise, you may skip straight to our 10 pitfalls to avoid, below: Look around One would be amazed at the number of people who head off on cheap and cheerful inspection tours and buy on the spot, only to decide three months later they don’t like the area. Reading Time: 3 minutes Buying an Italian property should be an exciting process, but it can also be complex. Mortgage tax in Italy tends to be about 2% of the loan amount, and on top of this, many banks also require buyers to take out certain types of insurance. 3. Hidden commissions negotiated between an agent or intermediary and the vendor (in most cases a developer) are arguably the most costly pitfall when purchasing property. How to Buy Property in Italy. Properties within easy access of principal attractions also rent better. You can learn more about foreign exchange at www.forexfloor.com. Therefore, keep in mind that you need to add a minimum of 10% of expenses to the total property price. When it comes to non Italian buyers, it’s a trickle rather than a flow. What property is right for you? As with buying property elsewhere, how much deposit you’ll need to pay depends on your individual circumstances, though lending conditions in Portugal have become more stringent since the financial crisis so you could require a minimum of 20%, especially if you’re a new resident. Instruct an independent lawyer; Instructing an independent lawyer (meaning a lawyer who is completely separate from the estate agent, developer or seller) is one of the most important parts of the process of buying a property abroad. Buying a property in Italy should be a pleasurable experience and there is no reason why it should not be. It’s easy to fall in love with a property and forget about the little details like where you will buy your food or … When you finally find your dream home in Italy, be sure you don’t make the mistake of not seeking professional help to close the deal. Common pitfalls to avoid when buying property. Being led a merry dance But there are also countries where getting a mortgage can be very challenging if you’re a foreigner. 5 Common Pitfalls To Avoid When Buying Overseas Rental Property. Total Buying Abroad can also help by recommending various French property professionals such as independent English-speaking French lawyers, estate agents in France, currency specialists (and many more!) Barry Lillie | Fri, 02/28/2014 - 03:00. The Italian business and commercial sector can be over-burdened with regulation at times, but this is one occasion to be thankful that it is. Sicily’s divided into nine main divisions, each with its own character. It is so important that you plan your property purchase carefully. Taxes and fees. There are exceptions, for instance, Cortona and Chianti in Tuscany. Buying a property in Italy should be a pleasurable experience and there is no reason why it should not be. Rental properties in cities like Rome and Milan go at a premium and even the smallest, one-bedroom apartments are expensive to rent. In Italy, property is often owned by the whole family, especially if it has been inherited. Visit at different times of year Some resorts are very seasonal – lively and full of people in summer, virtual ghost towns in winter. We’ve heard of buyers trying to see 40 properties in four or five days. Every year, hundreds of expats pack up their things and head off to get a slice of la dolce vita. Buying a dream home in Italy has rarely been easier or more desirable, especially with the pound strengthening against the Euro, Italian taxation changes that have made the buying process cheaper and falling property prices. I am currently selling a 70 m2 apartment in a renovated stone hamlet with a swimming pool, 4 km from Radda in Chianti, in the heart of the Chianti Classico wine producing area in Tuscany. Once you have found the property you like, the buying proposal, a document prepared in Italian and English, will take it off the market for two to four weeks. Those homes in Italy costing 1 dollar (roughly 1 euro) are still for sale. Water supply in Italy. Is there any evidence of a well worn track leading across the land? The buying process One factor worth considering if you are buying property as an investment is Italy's shrinking population. An Italian bank account is needed to purchase the property (it’s required to pay the balance to the owner of the property with Italian means), to pay the bills of the utilities, taxes etc. Buying a property abroad can be fraught with expensive pitfalls, yet for such a big decision it's one that is often taken lightly. If you’re planning to purchase a property without a mortgage and just with a cash payment, but the documents of the property are not all in order, then depending on the extent of the problems to be solved, things could take around 6 months. The process of buying a property in Spain is straightforward but is markedly different to the process in the UK. A lawyer will also help you sign all the relevant documents, especially if you don’t speak fluent Italian. They can offer fixed rates for future transactions to safeguard against possible falls in the value of sterling. The pros of living in France Proven property market. Six Things to Consider Before Buying a Property in Italy. This group is primary a place for information about the purchase process. Buying an Italian property: how to avoid pitfalls. If you plan on using your property solely as a summer home, that won’t matter much. Rental potential If you plan to let out your property, vicinity to transport hubs is crucial – especially if you are targeting foreigners rather than Italians. Appointing a lawyer who specialises in property is of paramount importance. More articles. Little known to tourists and those looking to invest in property in Italy; Calabria offers a glimpse into a different Italy, as does the property in Calabria. They must be registered at the Chamber of Commerce of the province where the business is located. In the sections below you will find an overview of the most important aspects that you need to be aware of when buying a property in Spain. The guide will help you to: Ask the right questions Avoid losing money Avoid the legal pitfalls Move in successfully. Although this happens less in Italy nowadays, it hasn’t completely disappeared, but it should be strongly declined by any potential buyer. The best way to protect your investment when buying an Italian property is to engage an English-speaking Italian lawyer. On a typical £250,000 exchange, they could save you up to £10,000 compared with bank rates. Instructing an independent, English-speaking Italian lawyer could … Are there any loans, mortgages or third-party claims on the mortgage? Even if you’re only going to be using your home for a couple of weeks of the year, bear in mind not everyone speaks English. Lisa and Sam Chiodo have done more than dream about buying European property. Find out early exactly who – and how many people – own the property you are buying. The buying process Therefore, it is extremely important to get to grips with the fundamental differences between buying property in Italy and other countries, in order to help foreign buyers avoid potential problems and mistakes. This is why Sicily has long been a favourite holiday home destination with Northern Italians. Many people dream of buying a property abroad for holidays or retirement, but mistakes can be costly. But even if only they intend to stay for a while, expats often find that buying property in Italy is more advantageous than renting. Beware pitfalls in buying overseas property. GLOBAL RESIDENTIAL MARKETS REPORT Q3 2020 - Global Property Guide UAE Housing Market Q3 2020 - Cavendish Maxwell However, as the travel connections with the mainland are improving, the numbers of those interested in property investment are growing. Ten tips from a frustrated English family who after buying their Italian farm had to wait 15 months until all the formalities had been completed . Expat buyers in Italy are often put off buying a property that is advertised by a real estate agency due to yet more fees and an infamously unfriendly sales approach. Sorry, comments for this entry are closed at this time. Any plans to build a motorway 100 yards away? By: Jeremy Davies Published: 19 April 2004 Be the first to comment. In Italy, property is often owned by the whole family, especially if it has been inherited. The last thing you want is to be taken for a ride by some cowboy or well-meaning but incompetent amateur. Are they clearly marked by fences, hedges or walls? 2. Nothing could be more idyllic. There are many pitfalls that can turn your dream property into a nightmare and it’s essential you have someone local, and experienced, in your corner. It’s easy to fall in love with a property and forget about the little details like where you will buy your food or whether you’ll be happy living in this community. Dedicate time to search properly If you’re coming to Italy to look at a number of properties, set aside an adequate amount of time to do so. The notary must see to this when the transaction is completed and the new owner receives the property. Here’s a small guide. And although there are some relatively cheap areas of Tuscany, such as the Maremma, in the south, by and large €50,000 will not buy you a perfectly finished three-bedroom house set in a couple of acres. However, by avoiding agencies, you may miss out on the property of your dreams, not to mention that agencies can be very helpful when it comes to price negotiating and getting your way round all the legal documents you’ll need to purchase property. The fees associated with buying a property in Italy are among the highest in Europe and may include registration tax, land registry tax, value added tax (VAT), a notary’s fees and estate agent’s fees, mortgage fees and legal fees, as detailed below. I highly recommend getting professional help when you buy a property here. Whether you are thinking of buying a property in Spain, Italy, France, or Portugal, avoid the pitfalls of buying abroad with these 5 Top Tips!. 2. We can recommend the independent legal department at Italian property search specialists The Property Organiser. Considering a purchase of property in Italy? Mortgage rates are at historic lows in Italy but this doesn’t mean that they come without extra fees and charges to consider. Whilst it is not tricky as buying one and it is very important to pay attention to specific aspects. And by apartment No25, can you remember anything of the first dozen that you saw? However, it is important to understand that there are likely to be some fundamental differences between the legal system in Italy and that of other countries. Read more. Not appointing a property lawyer. If you are new to the process, we suggest you look at our informative guide to the buying process in Italy. In the Italian property market, it has been highly normal practice over the years to declare a lower price in the title deeds of a property than the price actually being paid. Here you will find free information and guidance to bring your French property dream to life. In a ski or beach resort, you ideally want to be walking distance away from the pistes and sea. Without a lawyer, all very common traps waiting to ensnare the unwary buyer. These things are necessary and useful, but by no means cheap, making it important to do research so that you can get the best mortgage for your situation. The Euro-sterling rate, for instance, has over the course of a year veered between a high of €1.29/£1 and a low of €1.02/£1. Instructing an independent, English-speaking Italian lawyer could … If you are prepared to consider other parts of Italy, however, such as Calabria, Abruzzo and Sicily, you may be able to find what you are after well within that budget. Planning is therefore key to avoid unnecessary delays but in general, be expected to wait longer than you may in other countries. But with high demand come high prices. It will be necessary to contact a surveyor to thoroughly check the condition of the house and a lawyer to check all the legal conditions of the sale. Being led a merry dance Sicilian property prices are 35% lower now in 2019 comp… Buying a property abroad can be fraught with expensive pitfalls, yet for such a big decision it’s one that is often taken lightly. About the Author. Homes and Villas Abroad Blog is proudly powered by, 10 pitfalls to avoid when buying a property in Italy, Why now is the ideal time to invest in Italian property, Italian property group eyes prestige London buildings, Four key foreign exchange tips for buying a home in Italy, Italian homes are tops for Brits in new property-swap fad, Italy real estate: Home with pool tops women’s wishlist, Foreigners’ budgets rise in Italy real estate sector, Brad Pitt and Angelina Jolie’s new €30m Italy mansion. It is so important that you plan your property purchase carefully. Be realistic Historically, Tuscany has always been the top destination of people coming to buy property in Italy – a trend exacerbated by Frances’ Mayes 1990s bestseller-cum-film Under The Tuscan Sun, about her property adventures in the picturesque hilltown of Cortona. One of the best things you can do from the outset is to learn from other people’s mistakes. 7. While the pros far outweigh the cons, the team at Home Hunts has put a list together covering what we think are the major advantages and disadvantages of living in France. In Italy, according to various international studies, we do not have a financial culture. Selling your Italian property it is a quite complex process. Foreign exchange Ignore exchange rate fluctuations at your peril. Haunted by memories of more illustrious times when it was the site of rich and powerful Greek colonies, the architecture of property in Calabria often reflects such curiosities as Greek speaking villages and an Albanian community dating back 500 years. Many people forget that at the price of the property you have to add about 10% for the expenses. Whatever you do, do not sign any document without proper legal advice. All estate agents must be professionally qualified and licensed, registered with their local chambers of commerce and must hold indemnity insurance. Press • Oct 12, 2017. On the other side of the coin, don’t cram in too many viewings. Buying a property in Italy should be a pleasurable experience and there is no reason why it should not be. The best way to protect your investment when buying an Italian property is to engage an English-speaking Italian lawyer. For many, buying property in Italy is a lifelong dream. 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