If you are looking to invest in overseas property or simply searching for that second home abroad then buying property in Italy could be just what you’ve been looking for. Italy tends to be a favoured holiday destination for many of us Brits and it is not hard to see why. It has beautiful weather, cultured and cosmopolitan cities where fashion and the arts are high on the agenda.
Investment Property Partners overseas property buyers guide covers a number of important issues that you will need to consider if you are considering buying property in Italy either as an investment or as a second home abroad.
Italy’s beautiful weather, fascinating history and fashionable culture combine with its fabulous coastal regions where crystal clear waters and white sandy beaches are standard, it is easy to see why Italy is a highly desirable overseas destination for many – and that’s just the tip of the iceberg.
However, even though all the above make it a holiday no-brainer, what about its prospects for property investment?
What about Buying Property in Italy?
If you are considering buying property in Italy then the strength of any investment really depends on the location of the property itself.
Common sense will tell you that holiday rental rewards will be more fruitful in those desirable areas along the Italian coast or in the best, most beautiful cities.
Italy’s coastline is one of the most beautiful in the world and annually attracts millions of visitors from around the world, so the right location on the coast would certainly bring excellent rewards.
City locations such as Rome and Milan can also prove worthy of further investigation as these cosmopolitan centres also attract many visitors who want to sightsee and sample the history and culture of Italy.
How to Buy Property in Italy
Should you decide you want to pursue your dream of buying property in Italy, whether it be for investment or as a second home abroad, how should you go about it?
First and foremost it is recommended that you research as many areas of the country that you feel you can to find out which part of Italy best meets your own personal needs, investment criteria and will ultimately prove to be the most profitable for you.
You will need to get to grips with the Italian property market, understand how it works, and local property laws, rules and regulations.
You should also research property prices to get a good feel for how properties are selling, prices achieved, rental levels (if you are renting your property) both in Italy as a whole and in your target regions and cities.
Research is your Key to Success
If you are buying property in Italy carrying out detailed research can really help you to achieve your dreams.
It may sound obvious, but you would be surprised at how many aspiring property investors live to regret their property experiences simply because they jumped in and didn’t spend time familiarising themselves with the workings of their target property market.
It is vitally important that you spend time looking at lots of properties and comparing them against current sales prices, potential rental income etc. especially for those locations that interest you.
You should also search out and make contact with a local independent lawyer, preferably English speaking, so they are already in place when you eventually identify the property you want to buy.
The Italian Property Buying Process
Once you have the reviewed potential properties in your favoured locations, and weighed up the advantages and disadvantages of each, you will then no doubt end up with a short-list of a favourites that you’ll want to investigate further.
Buying property in Italy has its own format and you will need to understand the property buying process, or at least get some help before you do anything
Tax Identification Numbers for Property
One of the first steps that needs to be taken once you’ve got a property in mind is to get a tax identification number from the local Italian authorities.
This tax identification number is a unique property ID used in Italy that can be used by your lawyer to check that everything is as it should be with the property and that there are no outstanding debts or other unwanted surprises associated with the property.
Making your Offer to Buy the Property
Once everything has been checked out by your team of professionals and the property has had its usual surveys completed, so long as everything comes back positive, it should then be safe to make an offer to buy the property.
Always make sure you are one hundred per cent certain at this stage because this will commit you to the purchase of the property… if you pull-out of the purchase after this stage there will be financial consequences for the buyer.
In common with most countries, a ten per cent deposit will need to be paid at this stage if the offer is accepted.
Italian Property Law & Legal Documents
Once the property deal has been agreed in principal, a legally binding sale document will then need to be signed by both parties which will highlight the main basis of the transaction and the details with regards completion dates.
At this point, another payment of 20 – 30 per cent will need to be paid by the buyer.
Should the seller back out of the deal at this late stage the buyer will be normally be protected by the fact that the seller will have to pay back double the deposit.
Obviously if the buyer backs out, they will lose their deposit.
Rogito or the Final Contract of Sale
Under Italian law the third and final stage in the transfer of the property will see a final contract being signed by both parties.
This final contract in Italy is called a “Rogito” and will need to be signed in the presence of a notary who will issue deeds and will notify the Italian land registry as to the exchange of ownership.
The remaining money owed for the property must be paid by the buyer at this point.
Once these stages are completed and the money has been successfully transferred to the seller the sale is complete, and the buyer is the new owner.
Overseas Property Investment Solutions
As a leading independent property and land investment specialists Investment Property Partners offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.
If you are an investor searching for overseas property investment opportunities or a second home aboard please contact us today to discuss how Investment Property Partners can help you.
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