2020 may prove to be an excellent year to buy real estate in Italy for a number of reasons.
Prices of real estate in Italy are favorable
According to Eurostat, a Directorate-General of the European Commission, since 2007 Italy has suffered from a contracting real estate market. Currently there seems to be no stopping this slow decline. It means that house prices are as low as they have been for a number of years.
As is frequently observed, a declining economic situation can often present a significant opportunity. In the case of the Italian housing market, 2020 is looking like a good year to acquire a property in Italy. In fact, it could be wise to take advantage of the current situation in the housing market in Italy as banks and other financial institutions are not likely to leave this situation to stagnate further.
Also of interest is that currently many Italian banks are attempting to recover what they can from defaulting mortgages by auctioning off residential properties at low prices. Consequently there is an excellent prospect of obtaining a prestigious property at an extremely advantageous price. Obviously not everyone feels comfortable taking part in auctions. But at Italian House Hunters we can help you find an English-speaking Italian “go between” who can give you good advice and even take part in the auction in your place.
So where to look? High-end residential real estate is at an all-time low virtually throughout the country, with particular bargains along the Adriatic coast and in southern Italy. Older properties in need of renovation are real bargains at this time.
In fact, if you are considering buying real estate in Italy, at Italian House Hunters we would recommend acting fairly fast as we think that this window of opportunity might soon begin to close a little.
Italian mortgage interest rates are continuing to fall
Non-Italian residents are allowed to get mortgages to purchase or renovate an Italian property. Loans of up to 60% of property value may be possible. A number of costs are involved – and we can explain them all to you. The good news is that mortgage interest rates in Italy have steadily fallen from an average of 3.68% in 2013 to 2.32% in December 2017, and by December 2019 rates can be found as low as 1.8%. So now is a good time to request a mortgage to enable you to purchase real estate in Italy.
Buying real estate in Italy is a safe investment
The International Money Fund (IMF) is warning over a housing bubble risk in certain emerging countries, such as China and Brazil, as well as Australia, Canada, Norway and UK. This is due to their overpriced property market and the low interest rates applied by their central banks. This is not the case with Italy, which is considered by the IMF to be a safe country for investments in property.
“But I can buy an Italian villa for only 1 euro!”
If you’re a genuine Italian house hunter you’ve probably been attracted to the growing number of small, rural towns in Italy that have been selling off villas for the symbolic price of one euro. And who wouldn’t be interested in such an unbelievable bargain? At Italian House Hunters we’ve looked into this scheme and can give you reassurance as well as a warning!
To reassure you, such headlines may be amazing but they are true; they are not fake news! Houses are genuinely for sale for one euro, and more than 200 properties have now been sold at that price. The sellers are not scam artists but municipalities. So there’s no reason to feel you are being taken for a ride.
To warn you, it would be good to understand that there is a fair bit of “small print” attached to the contracts for these houses. So while you may end up with an Italian villa at a very low price, it won’t be for only one euro. In fact, significant investment is required. This is because there are a number of conditions which buyers must follow:
- You will have to commit to a restructuring and re-evaluation project within 365 days of purchase to the cost of approximately 20-25,000 euros.
- You will have to provide an insurance deposit of between 1,000 and 5,000 euros, depending on the town (refundable after three years).
- You will have to pay all the notarial fees for registration.
- The renovation plans must be submitted to the town council for approval.
- Once all permits are granted, work must start within a maximum of two months and be completed within three years.
Also, some municipalities are offering houses for sale for one euro AT AUCTION. So who knows what the final price will be?
It’s also worth mentioning that virtually all the real estate in Italy that is offered for one euro is in poor shape and in need of major renovation. Also, they are located in some pretty run-down rural areas of Italy. Hence the objective to “recover, develop and repopulate the municipality.”
Successful buyers of some of these one euro houses are fully aware that they will end up investing between 70,000 and 110,000 euros in the property to make it habitable.
If buying real estate in Italy for one euro and then renovating it is your objective – and you’re not too concerned about where in Italy the house is located, then this scheme may be worth considering. Otherwise, it’s the conventional route to purchasing real estate in Italy – and if this is the direction you are considering, Italian House Hunters is here to help.
Buy a property in Italy with Italian House Hunters
Italian House Hunters can help you every step of the way. From the initial search through all the paperwork, rules and regulations to the signing of the contract – and even beyond to rental advice. We have an extensive local network and can locate properties that are under the radar. Moreover, we’ll help you get the best deal possible!
Italian House Hunters are on a mission to help Italophiles from around the globe find and buy their dream house. Our experience is priceless and our expertise comes at no risk to you. If your search proves unsuccessful or if your purchase falls through, we won’t charge you.
Contact Italian House Hunters today.
