Relocation to Italy and the search for the ideal Italian property for the Dolce Vita seems to be a growing trend as people search for a simpler, back to basics life away from economic woes and the stresses and strains of modern living. Living in the wonderful medieval town of Sarnano near the Sibillini National Park in beautiful Le Marche we have had the pleasure of meeting expats from many nations over the years, and whilst they are spread quite thinly on the ground you can usually spot this species sunning themselves over a coffee on market day.
If you stop and chat to locals, you will find that invariably these 21century pioneers have bought an Italian property that, in some cases has required a small amount of work, but in others, has needed a full blown project. Invariably, they have overcome great challenges and if you are considering a move to Italy or Le Marche and really want there to be “No going back” it’s really worth you reading this article in which they download their experiences about their properties
Italian Property-Prioritise before buying an
Before entering the property market or viewing a property in Italy you need to answer the following questions:
a) What is your budget?
b) Are you willing to renovate a property?
c) Project Management: How much work are you willing to take on and will you manage the project yourself
d) What type of person are you: Are you a townie or a country bumpkin, a loner or do you prefer to socialise?
e) Location: would you be happy in a remote rural property, will it be accessible in winter, how close are airports, stations, shops, schools & other essential services. Do you require a garden and land?
f) How will you earn a living?
g) What sort of climate do you desire? Whilst the summer is generally sunny and warm, the winters can range from very cold and wet in the North to warm in the South.
Identifying the right property in Italy
Once you have decided upon your priorities, make sure that you do sufficient research on Italian properties. Prepare using notes or better still an excel-spread sheet, identifying the suitability of an area of Italy and then the suitability of property in that area. Establish the average price based on a € per square metre basis and then pinpoint properties in Italy that meet all of your priorities and seem good value for money. Ensure that you include Italian property FSBO Sites (for sale by owner) in your search as these include only Italian properties being sold directly without the 6% fee (3% vendor/3% buyer) that is charged by Italian realtors, real estate agents or Immobiliare.
Once you have a shortlist of properties, arm yourself with a list of questions and visit the area, making sure that you also ask around in local bars and guest houses and look for classified ads in shop windows and “Si Vende” signs roadsides. Oh, and consider renting for a while as long term rates are low.
Optimise the timing of your currency exchange
This can potentially be the biggest factor affecting your Italian real estate project as a small percentage swing can affect your whole project. We have met people who lost 30% of their renovation fund due to currency exchange timing issues. Keep an eye on currency exchange rates whilst you search for property. If you see that your currency is trading at or near an all-time high against the Euro you may wish to exchange currencies using an online that offers commission free exchange at good rates.
Estimate the cost of an Italian property renovation before making an offer
If there is a property rebuild or renovation involved, you should carefully consider all of the aspects and phases of your Italian property renovation project and ask the estate agent or vendor to estimate the cost of labour and materials for each of these phases. Have this verified by a third party who has experience of these matters and then assess whether the cost of the renovation has gone up from the vendor’s estimate and also whether the total cost of the property plus rebuild taxes, fees and 20% contingency is within your budget, or, whether a renovated property would be offer better value for money. Make sure that you save these estimates as these will form the basis of your budget later on.
Negotiating a price for an Italian ruin or renovated property
Having chosen your real estate in Italy, consider the price and whether this offers good value for money. Many fully renovated properties were purchased when prices for properties, labour and materials were far lower and so are being offered for quite reasonable rates. If you are buying a ruin, ensure that the price reflects the increased cost of renovation. If you like the property but think that it is overpriced considering the size and price of the renovation project don’t be afraid to make a low offer. The Italians will think of you as shrewd not rude!
Please read our article on conveyancing to assist you in Italian property purchase.
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