If we look at real estate ads in Italy, we see that roughly 10 to 15% of ads refer to real estate to renovate, with significant variations from one city to another. In some regions, such as Liguria, most of the buildings are over 60 years old. Nevertheless, the foundations, the walls, everything that is structural work, are quite solid.
The causes of old age of real estate in Italy
Italy is very densely populated, especially considering that the entire center of the peninsula is occupied, from north to south, by the Apennine mountain range. Building plots are therefore expensive, and there is not much availability. What is more, after the great post-war demographic expansion, Italy experienced the highest birth rate in Europe, which led to its population being the oldest in the world after that of Japan. In Italy, around 22% of the population is over 65 years of age. However, it is mainly young couples who build houses. All of this makes me expand the offer of real estate to renovate.
Is buying a house to renovate a good investment?
To date, the answer is yes, at least according to an analysis by Corriere della Sera, the main daily newspaper in Milan. Let’s see together why buying a property to renovate can be an attractive option.
Real estate to renovate with lots of character
It’s a matter of taste, but it’s hard to deny that old Italian homes have cachet. Even from the point of view of thermal and acoustic insulation they offer advantages, since the thickness of the walls often exceeds 30 cm, the ceilings are very high, sometimes with rounded vaults and doors. The same goes for the quality of the materials, often red bricks without holes, marble or stone stairs.
Tax bonuses and minimum rates
The tax benefits on extraordinary maintenance work on residential buildings have also been extended for 2020: this means that for expenses of up to 96 thousand euros, you are entitled to a deduction of 50% Irpef, spread over ten years. This percentage can go up to 65% for energy requalification works.
Added to this is the particularly positive situation on the mortgage front: interest rates at historically low levels provide access to very favorable financing conditions.
How much do you save?
According to the Nomisma Observatory, the savings would be considerable even taking into account the amount to be allocated to the works. In Milan, for example, almost 80,000 euros would be spent to buy an 80 square meter apartment to renovate compared to a house ready to be lived in.
In principle, the Irpef advantage significantly affects the choice of buyers when the price difference between the house to be renovated and that already habitable is at least 30 thousand euros.
Without forgetting another factor of interest for potential buyers: the 2020 finance law increased the IRPEF deduction from 50% to 90% for painting and renovating facades. An initiative that stems from the desire to encourage the redevelopment of the residential heritage of many Italian cities.
age of many Italian cities.