In Italy, approximately one property in five is to be renovated. There is therefore a very wide range of houses and apartments to renovate, at very attractive prices.
Italy: 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, from Milan, one of the most prestigious Italian daily newspapers. Let’s see together why buying a property to renovate can be an attractive option.
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% from Irpef , income tax, 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.