Holiday homes in Italy: sales rise but prices drop

The number of transactions is increasing, but prices are falling. The real estate market for holiday homes follows the national trend, with a 6.1% increase in transactions compared to 2018 and a 1.8% drop in average demand: here is the picture that emerges from the analysis carried out by the National Observatory of Tourist Real Estate of Fimaa-Confcommercio (Italian Federation of Business Brokers), in collaboration with the Nomisma economic studies office. The increase in sales concerns the entire peninsula. There is an increase of 6.4% in the coastal areas and 7.6% in the lake areas. Even mountain resorts do not stay behind, recording a 4% increase. A different picture for prices, however: today, the average figure required for a tourist residence in Italy is 2,134 euros per square meter, about 40 euros less than two years ago. However, this is a less drastic contraction compared to the -2.5% recorded in 2018. Costs fall mainly in Lazio (-3.5%), especially in the marine areas of the province of Rome, where a reduction of 3.8% is observed. Then come Liguria, with an average decrease of 3.1%, a percentage that reaches -5.7% if we focus on the region of Genoa. Only Friuli-Venezia Giulia experienced a turnaround that affected the entire region, with prices rising by 1.5%. Beyond the variations, the place where the houses for tourist use have the most cost is certainly Capri (12,700 euros per square meter), followed by Forte dei Marmi (12,600 € / m²) and Madonna di Campiglio (12,400 euros per square meter) € / m²). At Ortisei, it cost just 8,900 euros per square meter, at Porto Rotondo in Sardinia 8,500 € / m² and at Sirmione 8,100 € / m². A home at the seaside for less than € 1,000 per square meter! On the southern coast, in Calabria and Puglia, a house about ten meters from the sea can cost less than € 1,000 per square meter! Yes, a thousand!Check it out here ici! They go back to buying a house in southern Italy Reasoning in terms of macro-zones, the best performances for the sale and purchase of buildings have been put forward in the south of the country, an area that attracts more and more Italian and foreign investors. The mid-range homes, ranging from 85 to 115 square meters, seem more interesting, with growth peaks of nearly 11.1%. According to the analysis, buyers are mainly Italian. In 54% of cases, they come from another region, while a third decides not to go beyond regional borders, even when going on vacation. Only 15% of buyers are foreigners who choose to buy a house in Italy, 19% less than last year.

Buying real estate in Italy at a bargain through judicial sales

In Italy, a country heavily affected by the economical crisis following the 2008 subprime crack, foreclosures are abundant. That means that about 10% of the properties on the market are sold through judicial sales. These are great opportunities, since these properties are sold at a discount averaging 30% less than the price of comparable properties sold by private owners. So let’s see how these judicial sales work in Italy. What are judicial sales of real estate Judicial auctions are the means by which the judicial authority orders the sale of assets deriving from foreclosures, seizures, bankruptcies, etc. Everyone, except the debtor, can participate in judicial sales without the help of a lawyer or other professional (art.579 c.p.c.). The assets are normally estimated by experts appointed by the Court. In addition to the auction price, auction fees and tax charges are paid, if requested. The sale takes place in the state in which the goods are located and is not subject to the rules concerning the warranty due to defects or lack of quality, nor can it be terminated for any reason. The existence of any defects, lack of quality or non-conformity of the thing sold cannot give rise to any compensation, indemnity or refund of the price, as this is taken into account in the valuation of the assets. There is no right of withdrawal. The balance of the price and the payment of the tax charges must occur within the terms indicated in the specific methods of participation. Ownership of the property is transferred to the purchaser at the time of payment of the full price and tax charges. In case of failure to pay the balance of the price within the established terms, the forfeiture of the contractor is declared, and if the sale provided for the payment of a deposit, the same is retained by way of sanction. If a new enchantment is established, the defaulting bidder is required to pay the difference, in the event that the price obtained from the second auction, together with the confiscated bail, is less than that of the previous spell pursuant to art. 587 c.p.c. The offers presented are IRREVOCABLE. There is no right of withdrawal and therefore it is not possible to withdraw the offers. Anyone with promises, gifts or fraudulent means, disturbs or prevents the freedom of enchantments, commits a crime is punishable by sanction and imprisonment according to the penal code. Sales may be suspended and / or canceled at any time by order or order of the Judicial Authority which established the execution thereof. Who can participate in an auction The code of civil procedure, in art. 579, provides that “everyone, except the debtor, is allowed to bid on the auction”. The need for technical representation is not foreseen. The offers, in fact, can be made personally or by means of an authorized representative with a special proxy. How to participate in an auction The methods of participation in an auction are different in relation to the Court concerned. It is necessary to present the application together with the security and / or deposit, within the terms established in the notice of sale. Telematic sales of real estate “Telematic sales transactions” means the activities carried out between the moment of the connection of the bidders to the portal of the telematic sales manager and the awarding or identification of the best bidder. The regulation establishes the register of telematic sales managers, that is to say those subjects constituted in the form of joint-stock companies authorized by the judge to manage the electronic sale. The application for registration in the register must contain the indication of one or more districts of the Court of Appeal in which it intends to carry out the telematic sales service. Every telematic sales manager is required to establish an electronic register of telematic sales assignments. The telematic sales manager cannot participate, not even through a third party, in the sale of the assets subject to the pending proceedings before the judicial offices included in the Court of Appeal district, in respect of which it was registered. The Ministry carries out annual statistical monitoring of the electronic sales operations carried out by the managers. The offer for the electronic sale must contain, among other things, the identification data of the bidder, with the express indication of the tax code or VAT number, the judicial office where the procedure is pending, the identification data of the procedure and lot and the description of the asset, the referent of the procedure and the sales data. The price offered and the deadline for payment are also indicated, except in the case of a request to participate in the auction. During the auction or resolution on the offer, in accordance with article 572 of the code of civil procedure, the judge or the referent of the procedure, having verified the regularity of the offers, starts the sales operations. The telematic sales manager prepares and displays on its portal an automatic system for calculating the deadline set for the formulation of the bids. The bids and observations of each bidder are reported in the portal of the online sales manager and made visible to the other participants, to the judge or to the referent of the procedure; in the same way we proceed for every determination of the latter. The judge, the referent of the procedure and the registrar can take part in the sales without enchantment. With the same procedures, other subjects may also participate if authorized by the judge or the person in charge of the procedure. In any case, the telematic sales manager’s portal ensures the access of the bidders to the data contained in the electronic document referred to in article 14, paragraph 3, and replaces the names of the bidders with pseudonyms or other distinctive elements capable of ensuring the ‘anonymity. The judge, the referent of the procedure and the chancellor can however access all the data contained in the offer

Foreigners love italian lakes: luxury real estate market grows

There is a growing interest in luxury real estate on the edge of the lake: in recent years, this segment of the real estate market is alive, thanks in particular to foreign capital investments. Among the most popular places for foreign tourists are Lake Como and Lake Maggiore. According to data provided by Engel & Völkers, 70% of people buying a property on Lake Como are international buyers: firstly Germans, but also Europeans from the North, the Middle East and Americans. A dynamic that, according to surveys, will continue at a good pace also in 2019: in the first quarter of this year, the number of applications has actually increased by 20% compared to 2018. Prices have risen by about 20% in the last ten years, and even during the economic crisis, they have not undergone major changes. Among the most demanded areas are Cernobbio and Menaggio, where, in 2018, the prices of properties located in exclusive places are between 3 and 7 million euros; the cost of the apartments remained between 4,000 and 5,500 euros per square meter. Luxury real estate market on the shores of Lake Maggiore The performance of the luxury real estate market on the shores of Lake Maggiore has also been good, despite lower investments. However, the interest of foreign buyers remains strong, with a presence of 75% of the total. The most exclusive site is Stresa, with prices per square meter between 2,800 and 3,300 euros. In the Lake Maggiore region, domestic buyers represent 25% of the market, compared to 75% for international buyers. Among the international buyers, the main countries of origin are: Germany (35%), Switzerland (25%) and the United Kingdom (15%). Lake Garda property market Over the past two years, the Lake Garda property market has enjoyed a good recovery. The demand for real estate has increased and those who ask for information are seriously interested in buying. Investors are mainly Germans and Austrians who also buy land because they want to invest heavily in Italy in green building projects.

Italy: main innovations of the 2019 tax decree for real estate

Let’s see what are the main innovations of the 2019 tax decree for real estate Confirmation of the coupon option Canceled the rule that provides penalties for those who forget to confirm the option for the coupon (cedolare secca) on rents at the time of the extension of the contract. Short rental identification code Each structure for short-term rental must have an identification code which must be used for “any communication regarding the provision and promotion of services to users”. The same code should also be used by internet portal managers and real estate agents. Penalties from 500 to 5,000 euros for those who do not comply. Tenant data communication with income The data on the tenants of the short rent communicated by the owners to the state police will in turn be communicated (anonymously and aggregated by structure) to the Revenue Agency (IRS) to verify the payment of taxes. Unclaimed taxes For contracts stipulated as of January 1, 2020, the growth decree provides for the possibility of not paying taxes on unclaimed fees if the absence of collection is evidenced by a “notice of eviction for non-payment or obligation to pay”. Expiration of the IMU declaration The deadline for the IMU declaration now set for 30 June is extended to 31 December of the year following the year to which the data to be reported relate. IMU rural instrumental buildings The IMU on instrumental buildings becomes deductible from the company’s income from 2023. Until then, the percentage of deduction will increase: 50% for IMU 2019, 60% for 2020 and 2021 and 70% in 2022. Ecobonus at a reduced price on the invoice A taxpayer who is doing work to improve the energy efficiency of his building or to reduce the seismic risk has the option of receiving an advance from the supplier who performed the intervention instead of a deduction, in the form of a reduction of the amount due. The supplier can recover the contribution in the form of a tax credit or can in turn transfer it to its suppliers of goods and services.  

How to negotiate the price of a property in Italy

Some tips to get a better deal when buying any property in Italy Don’t be in a hurry if you got deadlines to respect, or are in a hurry for any reasons, it will be harder for you to get a good deal, since the other party will notice that, and will be less likely to accept price reductions. Don’t fall in love with the house try to the logic and objective. Too much enthusiasm will render you too generous with your offers. Don’t be afraid that another buyer could outbid you say to yourself: it’s either I get the house at the price I want, or nevermind. Unless you should absolutely buy that property, with no alternatives. Estimate the likely market value of the house in the year when you forecast to resell it because this could have a big influence on its actual price. If the house is likely to depreciate, you’d better bring up this argument during the negotiation. Discover the secrets of the home Become a detective and find out how long the house has been for sale and if the owner has lowered the price. If the house has been on the market for more than six months and always has the same price, the owner is probably in no hurry to sell. Otherwise, it can be treated. Inquire about recent sale prices of similar properties Ask neighbors who purchased recently; ask you real estate agent, and verify with the owners, if possible. Be very kind and diplomatic when trying to lower the price Being firm doesn’t imply any arrogance. Never hurt the seller’s feelings; if he is happy to sell to you, it will be more likely to concede a lower offer. Price is not the only element to be negotiated Furniture, kitchen appliances, the date for moving in, garden tools: these things can be part of the purchase, not only can they be negotiated, but their price is not subject to taxation. You should therefore deduct it from the total price of the purchase, in order to pay less taxes.

Real estate investing, the most profitable Italian cities

Real estate sales in Italy are going through a positive phase, especially in the big cities. In recent years, regional capitals have seen an increase in the number of investment-related transactions, also thanks to the activity of holiday homes. This is confirmed by a recent survey carried out by the Tecnocasa group’s research department, which analyzed the trend of investment transactions from 2014 to 2018. From north to south, we find out which are the places where it is interesting to bet. Milan It is the city whose real estate market is the most lively. Suffice it to say that between 2014 and 2018, home sales to be allocated to income went from 15.3% to 26.4% and that 43% of commercial activities opened last year are vacation homes. The Center has always been the most attractive area for investors, but recently other areas have also attracted interest: for example, Lodi-Corse, where more than 44% of purchases are registered, and Gioia-Fulvio Testi, attractive for both tourists and university students of Bicocca. Turin Despite a slight contraction in 2018, investment transactions have increased by more than 5 percentage points since 2014, from 17.3% to 22.6%. Centro-San Salvario and France-Sao Paulo are the most popular areas for tourists and students. Verona A well-known tourist destination, the city of Romeo and Juliet recorded a considerable increase in its investment turnover, from 23% to 30.8% over a period of four years. The historic center is the main attraction, ideal for holiday residences: here, more than 67% of purchases concern real estate to generate income. Then we find the Borgo Roma-Golosine area, which guarantees a good annual yield thanks to reduced prices. Rome While the housing market has fluctuated in recent years, the demand for investment purposes has not decreased, quite the contrary: between 2014 and 2018, there was an increase of 4.7% mostly in the center, where every second purchase is for income. Interesting not only for tourists but also for workers in the Prati-Francia macro-region, the second most popular for investors. Naples It is the capital where the increase in investment purchases has been the strongest, due to lower prices per square meter and increased tourism. While in 2014, 28.9% of the buildings purchased were intended to generate income, they exceeded 40% in 2018. The most popular areas are the center, Posillipo-Chiaia-San Ferdinando and the district of Foria. Palermo More and more Italians, but not only, choose to buy a house in the Sicilian capital. Even after interventions aimed at improving its viability, the area of greatest interest to investors is the Center, which accounts for 44% of purchases for investment purposes. Follows the macro-region University-Brancaccio, thanks to the presence of the train station and the university. And Florence, Venice, Pisa? Well, there properties for sale are few and expensive …

Foreigners interested in holiday homes in Italy are increasing

Foreigners wishing to buy real estate in the tourist areas of our peninsula are on the rise. After years of crisis, during which only the most famous and prestigious places had seen the cost of real estate remaining stable, the desire to invest in holiday homes seems to have come back in recent months. In fact, Italians and especially foreigners who want to buy a property in the tourist areas of our peninsula to spend a few weeks relaxing and then make money from short rents are on the rise. Not just at the seaside The best-selling types of apartments are the classic two- and three-bedroom apartments, while the tourists’ favorite places have a twofold tendency: on the one hand, Lake Garda and the Amalfi Coast, which retain their appeal especially in the eyes of German and Scandinavian tourists; on the other, the small villages of the Tuscan hinterland and Liguria, which arouse more and more interest among the English and the Russians, who willingly give up the view of the sea in exchange for more tranquility. Investing in the city remains a guarantee Are purchases for rental purposes a good investment? Despite taxes on the second home, the yield also reaches 5 to 6%, although it is necessary to be careful before talking about a real boom. The most practical solution is to buy real estate located in major cities or universities and to be rented to tourists, students and young workers. Are purchases for rental purposes a good investment? Despite taxes on the second home, the yield also reaches 5 to 6%, although it is necessary to be careful before talking about a real boom. As for houses located near the sea, in the mountains or at the edge of a lake, in addition to taxes and management and maintenance fees, the change in the way people live their holidays, which have become shorter and more diversified, has a negative impact.

10 reasons to consider buying property in Italy

Here are ten reasons that could prompt you to buy real estate in Italy, and the caveats that follow. You enjoy the culture of Italy or of one of its regions and would like to explore it more in depth. Be careful, Italian culture varies a lot from one region to another; moreover, what woos you at a glance may turn up to dismay you in the long run. You have an hobby that you could practice more enjoyably if you had a base in Italy, thanks to its climate or other particular conditions. Just try to practice your hobby for sufficient time in Italy. You have a large family and would like basil for all of you in which to enjoy holidays together or apart. Are you sure your family members will continue to enjoy holidays in Italy? You have young children and would like to have a base for seaside holidays. Give your children a chance to experience a holiday at the seaside in Italy before deciding. You are thinking about ways to boost your retirement finances and think property has good long-term potential. Check out taxes and the possible fluctuations of the real estate market in Italy. You would like to work and live in Italy. Check everything out carefully: working conditions, social life, fiscal obligations, food, pollution, etc. You would like to retire somewhere with a warmer climate. Provided that you won’t feel alone without your friends. You have a lump sum to invest in think putting it in a property could be a safe option and produce regular income. Verify the state of the rental market, taxes and recurrent expenses. You’ve heard about huge potential for capital growth in some areas and would like a slice of the action. Be careful, real estate market fluctuates a lot in Italy in recent years. You think you would enjoy the challenge of property developing overseas. At your own risk.

Deposit of sale price of a house at the notary’s

How it works The Competition Act (No. 124/2017) prepared the ” Deposit of Price at the Notary’s”. The new legislation applies from 29 August 2018. The real estate negotiations must have started from that date. According to the law, first of all, the price must be deposited if at least one of the parties so requests, an agreement between the parties is not necessary. The money on the account of the notary can not be touched and the notary can affect it only for payment to the seller. The seller may not receive the money solely because of damaging events caused by the seller himself: mortgage, seizure. There are no other events that prevent the notary from giving the money back to the seller.  

Rental prices up 1.5% in the first quarter of 2019

According to the latest Idealist price index, the rental market ends in the first quarter with a rise in rents equal to 1.5%, an average of 9.2 euros / m2. In the last 12 months, rents in Italy are up 2.8%. For Vincenzo De Tommaso, head of the Idealist design office in Italy: “The positive moment of the rental market continues, even if the national rent card is more and more articulated and complex. In any case, the recovery is confirmed in the main cities, but also in the centers and localities where the strong demand for short-term, sometimes seasonal, rental, especially in the main destinations, can influence the normal price dynamics. For the rest, the market remains asphyxiated and suffers from legislative rigidities that do not protect the owners against arrears and risks, forcing many of them to keep their goods out of the market instead of accepting offers from potential tenants. Hence the need for greater regulatory clarity to promote the flexibility and dynamism of this market, the engine of development of the country. Rental market by region The first quarter of 2019 ended in positive territory for most Italian regions (13 out of 20), led by Sardinia (8.4%), Basilicata (6%) and Lombardy ( 5%). On the contrary, the biggest declines of the period are Piedmont (-3.2%), Molise (-3.4%) and Umbria (-4.5%). Rental market by city Among the capitals analyzed, the most important increases concern Cosenza (12%), Chieti (11%) and Agrigento (8.1%). The largest decreases were in Biella (-11.9%), Campobasso (-8.2%) and Como (-7.2%). Bari (6.2%) leads the uptrend in the large cities markets ahead of Cagliari (4.4%) and Milan (3.4%). The winter months show slight progress in Rome (1%), while Naples (-1.4%) and Turin (-1.6%) are reversing. Milan (18.8 euros / m²) remains the place with the most expensive square meters for rent, in front of Venice (16.2 euros / m²) and Florence (16 euros / m²), which precedes Rome (13.2 EUR / m²). The lowest rents in Italy are in Caltanissetta (3.9 euros / m²), which precedes Vibo Valentia and Reggio Calabria at 4.4 euros per month.