How to estimate the market value of a property
How to calculate the market value of real estate The construction costs, the neighborhood, the state of maintenance, the size, the finishes, the presence of the elevator rather than a terrace or a large garden and the energy class: these are the factors usually considered more important and therefore valued to define the price of a house, in Italy and also in France; but are they sufficient? And how much do they really affect the cost? It is not easy to establish the market value of a property. You must first consider the location and the context, then the condition of the apartment, but there are many factors and even more variables that can affect the final price: there is no specific list indicating the values to take into account. The variables are different and the factors also change depending on the type of property. On equal terms, therefore, an apartment in a condominium, a detached or independent house will have a different value. First, come the construction costs, especially on new or recent real estate The price of a house or apartment is a complicated intertwining of the market and the costs incurred by the manufacturer. For example on the new will have a major impact the cost of construction, municipal costs and technical costs, the cost of the construction area or demolition. Second, the position Once defined the construction costs defined, the following factors to consider are definitely the position and the area. If the demand is higher in a particular neighborhood or position, the cost will also be higher. This factor can affect the price of a variable percentage between 40 and 80% for example. Two apartments of 150 square meters with the same characteristics, the first at the gates of Milan and the second in one of the most luxurious streets of the city, can cost 300 thousand euros one and 2 million the other. Third, the condition of the building Then we find the state of the property: It can affect between 20 and 50% of the value: this gap depends on the condition, because if you do not need extra work, you will be ready to spend more than for a house where you incur other expenses to make it habitable. Old and new construction, what is different? If the apartment is old, the seismic parameters, the thermal and acoustic insulation and the exterior of the building will be evaluated. When we talk about restructuring, we can find ourselves in front of a house that is comparable internally. construction, but outside, it is still part of a building built in more or less remote times, with technologies often obsolete. In fourth place, the surface of the building The size of the house is in fourth place. In fifth place, several factors For example, the elevator: It is important, however, to specify that the elevator affects only slightly, about 15% of the value, if we consider an apartment on the first floor or on the ground floor; if we are talking about a house in a building of more than three floors, it will have a greater impact. The heating system can affect a good 10%, depending on whether it is efficient and economical, or old and consumes a lot of energy. Other factors include the assessment of the year of construction, including anti-seismicity, energy class and condominium work to be done. These can weigh from 10 to 30%.
Hundreds of houses for sale at 1 euro in Italy
“1 Euro” properties: update on past and upcoming initiatives Given the high interest that “1 euro” properties have been recently attracted, we have prepared this short draft to update our readers about the past and current “1 Euro” properties’ initiatives across the entire Italian territory. These initiatives started few years ago already, with Ollolai being one of the first municipalities offering these investment opportunities. As of June 2018, the list of Italian municipalities offering “1 euro” properties included the following municipalities, here listed by region: TUSCANY (Toscana): Fabbriche di Vergemoli (Province of Lucca); Montieri, (Province of Grosseto). SICILY (Sicilia): Salemi (Province of Trapani); Sambuca (Province of Agrigento); Gangi (Province of Palermo); Regalbuto (Province of Enna); SARDINIA (Sardegna): Nulvi (Province of Sassari); Ollolai (Province of Nuoro). PIEDMONT (Piemonte): Carrega Ligure (Province of Alessandria). ABRUZZO (Abruzzo): Lecce nei Marsi (Province of Aquila). LAZIO (Lazio): Patrica (Province of Frosinone). In September 2018 we have contacted most of the municipalities listed above, to create a complete database that listed the number of properties available in each site, their structural conditions, estimated refurbishment costs, and legal requirements to get full ownership of these properties. Most municipalities we contacted told us that the first batch of properties were already gone, with Ollolai in particular having received 5,000 requests for the first 100 properties, being currently “overbooked”. Overall, it looks like that these initiatives are currently on hold, with the municipalities trying to identify a new batch of properties to offer. The case of Sambuca (Sicily) In 2018 the Municipality of Sambuca (Sicily) did publish a call for tender to sell various properties in its historical district. The deadline to submit requests to participate to the call expired in May 2018. However, since most of the properties remained unsold, the Municipality recently decided to extend the deadline for submissions, read here. However, in order to submit new requests, it is necessary to wait for the Municipality to publish a new call for submissions (i.e., “Bando di Gara”, in italian). We recently contacted the office in charge of issuing the new call and they told us they expect to do so in 30/40 days, the latest. At that point, we would be able to know the rules governing the call in more detail. According to the one expired in May, properties were assigned based on an auction with a starting price of €1, with participating bidders submitting their offers and the highest bidder winning the property. At the moment, there is uncertainty on whether the new call will be regulated based on the same rules, this is why we have to wait for it to be issued. Here the link to the properties that are still available for bids. Our law firm will update this page as soon as we receive any new info. Feel free to contact us by email at info@studiolegalemagaraggia.it if you have any further question or you would like to receive a quotation of costs and fees for our advice and assistance in the bidding process. Further information, see article by CNN. Kind regards, Marco Magaraggia Senior Partner
Veneto is the most visited region in Italy, thanks to the sea
Veneto in the European top 10 with nearly 18 million Italian and foreign visitors in 2016 Sea, Dolomites and Venice: it is the triptych that makes Veneto the most visited Italian region, the only one of the top ten in Europe. On the one hand, there is the coast of the province of Venice, from Bibione to Rosolina, through the large number of pearls like Jesolo Lido and Caorle: miles of beaches that have nothing to envy to those of Emilia Romagna, which are traditional destinations of Austrians and Germans, who start to frequent them from May. On the other hand there are the Dolomites, a UNESCO World Heritage Site, the “pearl” Cortina d’Ampezzo and mountains like the Crystal, the Marmolada or the Three Peaks of Lavaredo, chosen by a growing number of foreigners for hiking and walk in the woods. From the ‘jewel’ Venice to the Prosecco hills In the middle there are villages and cities, starting from Venice, which alone is worth more than 20 million presences, which occupy all the year the hotels between the streets and San Marco then go all the way to Murano, Burano and the other islands of the lagoon. But then, they move to see Giotto’s works in Padua, Palladio’s work in Vicenza or to touch Juliet’s boob in Verona, a classic lucky ritual that is repeated every year by thousands of people who visit the city by reliving the emotions of Shakespeare’s work, and perhaps by watching that represented at the Arena. At the gates of Verona, in recent years, tourism is growing on Lake Garda, where more and more visitors arrive each year. Then there is the thermal tourism, with places like Abano and Montegrotto, near Padua, and the gastronomic and oenological tourism, wooed by the Prosecco boom, whose hills have recently been nominated World Heritage by Unesco. In 2016, record number of tourists On the other hand, in 2016, there was the record number of tourists: arrivals were 17,856,567 (+ 3.5%), with foreigners 11,525,916 (+ 2.8%) and Italians (6,330,651 + 4, 7%); total attendance 65,392,328 (+ 3.4%), with 43,961,624 foreigners (+ 4.1%) and 21,430,704 Italians (+ 1.8%). If we look at the turnover, tourism is the most important industry in Veneto, with revenues exceeding $ 17 billion. Figures that could be retouched, again, up: on the beaches, indeed, summer started right and June also saw double-digit increases in different places. And if during the winter the snow did not help the skiers, no less people went to Cortina or the other Dolomites, thanks to the massive investments of the last years for the artificial snowing of the slopes, which fall between breath-taking views. A unique scenario, to the point that the Tre Cime area was chosen for certain filming of the new movie Star Wars, the eighth of the saga: tourism in Veneto, it should be said, is spatial. Italian Veneto in the top 10 most visited regions of the EU Spain, France and Italy are the favorite destinations for European tourists, but only one Italian region – Veneto – falls in the “top ten” of the European Union, according to data published by Eurostats for the number of nights spent for tourism in 2015. In the ranking of the ten most popular destinations, the Canary Islands in Spain are clearly ahead with 94 million nights in 2015. Spain is the country with more regions in the ‘top ten’ with 75.5 million nights for Catalonia, 65.2 million for the Balearic Islands and 61.4 million for Andalusia. France has three regions among the ten most popular with Paris and Ile de France (76.8 million nights, second in the EU), Provence-Côte d’Azur (54.6 million) and Rhône-Alpes ( 48.7 million). Croatia ranks fourth in the EU (68.1 million nights), while Veneto is the only Italian region in the top ten, finishing in sixth place with 63.3 million nights. Six Italian regions in the Top 30 However, if you consider the 30 favorite destinations in the EU, Italy is tied with Spain and France with six regions in the ranking: Veneto, Tuscany, Lombardy, Emilia-Romagna, Lazio and the autonomous province of Bolzano. The southern regions are absent: according to Eurostat, in 2015, 58% of Europeans spent their holidays in their own country, 26% in another EU Member State. Only 16% of overnight stays were spent in non-EU destinations, with the United States being much more popular (13.8% of overnight stays by EU residents in the rest of the world), followed by Turkey (10%). 4%) and Morocco (4.6%).
20 mistakes to avoid when buying a home in Italy
The purchase of a house is one of the most important decisions and probably the main investment in the lives of most Italians and, nevertheless, the same mistakes are frequently made. Buying a home is a big economic effort and sometimes we are engaged in a good part of life. After years of crisis, the real estate market is catching up in Italy. 1. Generally, the accounts are not good. In Italy, according to various international studies, we do not have a financial culture. Buying a house is the biggest investment for many Italians, but we do not have enough financial preparation to deal with it. 2. Many people forget that at the price of the property you have to add about 10% for the expenses. In addition to the VAT (if the house is new) or the registration tax (if the house is second-hand), there are cadastral taxes. 3. There is no account on the loan, which also involves expenses and taxes. The mortgage tax usually applies 2% of the amount borrowed, not to mention that many banks want mortgage insurance, which serves to protect against risks such as the loss of employment or death of the policyholder. It’s useful, but it costs, and much. 4. Taxes and additional expenses. The buyer forgets that being a homeowner means paying condo fees each month and other extras that can dramatically increase the price. Houses need maintenance, not to mention common expenses (facade, antenna, elevator, etc.). In the case of an independent house, the costs are even higher. 5. Money for furniture and contingencies. When you make a budget, you add the expenses for furniture and additional funds for contingencies that do not have to do directly with the house, like breaking the car two months after buying a house. 6. Do not ask for a report on the taxation of the property. 99% of people who buy a house do not inform themselves in advance of the fees to be paid. 7. Do not rely on Euribor in the case of a variable rate mortgage. If Euribor is at its lowest, we must also consider when it will be the highest. 8. Apply for a mortgage with long maturities. More than 25 years, it is not practical to buy: by calculating all interests, the house becomes too expensive. 9. Make debts greater than 30% of your income. The Bank of Italy suggests that the share of the loan, added to the rest of the debts (the payment of the car, credit card, personal loans) should not exceed 35-40% of the income of the mortgage borrower. 10. Ask for guarantees from parents, friends or relatives. Those who decide to buy a house should take their responsibilities. 11. Often those who buy lose the meaning of what it means expensive or cheap. You need to research statistical information and compare market prices. You can find information in many ways, from the local branch to the Bank of Italy, but also through real estate portals. 12. Many buy a home thinking that prices are still rising. The latest experiences have taught us that the value of homes does not always improve, but it seems that not everyone wants to understand it. 13. Do not listen to the agencies. At the moment, you can save money through an agency. Negotiate, and the agents know it well. For this reason, they may have more room to lower the price and convince the seller to substantial discounts. 14. Do not negotiate the price until the end. Many potential buyers give up some properties because they think they can not cope with the price. Prepare to negotiate and always have a counter-offer available, but always after counting. Another mistake is to accept a contract for fear of losing the house. If your budget is 180,000 euros, for example, do not move from there. If that’s not enough, it’s not the house for you. 15. Let yourself be emotionally transported. Sometimes buying a house is a more emotional than rational decision and the purchase is then wrong. If you feel tired or unmotivated after months of searching, it will be easier to decide badly. Take the time to think. 16. Thinking that prices will not go down and so rush. There is still no clear data to speak of a widespread price recovery, but only a few partial data confirming that certain areas have held. If the center of Milan or Rome has increased, it is not granted that the same thing happens in the suburbs. 17. Speculate on the house. The house must be a good use. If we buy it to live, there is a relative problem, since, at least, it solves the housing problem. But if we buy it to speculate and things go wrong, we will have destroyed our finances for many years. 18. Do not consider whether it is worth living on rent. 19. Buying a home is not like buying a car. It is a decision that can have repercussions over the next thirty years, a period when anything can happen: births, deaths, divorces, job opportunities in other states or in other cities. 20. Not consult the notary before signing important documents such as purchase proposals and a preliminary contract. For example, not everyone knows that donated goods are liable to an action for revocation by the heirs who have been wronged in their rights. For this reason, many banks do not lend for the purchase of property from a donation. In this case as in other cases, the opinion of an expert can prevent any bad surprise.
Italy’s real estate prices per square meter
If you have a budget of 200,000 euros, how many square meters of real estate will you buy in one of the big Italian cities? This is an analysis of the Tecnocasa group which say it. The real estate group’s design office looked at the 10 big cities and the “average used” value of a building, leaving aside the highest prices. With the budget considered, you can buy a 66 m² apartment in Rome, a result of an average price per square meter that is about 3.043 euros. If you want to live in the center of the capital, you should be satisfied with a house of only 38 square meters, or an even smaller property for the historic center. After Rome there is Milan which, with the same amount available, offers the possibility of buying a few square meters more than Rome, namely 71 square meters; but even in this case, if you choose the center, you must be satisfied with a building of 35 square meters. The third place among the most expensive cities is Florence where, with 200 thousand euros, an average building of 77 square meters is purchased, which becomes 61 square meters in the center. Do you want to buy a property in Naples? The city average is 96 square meters for 200,000 €. Cheaper than ever, so with the possibility of having a more spacious property, is Palermo, that, having an average price of 1.172 € per square meter, allows you to buy a good 171 square meters. The best value may be in the coastal villages of southern Italy, where you can buy, with 200 000 €, with sea view or even next to the beach, villas with more than 100 m² or apartments up to 200 m². Indeed, you will find prices of about 1000 € per square meter.
2018 Italian Budget Law: there are many home bonuses!
In the new Budget Law there is room for home bonuses. Let’s see what are the changing agendas and the remaining ones. Ecobonus 65% – For the whole of 2018, the ecobonus was confirmed at 65% for energy efficiency in the home. But it changes the perimeter of incentives: the installation of fixtures, solar shields and condensing boilers and biomasses goes from 65% to 50%; the bonus for solar panels for hot water, heat pumps and other building block jobs remains unchanged at 65%. 50% Bonus for Restructuring – It is possible to use the 50% bonus for restructuring costs incurred up to December 31, 2018, within a total amount of expenditure not exceeding 96,000 euros. Furniture Bonuses – A 50% deduction for the purchase of furniture and large household appliances in class A or A +, for a ceiling of 10 thousand euros. The deductions will be spread over 10 rates. Green Bonus – As of 1 January 2018, a figure of 36% of documented green fees can be deducted, up to a maximum of 5,000 euros for each real estate unit. The new discount will be dedicated to green housing “of private outdoor areas of existing buildings, real estate units, appliances or fencing”. Dry Coupon Extension – Contrary to the drafts circulated in recent days, the 10% coupon is extended on agreed contractual contracts, but the extension will only be due for the next two years. No stabilization, therefore, and no enlargement even to the “non-residential” properties, offices and stores remain excluded. Sismabonus and condominium bonus – On the front of the condominium ecobonus there are 70 and 75% discounts that are confirmed until December 31, 2021. The sismabonus will reach by 2021, with varying percentages between 75% and 85%. Ecobonus and sismabonus for former Iacp – The autonomous homes (formerly Iacp) can take advantage of the ecobonus for energy efficiency projects built on their property, as it was in the past, but also on real estate managed on behalf of the communes. The former Iacp will have access to the sismabonus up to a maximum of 85%. Guarantee Fund – The National Fund is set up to provide guarantees on loans aimed at energy recovery with a budget of 50 million per year between 2018 and 2020, broken down between the Ministry of the Environment and the Mise. Low-income households will thus have easier access to bank loans: with these 50 million annually, it will be possible to stimulate, according to government estimates, about 600 million of investment. Surrender of credits also for individual apartments – It is possible to transfer the deductions even for the transactions carried out on the single real estate unit, apart from the condominium interventions. Those who receive the bonus can then also transfer it again. So far, the possibility of transferring the deductions was limited to the only case of interventions on the condominium parts. Technical Requirements and Ceilings – The minimum technical requirements that Efficiency Interventions have to comply must be updated to fit into the ecobonus perimeter. To deal with there will be a decree of the Ministry of Economic Development. The text will also review the specific cost ceilings for each type of intervention, in addition to the execution procedures of the sample checks performed by the Enea.
The Italian real estate market keeps improving
The improvement in the Italian real estate market is slight but steady. At the 52nd National Congress of Notaries, the “statistical report on notaries” was presented for the first half of the year. The report reveals an interesting view of the Italian real estate market. In particular, in terms of sales, it is still the north of the country, Lombardy, in first position, while in the mortgage sector, there is still a certain caution both in requesting and providing funds. Buying property in Italy During the first half of 2017, 401,432 real estate purchases were analyzed, including 300,929 covered dwellings and important premises (boxes, cellars and car parks). More than half of purchases of manufactured goods, ie 56.48% (163,155 transactions), allowed for a first improvement in housing with a clear distinction between purchasing from private customers and from professionals with a clear crisis in the purchasing of new or renovated properties. On the profile of the territorial division, there is a clear difference between the North and the South of the country. The North is doing better on the real estate market More than 56% of real estate transfers were made in the North (34.84% in the Northwest, 21.59% in the Northeast), the Center 17.74%, the South 18.15% and the islands 7.67%. A positive number made the Friuli Venezia Giulia a record with + 10.72%, the Aosta Valley with + 6.37%, Trentino-Alto Adige with + 4.40%. In the Center, unlike the rest of the regions of the area, Umbria puts a + 7.91%. Lombardy and Veneto are also positive, with respectively + 2.60% and + 0.74%. Lombardy reamains the region where more goods are traded with 82,561 transfers, equivalent to 824 transfers per 100,000 inhabitants. In terms of housing, 56.48% are purchased with the first home purchase subvention: 49.5% are purchased by individuals and only 6.9% by businesses. The majority of the purchase of the first house is between the ages of 18 and 35: 39.5% of transfers; they increased by 3% compared with 2016. Even in the first half of 2017 – as in the first half of the previous year – 55% of the purchase of buildings and 97% of the purchase of agricultural land and 85% of the buildings are under the price of 100,000 euros. A certain caution and a low propensity to risk in the world of mortgages There is a 2% increase in new mortgage loans on buildings, but there is still a propensity for prudence and aversion to banking risk, as more than 70% of mortgages do not exceed 150,000 Euros. However, it seems important to note a rise of more than 10% in loans of more than € 500,000 €, indicating a resumption of large investments. In the first half, also increased by about 9% the amount provided by banks for new loans. Taking into account the total amount of bank financing: 78% are represented by new mortgages (mortgages), while substitutes represent 13.38%. The most funded age range is 18-35 and 36-45, of which 70% is funded.
Investing in real estate in Italy: the consequences of global warming
The consequences of global warming in Italy are before everyone’s eyes. Here are a few : Summer temperatures remain very high for several weeks, especially in large cities. During July and August 2017, Bologna, for example, experienced maximum temperatures above 35 ° during most of these months. In the same period, most Italian cities, both in the North and in the South, recorded maximum temperatures well above 30 °. Air pollution due to urban traffic is becoming more and more dangerous, forcing municipalities to limit traffic. Summer storms, due to masses of very hot air that meet the cold draft from the north, are becoming increasingly violent, causing flooding. We see phenomena never seen before, such as water spouts that cause considerable damage and flooding. Floods and landslides are becoming more frequent. The sea level increases by about 3 mm per year, it is already 20 cm higher than at the beginning of the century, facilitating the floods and the breaking of the waves on the coasts Beaches undergo erosion which shrinks them and in some cases has already completely carried them away. Some bars and restaurants on the beach had to be closed. Jellyfish often invade the Italian coasts, especially in the center and south, making swimming difficult, unless you’re staying in a water no deeper than 130 cm. How to invest in real estate by keeping away from all the pernicious consequences of global warming? These are the precautions to be taken, in my humble opinion, with respect to each problem listed above: Avoid investing in large cities, aunless there is a particular interest in doing so. It is very likely that real estate in the sea and the mountains will be more and more sought after, and valuable, as people want to leave the cities too hot in the summer, at least for the holidays. It is better to equip yourself with a green car, electric, hybrid or with LPG or natural gas, which will still be able to circulate. Find out more about the meteorological phenomena observed in recent years and ask the municipality for a map of the flood zones. The Adriatic coast to the east is less affected by the boiling air coming from Africa: water spouts and severe thunderstorms are therefore much less frequent than on the west coast and on the islands. Look carefully at the land upstream of the property you would like to buy. Consider the extent of the beach and find out about its erosion during the last decades, if you want to buy a property in the sea. Ask about jellyfish before buying a property in the sea.
Municipal taxes in Italy for 2018: Imu, Tasi, Tari
Imu, Tari and Tasi: tell me in which region you live and I will tell you how much they cost you Municipal taxes are important in Italy, although cheaper than property taxes and housing taxes in France. In particular, in Liguria. And the most important tax is Imu, with an average cost of 197 euros. However, the waste tax and the Tasi, communal tax on integrated services, are no less important. According to the data prepared by Adnkronos and contained in the tables distributed by the Ministry of Finance, during a parliamentary hearing on the fiscal capacity of local authorities for next year, in 2018, the Ligurians will pay on average 703 euros. Taxpayers who live in Calabria will pay less than half: 298 euros. In 2018, Italian taxpayers will pay an average of 489 euros of municipal taxes, but with significant differences depending on their place of residence. After the Ligurians, to pay the highest local taxes will be those who live in Lazio (596 euros) and in Tuscany (581 euros). Whereas, after Calabria, the least taxed will be the inhabitants of Basilicata (310 Euro) and Molise (354 Euros). Above the national average: Emilia Romagna (570 euros), Piedmont (500 euros), Lombardy (498 euros). Below the average: Veneto (479 euros), Umbria (464 euros), Abruzzo (451 euros), Marche (429 euros), Apulia (389 euros), Campania (377 euros). The cost of Imu Imu is the most important tax, with an average cost of 197 euros. The highest peak is in Liguria, where it reaches 362 euros, and the lowest in Basilicata, where it stops at 108 euros. Then there are Tuscany (236 euros), Emilia Romagna (234 euros), the action (232 euros), Piedmont (212 euros), Lombardy (200 euros), Veneto Abruzzo (€ 181), Marche (€ 170), Umbria (€ 168), Molise (€ 159), Apulia (€ 158), Campania (€ 131) and Calabria (€ 115). How much cost waste disposal (Tari) Waste costs an average of 122 euros. Tuscany (€ 161), Lazio (€ 154), Campania (€ 142), Emilia Romagna (€ 139), Abruzzo (€ 135), Umbria 136 euros)), Liguria (134 euros). Below the national average, Puglia (€ 119), Marche (€ 109), Piedmont (€ 105), Veneto (€ 102), Basilicata (€ 97), Calabria euros). The weight of Tasi The Tasi weighs on average 35 euros. There is Liguria (56 euros), then – above the national average – Emilia Romagna (43 euros), Tuscany (40 euros), Lombardy (39 euros), Lazio (39 euros), Piedmont (38 euros), Veneto (36 euros). You pay less than the national average in Umbria (31 euros), Abruzzo (31 euros), Marche (29 euros), Molise (28 euros), Apulia (25 euros), Campania Calabria.
Industrial production increases, boding well for real estate
Increase in industrial production in June. According to Istat, the Italian State Statistics Institute, the seasonally adjusted index rose 1.1% from May, adjusted for calendar effects. In June 2017, the index increased in trend terms by 5.3% (working days are 21, as in June 2016), at the upper end since the end of last year. On average for the quarter of April to June 2017, production increased by 1.1% compared to the previous three months. On average, for the first six months of the year, production increased by 2.2% compared to the same period last year. The positive trend continues for the Italian industry, after positive data were also recorded in May. The recovery is already influencing the real estate market Indeed, if we look at the property prices of the last 24 months, we note that the stabilization of the Italian real estate market is confirmed, as is the economic recovery. Prices remain at fairly low levels compared to the pre-crisis level of 2008, so we can do good business by buying real estate in Italy. The automotive industry is doing particularly well The acquisition of Chrysler and Jeep by Fiat is bearing its fruits Leap of production in particular in the automotive industry. Italian car production in June increased by 19.9% over the previous year, according to Istat. The average growth in the second quarter, compared to the previous period, is 4.4%. “This is the sector that drives industrial production this month,” said the Institute of Statistics.