Italy is one the most popular countries where Brits and Americans (but not only) prefer to buy a house as an investment.
The prices of the houses, the rental costs and the investment return are very different depending on the region where the house is located.
Tuscany and Umbria are the most famous Italian regions for real estate investments.
In recent years the houses price in these areas, within Liguria and the major cities (Florence, Rome, Milan and Venice), have risen fastest.
If you are thinking about buying a home in Italy not for your own regular use but, for example, as a holiday home, you are in the position to benefit from a tangible return on your investment.
Here are the main kinds of investments properties: - a holiday home: this can provide a rent-free accommodation for you, your family and friends and it is supposed to maintain or increase its value.
- a home for your children and relatives: this can also increase in value and can also be let when not in use, in order to provide an income - a business property: this can be an office, a shop or even a private house used as bed and breakfast - a property purchased for investment only: this can be a capital investment or provide a regular income Please notice that a property investment should be considered over the medium to long term, (about 10 or 15 years).
You have to consider that properties are not as safe as houses and investments can be risky in the short to medium term.
Moreover, you also have to take into account the Income tax for property owners.
We'll speak about it in our next post.
When buying a house to let, you have to remember that rental rates and letting seasons are different according to the region and town.
Let's see some data* about rental prices in summer 2010.
Last August there were no vacancies, but the rental prices decreased by 10-15% even in high season.
The good news is that because of the crisis, people prefer to rent a house for their holidays instead of an hotel room.
The most popular places were the seaside towns like: Puglia (Gallipoli), Tuscany (Grosseto coast, Castiglione della Pescaia, Orbetello, Follonica, San Casciano, Arezzo countryside) and Emilia-Romagna (Adriatic Riviera) in the lead (16 % each).
Sardinia follows right behind with 13% of requests concentrated among the archipelago of La Maddalena, Doria valley and the coast of Cagliari.
With 6% we find Liguria (Sanremo and Ventimiglia), Calabria (Diamante and Lamezia Terme Coast) and Abruzzo (Alba Adriatica, Montesilvano, Francavilla).
5% Lombardia (Garda and Como lakes).
Moroever, Marche coast made 3% as well as Catania, Siracusa and Trapani in Sicily (3%).
Let's have a look to the prices of the rents now.
Average prices of house rental Prices per person/per day in Euro in August Trapani (Sicily coast): 28,70 Massa Carrara (Tuscany coast): 25,30 Grosseto (Tuscany coast): 35,40 Salerno: 35,50 Palermo: 30,90 Roma: 32,70 Venezia: 36,90 Catania: 28,00 Lecce (Puglia coast): 30,00 Sardegna: 37,00 Genova: 27,70 Italy: 32,20
The prices of the houses, the rental costs and the investment return are very different depending on the region where the house is located.
Tuscany and Umbria are the most famous Italian regions for real estate investments.
In recent years the houses price in these areas, within Liguria and the major cities (Florence, Rome, Milan and Venice), have risen fastest.
If you are thinking about buying a home in Italy not for your own regular use but, for example, as a holiday home, you are in the position to benefit from a tangible return on your investment.
Here are the main kinds of investments properties: - a holiday home: this can provide a rent-free accommodation for you, your family and friends and it is supposed to maintain or increase its value.
- a home for your children and relatives: this can also increase in value and can also be let when not in use, in order to provide an income - a business property: this can be an office, a shop or even a private house used as bed and breakfast - a property purchased for investment only: this can be a capital investment or provide a regular income Please notice that a property investment should be considered over the medium to long term, (about 10 or 15 years).
You have to consider that properties are not as safe as houses and investments can be risky in the short to medium term.
Moreover, you also have to take into account the Income tax for property owners.
We'll speak about it in our next post.
When buying a house to let, you have to remember that rental rates and letting seasons are different according to the region and town.
Let's see some data* about rental prices in summer 2010.
Last August there were no vacancies, but the rental prices decreased by 10-15% even in high season.
The good news is that because of the crisis, people prefer to rent a house for their holidays instead of an hotel room.
The most popular places were the seaside towns like: Puglia (Gallipoli), Tuscany (Grosseto coast, Castiglione della Pescaia, Orbetello, Follonica, San Casciano, Arezzo countryside) and Emilia-Romagna (Adriatic Riviera) in the lead (16 % each).
Sardinia follows right behind with 13% of requests concentrated among the archipelago of La Maddalena, Doria valley and the coast of Cagliari.
With 6% we find Liguria (Sanremo and Ventimiglia), Calabria (Diamante and Lamezia Terme Coast) and Abruzzo (Alba Adriatica, Montesilvano, Francavilla).
5% Lombardia (Garda and Como lakes).
Moroever, Marche coast made 3% as well as Catania, Siracusa and Trapani in Sicily (3%).
Let's have a look to the prices of the rents now.
Average prices of house rental Prices per person/per day in Euro in August Trapani (Sicily coast): 28,70 Massa Carrara (Tuscany coast): 25,30 Grosseto (Tuscany coast): 35,40 Salerno: 35,50 Palermo: 30,90 Roma: 32,70 Venezia: 36,90 Catania: 28,00 Lecce (Puglia coast): 30,00 Sardegna: 37,00 Genova: 27,70 Italy: 32,20