The type of buyers entering the Italian real estate market can be divided into several categories and knowing this approximate breakdown has its advantages. On one hand, figuring out in which category you fit yourself, will assist you in the buying process to choose the type of property that’s right for you. And on the other, it will help you determine who the eventual buyer of your Italian property investment might be.
Many people decide to buy a property in Italy based on the simple fact that they have fallen in love with the country and a particular region like Liguria after numerous holidays there.
What is bought as a holiday home, and perhaps therefore used only for a few
weeks a year, can, of course, be considered for letting to offset its purchase
cost, ongoing maintenance and as a way of using the investment not only for
capital appreciation, but also as income generator.
It always pays off to think ahead and make your purchase a medium to long-term investment. It is therefore essential to try and anticipate different eventualities down the line - what may start off as a holiday home may later be needed as a retirement home, a permanent family home, or a rental income generator. The best advice here is to try to consider as many of these categories as possible.
One way for investors in this category to leverage their investment is to invest for capital appreciation. Other way is through renting out the property for income generation. Either way, the key aspect for anyone falling under the pure investment category, is to carefully consider who their potential buyers are and then cater for their needs.
If your purchase will lead to renovation work, you need to study what is prevalent and traditional in the area and copy that. Let’s say you renovate an old farmhouse in Liguria, you will greatly devalue the property by adding modern designs and features to replace original ones.
This may sound obvious advice, but it is not always followed and leads to disastrous results. Always remember the golden rule of renovation - never rip out original features unless they are beyond repair; and if they have to come out, replace them with a design of the same period and quality.
This type of buyer is looking to relocate to Italy and as such will be looking for a property that is large enough to become a family home and one that is also convenient for schools, shopping and medical facilities.
Other factors will be at play if this purchaser’s income is not from a home based
activity – they may well need to be within commuting distance of a major city.
It is worth noting that, although it is not obvious to the casual observer, Italy is
fast becoming a multi-ethnic, multi-national country and has experienced a
large influx of foreigners in recent years.
The EU has made it possible for retired people to retain many state benefits regardless of where they live within the European community. This has made retiring to a warmer climate an exciting and realistic possibility for many people.
Anyone moving from the UK to Italy will retain their right to a UK state pension. And by using form E111 from the DSS, retirees – and anyone else who has kept up
with their UK national insurance contributions – are entitled to free state
However, it cannot be stressed enough that retiring to Italy, or any foreign
country for that matter, is a major step and one that should not be taken before all factors – not just financial – are evaluated. Sickness, medical care and the death of a spouse are sobering, but essential considerations.
And, of course, any taxation planning and property investment based on tax
efficiency should only be undertaken after seeking personalised, expert advice.
Thank you for visiting our guide… we look forward to welcoming you to Liguria and hope you will love it as much as we do !
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