With favourable mortgage rates, tax breaks and a strong British pound, it may be an excellent time to buy real estate in Italy.
A strong British pound
If you buy in British pounds, you have more purchasing power than a year ago. Throughout 2022, the euro steadily decreased in value against the British pound. The current strength of the British pound means that you’ll need less cash to buy a property in euros than you would a year ago. Based on today’s rate, a property in Italy selling for €200,000 would require £226,956 pounds. A year ago, the same cost in euros would have required around £246,000 pounds. If the British pound holds strong and the European Central Bank does not raise its interest rates, 2023 could be a real opportunity to harness the strong British pound.
Beneficial mortgage rates
Now is a good time to take out a mortgage in Italy to buy a house. Mortgage rates are expected to remain current or increase slightly throughout 2023.
Fiscal benefits for young first-time-buyers
For young people under 36 who are considering buying their first property in Italy, banks are offering low-interest rates for 2023 thanks to the government’s Sostegni-Bis Decree (Legislative Decree no. 73/2021). This scheme is aimed at young people hoping to get on the property ladder by offering them tax cuts and help with mortgages. The initiative eliminates VAT on taxes relating to deed transfers and the mortgage. As a result, first-home mortgages are already up by 44% in 2023 compared to 2022. Speak to us at Italian Property Finder if you are under 36, and we will give you more information about this scheme.
Buying real estate in Italy is a safe investment
The International Money Fund (IMF) is warning over a housing bubble risk in certain emerging countries, such as China and Brazil, as well as Australia, Canada, Norway and the UK. This is due to their overpriced property market and the low-interest rates applied by their central banks. This is not the case with Italy, which the IMF considers to be a safe country for investments in property.
“But I can buy an Italian villa for only 1 euro!”
If you’re a genuine Italian house hunter, you’ve probably been attracted to the growing number of small, rural towns in Italy selling villas for the symbolic price of one euro. And who wouldn’t be interested in such an unbelievable bargain? At Italian Property Finder, we’ve looked into this scheme and can give you reassurance and a warning!
To reassure you, such headlines may be amazing, but they are true; they are not fake news! Houses are genuinely for sale for one euro, and more than 200 properties have now been sold at that price. The sellers are not scam artists but municipalities. So there’s no reason to feel you are being taken for a ride.
To warn you, it would be good to understand that there is a fair bit of “small print” attached to the contracts for these houses. So while you may end up with an Italian villa at a very low price, it won’t be for only one euro. In fact, significant investment is required. This is because there are a number of conditions which buyers must follow:
- You will have to commit to a restructuring and re-evaluation project within 365 days of purchase to the cost of approximately 20-25,000 euros.
- You must provide an insurance deposit of between 1,000 and 5,000 euros, depending on the town (refundable after three years).
- You will have to pay all the notarial fees for registration.
- The renovation plans must be submitted to the town council for approval.
- Once all permits are granted, work must start within a maximum of two months and be completed within three years.
Also, some municipalities offer houses for sale for one euro AT AUCTION. So who knows what the final price will be?
It’s also worth mentioning that virtually all the real estate in Italy that is offered for one euro is in poor shape and in need of major renovation. Also, they are located in some pretty run-down rural areas of Italy. Hence the objective is to “recover, develop and repopulate the municipality.”
Successful buyers of some of these one-euro houses fully know that they will invest between 70,000 and 110,000 euros in the property to make it habitable.
If buying real estate in Italy for one euro and then renovating it is your objective – and you’re not too concerned about where the house is located in Italy, then this scheme may be worth considering. Otherwise, it’s the conventional route to purchasing real estate in Italy – and if this is the direction you are considering, Italian Property Finder is here to help.
Buy real estate in Italy with Italian Property Finder
Italian Property Finder can help you every step of the way. From the initial search through all the paperwork, rules and regulations to the signing of the contract – and even beyond to rental advice. We have an extensive local network and can locate properties that are under the radar. Moreover, we’ll help you get the best deal possible!
Italian Property Finder is on a mission to help Italophiles from around the globe find and buy their dream house. Our experience is priceless, and our expertise comes without risk to you. We won’t charge you if your search proves unsuccessful or your purchase falls through.
Interested in buying an Italian property? Contact Italian Property Finder today.