What is Italian Property?
Where is the company based? Where does it operate?
How many people does the company employ
What services does the company offer?
What are Italian Property’s charges? Does the company charge per service or get overall commission on a sale?
Who is responsible for the taxes and costs associated with a sale?
What are the steps for buying a property in Italy?
Who are Italian Property’s customers? Are they mostly British? Are they purchasing property as a buy-to-let investment, holiday home or permanent residence?
What advice would Italian Property give people looking to buy property as a but-to-let investment? Which regions are seeing most appreciation, and where can you expect the best annual yield? Is rental income taxable?
What advice would you give people looking to buy property as an investment?
What it the average cost per sq metre of restoration work?
How can clients be sure they are getting good value, quality materials and skilled tradesmen?
What building restrictions and regulations apply in Italy? Do they vary between region?
What is Italian Property?
Italian Property is one of the largest, independently operated property sales and restoration agencies in Italy.
It was founded as a real estate agency in 1985 by British businessman and property developer Anthony Dunkley, and expanded in 1993 to include a complete bespoke restoration service for derelict buildings. The company is now a recognized expert in the restoration field.
Italian Property is legally licensed to operate throughout Italy, and a member of the FIAPP.
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Where is the company based? Where does it operate?
Italian Property is based near Cortona in Tuscany. This office provides a bespoke sales and renovation service in Tuscany, Umbria and Le Marche.
It works with a network of affiliate agencies to cover many of the country’s other popular regions - Calabria, Florence, Lake Como, Liguria, Lunigiana and Puglia – and aims to increase its network to include Abruzzo in 2008.
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How many people does the company employ
Italian Property has a managing director, marketing and development director, lead restoration project manager and a team of six full time consultants
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What services does the company offer?
Italian Property offers clients a complete ‘key-in-hand’ service - from their initial enquiry through to the first day of occupancy.
Its website shows all the properties it currently has on its book, with basic information about their location, condition and cost. More documentation is available on request to help with the search. The company can conduct a bespoke property search for those who don't have the time to do it themselves, or accompany clients on viewing trips.
Once a property has been selected, the company provides step-by-step purchase support, including negotiating with vendors, preparing offer letters, and carrying out checks on the property’s legal status. In addition, it can help clients open a local bank account, advise on costs of any work needed on the property, and provide advice on foreign exchange, finance and mortgages.
Post sale support, such as the re-assignment of utilities bills, registration for annual house tax, and advice on insurance, is also provided.
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What are Italian Property’s charges? Does the company charge per service or get overall commission on a sale?
Up until the moment a client finds the perfect house the service is completely free.
Once a sale is going ahead Italian Property charges an all-inclusive fee for its comprehensive services. This is a fairer method of financial compensation than a percentage commission. This fee includes conveyancing costs, including all searches and related documentation, translation costs of contract documents, and post sales support for the first six months.
Italian law allows for an agent to be paid by both buyer and vendor, which presents a possible conflict of interest, and does not necessarily give the buyer the protection he needs, especially as a foreigner not speaking the language. Italian Property only represents the buyer's interests, thus giving more assurance. In a negotiation it often saves clients more than it charges.
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Who is responsible for the taxes and costs associated with a sale?
The buyer is responsible for most taxes associated with a sale. At the time of purchase, Italian Property provides clients with a complete list of the costs that will be incurred. As a rule of thumb, buyers should allow between 10% and 15% of the purchase price to cover extras including property purchase tax, registration tax, notary and legal fees and bank transfer charges.
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What are the steps for buying a property in Italy?
• Once a price has been agreed with the vendor, an offer letter needs to be submitted.
• If the offer is accepted, a number of searches on the property are needed, including whether it is registered correctly, planning permission and building regulation approvals, Land Registry confirmation, and checks for any outstanding claims or debts on the property.
• Once this process is complete, a preliminary contract is prepared. This is a binding legal agreement setting out the terms of the sale including a final closing date: it is a commitment to buy the property and pay the agreed price at the time of signature. This is accompanied by a deposit which is forfeited by the buyer should they decide to pull out of the sale, or repaid double by the vendor.
• The final stage is closing, which takes place in front of a Notary and requires both parties to be present. The Notary has a duty to ensure that all documents are correct and accurate, that the buyer is clear about the property he is buying and is responsible for the payment of all taxes relating to the purchase.
• Purchasers also need an Italian fiscal code and a local bank account to complete the sale.
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Who are Italian Property’s customers? Are they mostly British? Are they purchasing property as a buy-to-let investment, holiday home or permanent residence?
Approximately 50% of our clients are from the U.K. and Ireland, 40% from the U.S. and 10% other. The purpose for purchasing is approximately 50% as a permanent residence, 30% as a holiday home and 20% as an investment.
Many clients that understand the investment and design opportunities related to restoring a property in Italy, and come to us due to our expertise in this field.
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What advice would Italian Property give people looking to buy property as a but-to-let investment? Which regions are seeing most appreciation, and where can you expect the best annual yield? Is rental income taxable?
That question is obviously based on region. In the most expensive areas, say for example Tuscany, the price for a four bedroom property averages at 600,000 (Euros). The rental on that could exceed 3,500 (Euros) / week. Given that you have a 20 week season (which could be increased with a solar heated pool) you would realise 70,000 (Euros), a 12% yield income on purchase.
Obviously, there are cheaper areas to invest in but that will limit the price per week that you can charge and the occupation period throughout the season.
Properties in the north of the country can benefit from both the summer and winter ski seasons, increasing rental season and potential.
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What advice would you give people looking to buy property as an investment?
Average appreciation in Italy has been around six to nine per cent per annum, though the lakes have seen increases of 10 to 15 per cent in the past two years.
The best investment return continues to be in property restoration, provided a customer has the right budget. For example, a person willing to invest 1M Euros in a finished property can spread that sum over purchasing and then restoring a property. The advantages are that with the initial purchase cost of around 30% – 40% of the total sum, the clients can then spread the balance over a period of approximately two years, so initially they do not need the full sum. Once they have designed the property to your specifications and it is complete, they will have a property that is generally worth 30% more on the market than their total investment.
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What it the average cost per sq metre of restoration work?
The cost to restore a property can range from 1,600 (Euros) / m2 to 2,500 (Euro) / m2, depending on required finish. If gold plated taps and Marble floors are to your taste, you will be looking at the higher end.
All work on properties in Italy is subject to VAT at 10% on labour and 20% on the purchase of building materials.
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How can clients be sure they are getting good value, quality materials and skilled tradesmen?
Italian Property works with people that have been in the area for generations, understand the local methods and can source suppliers of authentic materials.
It employs a team of master craftsman who have not only an excellent standard of workmanship, but also an understanding of the architecture, planning permissions and building regulations.
If clients contract Italian Property to carry out renovation, it can set tight spending controls and guarantee the quality of the finished work.
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What building restrictions and regulations apply in Italy? Do they vary between region?
Building restrictions are very tough in Italy. However, the advantages of this system easily outweigh any disadvantages incurred because you know the area in which you buy a property will in essence keep its natural beauty and historical significance.
Specific property restrictions are also strict, obviously depending on region. For example, in Tuscany and Umbria it is very difficult to get permission to add a window or door if it didn’t exist before, or even to enlarge it.
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