1) CONSIDER DIFFERENT REGIONS

Tuscany remains overseas buyers’ favourite part of Italy. Yet other areas such as Le Marche, Calabria and Abruzzo are far cheaper and also have stunning landscapes and beaches. Spend a few days at a time to see what areas you like best. Ensure you are within reasonable distance from local amenities, unless you deliberately want to be in splendid isolation. And when it comes to visiting potential properties, there is such a thing as too many. Trying to cram 50 into a weekend simply turns into a gruelling slog. By your 25th viewing, chances are you will struggle to recall much of what you have seen so far.

2) YOU GET WHAT YOU PAY FOR

Thanks to its picturesque countryside and famous tourist hotspots such as Florence and Pisa, Tuscany will always be in demand – and a solid investment. Yet it isn’t cheap and a farmhouse in central Tuscany can cost the best part of US$750,000. But prices can drop 50% if you head to Garfagnana in northern Tuscany. Despite the global real estate crisis, don’t expect huge 40-50% discounts, with 10% being typical.

3) FIND A REALTOR

Getting taken for a ride by some incompetent cowboy could prove costly. Genuine real estate agents must hold a professional licence, qualification and indemnity insurance and be registered with a Chamber of Commerce. Their publicity material and website should show membership of one or more of the following: AICI (Italian Association of Estate Agents), FIMAA (Federation of Mediators and Agents) or FIAIP (Federation of Professional Estate Agents).

4) KNOW WHAT'S RIGHT FOR YOU

Frances Mayes’ bestseller Under The Tuscan Sun inspired thousands of overseas buyers to try converting an Italian ruin into their dream home. Great in theory, but be prepared for the hard work and finance it entails. Budget up to Euro 1,000-1,500 per sq m for a total restoration. Whether you go for a fixer-upper or not, avoid taking on more space, land or facilities than you need. A villa with pool set in 10 acres sounds idyllic, but bear in mind the maintenance it will require.

5) DON’T SKIP ON A SOLICITOR
Many investors sign documents and then find they have made a binding commitment. Engage a reputable lawyer experienced in the Italian system. Are there plans to build a sewage works 500 metres away? Unpaid mortgages on the property? Built without planning permission? A good lawyer will avoid such pitfalls.

6) KNOW HOW THE SYSTEM WORKS

Once a price is thrashed out the buyer submits a proposta irrevocabile di acquisto with a downpayment of around 5% to take the house off-sale for around 15 days. If the purchaser’s surveyor and/or lawyer are happy with things so far both sides sign a compromesso, in which they both decide on a completion schedule. A second payment is paid, bringing the buyer's total downpayment to about a third of total purchase price. There are heavy penalties if either side pulls out at this stage. The last procedure is to sign the final deed of sale (atto di vendita) in the office of a notary, who examines all documents and lodges them with the Land Registry. The buyer pays the balance, usually by bank draft from an Italian bank. Thus he will need to have obtained a fiscal code from tax authorities so he can apply for a bank account.

7) FACTOR IN EXPENSES & FEES

Taxes, fees, etc add up to 10% on the price of resale homes and up to 15% for new constructions.
Typically, that could be up to US$280 an hour for the solicitor, up to US$2100 to a surveyor, US$7,000 for a notary and 3% to the estate agent.
 On new-builds, there is 4% VAT if within 18 months you register for official Italian residency – a relatively straightforward process. Otherwise, 10%. For older properties the buyer pays 3% of the cadastral value if residency is registered for within 18 months. Failing which, the charge goes up to 10% of cadastral value. Cadastral value is decided by the Land Registry based on factors such as location, property size, etc and is is far less than the property price.

8) DON’T GET SHORT-CHANGED ON FOREIGN EXCHANGE

Last year the Sterling-Euro rate ranged between a January low of £1/Euro 1.06 and a summer high of £1/Euro 1.19. So a UK buyer weighing up a Euro 400,000 villa could have faced shelling out up to £41,250 more just for taking the plunge at the wrong moment. Hence the importance of using a specialist currency exchange company, who can fix rates for future deals to safeguard against currency fluctuations. They offer better rates than a bank and could save you £16,000 on a £400,000 deal.

9) CONSIDER RENTAL

Will your property primarily be a holiday/retirement home or do you intend to rent it out at some stage? If so, proximity to transport hubs is vital. Aim for a maximum 1 hr 30mins from the closest international airport. In big towns and cities, consider proximity to public transport as not all visitors will have access to a vehicle. Properties near a beach always have superb rental potential and keep their value over time because of limits on further construction in coastal zones.

10) SPEAK SOME ITALIAN

Cercare di parlare la lingua, as Italians would put it. Bear in mind that in contrast to parts of Northern Europe, over 70% of Italians speak no English, among the lowest figures in Europe. Don’t be afraid to embarrass yourself as your attempts, no matter how clumsy, will endear you to Italians.

AUTHOR BIO
The author writes for Homes and Villas Abroad.com a property for sale in Italy website with a selection of nearly 3,000 Italian properties.

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