Why Americans Should Think About Buying Property in Italy
With the current economic and political climate going on in our country, many Americans may be considering finding a second place to call home. Especially with the events of last year alone, many of those who could, have already taken off to their foreign estates to camp out the unrest and uncertainty in the states.
Ok well maybe it’s not that extreme for everyone in America, but nonetheless, the prospect of having a second home where you could build equity and enjoy as a place to get away from the tedium of everyday life has always been alluring.
With the current conditions throughout Italy’s real estate market, buying a property can serve as both a somewhat decent investment and a wonderful second home. Luckily the process of buying property in Italy is only slightly different than in the states and is a rather palatable procedure.
Favourable Prices
As many of us have seen throughout the years (especially 2008) a declining economic situation can prove to be a great opportunity to purchase real estate on the low. Italy has never really recovered from the 2008 financial crisis and their economic future is not exactly bright either (but that’s a discussion for another time, and perhaps a different audience).
These conditions have, however, made it so that financing a real estate purchase is easier than it has ever been. Interest rates have been at historic lows since the beginning of 2020, with an average housing loan rate of around 2.10%. A low interest rate combined with the generally low prices of Italian real estate makes it a great opportunity to get that perfect second home abroad.
(I do say generally because real estate in large Italian cities like Milan, Rome, etc, will have significantly higher costs comparable to other Western European metropolises.)
The Second Home Dream
Ok so here is the good part.
Italy is a wonderful country with its rich history written all over its many different regions. There are too many to go over in this short piece, but the choice of where you want to find your second home really depends on your interests and should really complement your current lifestyle.
If you live in a bustling city like Los Angeles or New York City, you may benefit from having a quiet getaway in the Tuscan countryside. And if you currently live a more quiet lifestyle in the country, you may want to take the leap and have a little piece of a vibrant city like Milan or Rome.
Either way, Italy offers an incredibly wide range of environments and surroundings for you to find your perfect niche.
The €1 Fantasy
You may have seen promotions online touting the Italian houses being sold for only €1, but there is a crucial reality check here.
Although these listings are completely legitimate, there is a fair amount of “small print” that you need to read before you decide you want to buy the €1 home.
That €1 will get you the house, but it will be in poor condition and you will have to commit to repairing it within a certain timeframe (typically 3 years) and pay insurance costs, along with a list of other administrative fees.
When it comes down to it, you will need to be ready to put in thousands more to renovate the property and make it habitable.
For someone who is looking for a second home to spend maybe a few months out of the year, properties like this will generally not be worth it.
Conclusion
Italy can be your next great adventure – it has an amazing variety of lifestyles, cultures, and living environments for you to experience. Through property investment, you can find the second home of your dreams.