{"id":3696072,"date":"2016-12-07T15:42:32","date_gmt":"2016-12-07T20:42:32","guid":{"rendered":"https:\/\/newwebdev.wordpress-developer.us\/hauteresidence\/?p=3696072"},"modified":"2017-08-15T09:20:05","modified_gmt":"2017-08-15T13:20:05","slug":"exploring-italian-luxury-real-estate-why-you-should-invest-in-italys-historic-castles-and-opulent-villas","status":"publish","type":"post","link":"https:\/\/newwebdev.wordpress-developer.us\/hauteresidence\/exploring-italian-luxury-real-estate-why-you-should-invest-in-italys-historic-castles-and-opulent-villas\/","title":{"rendered":"Exploring Italian Luxury Real Estate: Why You Should Invest in Italy’s Historic Castles and Opulent Villas"},"content":{"rendered":"

Italy\u2019s economy stagnated in the second quarter of 2016. In the real estate market and in the luxury sector, in particular, prices keep falling and sales volume continues to rise. 2017 may be the best year to invest in luxury property in Italy.<\/p>\n

Why Invest?<\/strong><\/p>\n

According to Diletta Giorgolo Spinola, head of sales for Rome\/Tuscany Sotheby’s International Realty, the euro maintains its place of 20 percent lower than the dollar, which makes it profitable for buyers with dollars to buy low and sell at much higher prices when the market stabilizes. Luca Giovannelli, CEO of Casaitalia International, elaborates, \u201cWhen the crisis arrived, most of the owners [and agencies, too] didn’t recognize it at the beginning, so we had a period when everything was stationary; prices were too high, and the market went down.\u201d It took a while and in some places, several years for sellers to realize the situation. But even with prices being taken some notches down, a significant amount of property remained on the market. It was only two years ago when most of the vendors started to properly re-price that the market started moving. According to Giovannelli, since this year, many properties have been re-priced, making it possible for buyers to pay 20 percent or 30 percent less than they would pay for these properties five years ago. This is how the market appears in Milan and Rome. \u201c[It] give us a preview on the future evolution of the market,\u201d adds Giovannelli.<\/p>\n

Daria Burimova, real estate expert and analyst for Tranio.com<\/a>, suggests that the price decline has proven attractive to investors who follow the adage of \u201cbuy low, sell high.\u201d Investors adore Italy\u2019s current real estate situation because it is a buyer\u2019s market in every sense of the word. Burimova cautioned that once the recession property cycle has run its course, people will find it more expensive to buy. There will be growing competition and less demand. Prices will rise sky-high, possibly to the level of pre-2012 for investors. Today is the time to buy, since those who bought when prices were low will garner a huge profit at recession\u2019s end when prices begin to rise.<\/p>\n

\"'Villa<\/a>
‘Villa Carla Felice’ \u2013\u2013 Porto Cervo, Sardinia<\/figcaption><\/figure>\n

Marco Badalla, owner of Property at Lake Como, observes that the market for luxury property is growing. A new horde of homeowners have placed their villas on the market, while many castles and glitzy mountain-edge properties have hit the market for the first time.<\/p>\n

Cycles aside, high-quality property in Italy\u2019s primary and secondary cities are always in high demand among local and international buyers, particularly right now, as Francesco Papurello of Luxury Portfolio International indicates, \u201cPrices have never been so low, and the banks are giving loans.\u201d An example of one such property going for an attractive price is a country house featured by Casaitalia International with a magnificent view of Todi, a town and commune perched on a tall, two-crested hill overlooking Perugia, in Central Italy. The Realtors sold this estate five years ago for 2.5 million euros. Since then, it has been re-priced at 1,950,000 euros.<\/p>\n

Then there are the incentives. Spinola pointed out that property taxation in Italy is low compared to most European countries and the United States. Better still, capital gain tax ceases after five years. Finally, there\u2019s the splendid view. \u201cItaly has the best mix of quality of life, nature, history, and art, and is appreciated by international buyers looking for coveted destinations,\u201d says Silvia Miorini, brand representative for Immobilsarda, a\u00a0real estate agency for the Sardinia-Gallura Costa Smeralda market.<\/p>\n

Investment Challenges<\/strong><\/p>\n

Deep-pocketed investors are dealing with an exciting market. Opportunities are plenty, but chaotic times can present problems, as well. For instance, obtaining a construction permit in historical cities and protected natural areas can be exceedingly complex. In particularly popular areas, such as Lake Como and the Italian Riviera, it\u2019s almost impossible to find vacant lots for development purposes, Burimova reports. Bureaucracy can be at best a headache, and at worst, a migraine.<\/p>\n

As Papurello pointed out, cases vary. Here\u2019s the general consensus: First and foremost, the investor needs to determine his or her priorities. \u201cIs he or she after high yields or investment liquidity? These are two very common investment priorities that don\u2019t go hand in hand,\u201d says Burimova.<\/p>\n