3 Reasons why now is the right time to buy property in Italy!
The idea of moving to Italy has captured the imagination of many, whether they are attracted by the culture, the variety of food and wine or the stunning locations throughout the country.
No matter which part of the country you’re wanting to buy property in, whether in Rome, Milan, Naples or anywhere in between, you encounter a plethora of housing styles, ages, and levels of upkeep.
In Italy, nearly 70% of people own the homes in which they live, many attributing this to the astronomical rent prices making buying more attractive, as the investment is quickly paid off and the potential to use it as an income property is high.
There has never been a better time to become active in the Italian real estate market and this is why:
1) Prices have been forecast to stabilize in 2019 in Italy the number of sales has increased, however, the prices are still experiencing a standstill. But there are promising signals for a slow recovery in the imminent future: Milan has already registered a trend reversal, being the only one with a positive price variation. Other main cities will follow this trend in 2019, creating a very convenient window for those who want to buy a home in Italy. The demand for houses is increasing, both by those looking for a house as a primary residence or a holiday home further investigations also showed that during 2019, the housing demand, in the proximity to large cities, will be increasingly oriented towards rentals by young people and those who want more flexible living and working conditions, including
mobility, services and cost reduction.
These conditions will make Italian cities particularly attractive for real estate investment, mainly Turin, Bologna, Naples and especially Milan, with a focus on areas previously considered marginal.
2) Convenient mortgage rates achieving the dream of buying your ideal property in Italy has become even easier for those who need a mortgage due to historically low-interest rates. As far as the credit market is concerned, although the era of quantitative easing in Italy is now
over, the European Central Bank’s decision to leave monetary values unchanged should also keep mortgage rates low.
As for the benchmark for variable-rate mortgages, the Euribor, it will most likely remain in negative territory for a long time. However, a significant shift could occur in the Euribor in the first half of 2019, moving above zero only in 2020 (which in any case means very low rates), reaching 0.5% in 2021 and 1% in 2022.
3) Restructuring bonus an extension for the tax deduction for construction and renovation work carried out has been approved. Those who renovate their property can take advantage of a 50% IRPEF deduction up to a maximum expenditure of € 96 000 per property unit.
The restructuring bonus is open to all taxpayers subject to personal income tax in Italy (IRPEF), regardless of whether or not they are resident in the country. It is not only the property owners who can take advantage of this tax break but anyone who exercises the right of residence on the property where the work is being carried out, including tenants, co-tenants, members of divided and undivided cooperatives, individual entrepreneurs and more.
In addition to this many other tax, bonuses have been agreed upon, such as deductions for energy-saving and eco-friendly renovations, as well as a bonus for purchasing furniture or large household appliances at least belonging to A+ Class. Through this many real-estate opportunities have become more attractive to investors and to possible buyers.