How to Buy a Property in Italy – The Basic Investment Process
The process of buying a property in Italy is quite simple, although one might want to pay attention to the different details associated with purchasing or investing in a property. An Italian lawyer who is knowledgeable in buying property in Italy is a valuable source of information and can serve as a guide when one goes about the buying process. The lawyer can give sound advice regarding the purchase and can also provide more information about the region where the property is located. The lawyer can also verify the safety of the property and, most importantly, determine if the property has complied with the different regulations of the state.
In case a buyer decides to invest in a property that is already undergoing stages of development, the price would come from the developer. The prices can vary, and developers may ask for an initial deposit or arranged payments during certain phases in the construction process. Holding deposits can differ in each property being sold, and are usually made payable up to one month after the holding deposit is placed. Usually the lawyer uses this period to check the property and other documents about the property to see if he/she can find any faults. As soon as the lawyer is done, he/she will tell the buyer if it is safe to proceed with the purchase or not.
There are corresponding fees and taxes that are linked with the purchase of a property. Usually, the associated costs are about 7.5% to 18.5% of the total purchase price of a property. In case the buyer is planning to relocate to Italy and use the property to build his/her new home, it is strongly advised to do the purchasing in advance. This is to prevent any delays associated with the processing of documents. Buyers can ask their lawyer about the different fees and taxes associated with purchasing property in Italy, since these may be subject to change without any prior notice.
Getting the money to purchase the property is simple as well. Buyers can decide to take out the mortgage from a bank in Italy, or they can decide to get the equity from the property. When a buyer decides on getting a mortgage from an Italian bank, he/she has to set up a bank account. They can also take out a loan from a bank in their home country and use the money to finance the purchase; this loan will belong only within the country where it was transacted, and the buyer is free to pay for the property using cash. It is usually 70% of the property value that is used as the optimum loan to value amount.
These are just the basics of investing, buying, and financing for a property in Italy. In case a buyer has more questions about the process, he/she can consult his/her lawyer.