Buying Venice Property

Venice is one of the most beautiful of the Italian cities and is unique in that it stretches across 118 small islands in the marshy Veneitan Lagoon. Famed for it’s beauty, many of the property owners in Venice are very wealthy and the best-positioned, most beautiful homes will usually have price tags with eight-figures on them.

However for property investors who wish to invest in property in Venice, Italy, it is possible to buy Venetian property for a lot less money.

The beauty of Venice for overseas property investors is that it is a tourist trap. Each year, many tourists visit the area thanks to the history, culture, architecture and unique atmosphere of the city. This means that buying property well will ensure a steady rental income for any property investor.

Although the property market has recently slowed, there is still interest in the housing market and prices are remaining relatively stable. In particular, the high-end properties have seen virtually no drop in their value and the city has seen very few repossessions or distressed sales.

Probably the best properties to buy for renting out are small apartments in grand old buildings. These flats feature the charm of Venice without breaking the bank and the flats should be easy to rent out to families on holiday in Italy. Small apartments can go for as little as 250,00 Euro.

If you are planning to renovate an old flat, be warned that making adjustments to notable historic buildings in Venice can take a long time to get all the necessary approval. Developing a building into a set of apartments is very challenging and will require a thorough understanding of the planning system to gain all the necessary permissions for the conversion.

When buying a property in Venice, it is advisable to put everything into writing – including your offer for the property. Once this is signed by you, the property vendor and the agent, it is legally binding. You will then have to pay a deposit – this will be returned if your offer is rejected. A further deposit of around 25% will then need to be paid once your offer has been accepted.

If the property vendor pulls out having accepted the larger deposit, they must return it plus some money in damages. It is a good idea to put any deposit money into escrow as this makes the money easier to retrieve if the vendor does decide to pull out of the property deal.

Tax is levied at 10 percent of the land registry value if the property you are buying in Venice is your second home. If you are planning to live in the property, the tax will be 3 or 4%. Do not be tempted to declare the property as your Venice home if you are not planning to live there as the local authorities will check.

You will also need to fork out some money for a notary – normally budget about 1% of purchase price – as well as a conveyancer (around 3,500 Euro) and around 300 Euro if you’d like a copy of the property contract in English.

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  1. From Italy’s Great Real Estate Sell-Off | Buying Foreign Property | Jul 5, 2010

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