Cracking the Code to Your Dream Property in Italy.

Four Game-Changing Questions To Get You Started

Italy is renowned for its cuisine, stunning scenery, and rich culture, not to mention the Italian lifestyle that is envied around the world.  And it only takes a hot minute to google “properties for sale in Italy” to see that there are some incredible deals! 

I remember one client who came from Florida commenting “You mean I could buy this property for the price of a boat slip in Miami?”

Yes, I nodded.

And for him, the deal was sweet, the property perfect and he was ready.  For others, the decision to buy in Italy, whether it is to move or to invest, is more challenging.  This, for the most part, is because there are simply so many beautiful places to choose from.

To help make it simpler, here’s the process we go through when we help our Property Purchase Assistance clients find their dream homes in Italy, and you can ask yourself the same questions and see where you land.

Question #1:  Where do you want to live?

Step one is to focus on the location.  You can always make changes to the inside and outside of your home, but you can’t change the location. 

The location of your home will play a huge role in your experience living in Italy and if you plan to rent, it can have a major impact on your income potential. If you’re planning to live in the property (now or future) consider what type of lifestyle you want. Do you prefer the hustle and convenience of city life? Or do you want a more peaceful setting in the country?

Most people start to look at the area that they visited or have some connection to.  Although these areas may hold fond memories for you, they may not be perfect for your future new life.

For example, if you’re dreaming of a rustic farmhouse in the Tuscan countryside, just like the one you rented one summer, there may be drawbacks that most agents won’t tell you about.  Other than the cost of heating a large farmhouse in the winter can make you cry yourself to sleep at night, the most forgotten problem is that if you move to Italy, you will lose the right to drive under your home country’s license after 12 months of residency.

To continue to drive, you will have to take the notoriously difficult Italian driving test (all in Italian) that takes months of study.  Only then to find out that even if you do pass, you will be relegated to teenager status again, and be restricted to a small car and driving limits for three years.  If you don’t pass, and you are in a remote area, it will suddenly become very difficult to do even the most basic things.

Also, be sure to research things like services (hospitals, roads, transportation), weather, safety, and access to water. All these things may not be important on a vacation but are critical for your daily life.

Think of Italy like an onion, in that you must peel back each layer to focus on the heart of where you want to be.  The outer layer is the Region, such as Tuscany, or Sicily for example. Once you have narrowed down the region, then go to the next layer and choose the Province, (Abruzzo, Tuscany; Siracusa, Sicily) within that region and then the municipality (comune) (Cortona, Abruzzo, Tuscany; Ortigia, Siracusa, Sicily. 

Now that you have narrowed down the region, province, and comune, start looking at homes in that specific comune and surrounding areas, and stick to it. 

Question #2: How much do you have to spend?

Setting a budget before you begin house hunting is essential and will help narrow down your search even further. You can search for prices 10 – 20% above your top budget, but any more will likely lead to disappointment.  If you are considering getting a mortgage, and you do not have an Italian bank or income source, you should reconsider your purchase.

Hard to hear, I know.

The truth is, foreign income mortgages in Italy are extremely difficult to get, and if you are one of the lucky ones that get one, you can plan on only getting 50% of the purchase price and a reduced negotiating position.  (Listen to my podcast episode with our Mortgage Broker Armando Bechi) In fact, many estate agents will not represent foreigners who are seeking a mortgage unless they clearly qualify, as the chances of denial are extremely high.

It is better to secure the funds in your home country and pay in cash in Italy. This will also increase your bargaining power. 

When you evaluate how much money you can spend on a house, keep in mind additional costs such as exchange rates, transfer taxes, closing costs, commissions, and building inspections into the equation.  The best ballpark estimate is to factor 10% of the purchase price for closing costs.

Question #3: What are your deal breakers?

It is a fact that you will have to compromise with your search criteria. This is true wherever you buy.  The chances of getting 100% of your wish list is unrealistic.  So, instead of focusing solely on your wish list, make a clear list of absolute deal breakers, and use this as your guide.

Don’t waste time visiting or enquiring about properties that have deal-breaker features.  Let them go early and focus on the ones that stand a chance.  It is too easy to spend countless sleepless nights trying to make a property “fit” when it will never work.

Question #4: Are you ready to buy?

This is a big question and needs careful consideration. You need to consider if you are ready financially and emotionally to go through the buying process, and eventually own a property in a foreign land.

To be ready financially means that you have the funds ready to buy, and any financing that you may have to get has been pre-organized before you start to search.  To get the best properties, and deals, you need to be able to pull the trigger fast.

Do not underestimate the emotional preparedness that’s required.  If it has been your dream to own your own la dolce vita, then you need to boil down the dream to the reality of what it means to own property thousands of miles away.

We have worked with clients who have found the place of their dreams. Properties that ticked all the boxes and that were an excellent price, location, and investment.  They were ready to buy financially and have been dreaming of the moment for years, but when it came time to sign an offer, it was easier to find a technical reason to back away, when in reality, they were simply not ready emotionally.   You need to think long and hard if you are ready to start the journey of buying a property in Italy, and eventually owning one.

Whether you plan to move to live full-time, part-time, or buy as an investment, the process of due diligence and buying is very different in Italy, and it takes time and persistence.  If you’re ready, go for it!  Italy is a great investment. If you’re not, resist.  

Choosing a dream home in Italy is an exciting process, regardless of if it is a sprawling Tuscan Villa or a little apartment in a whitewashed town in Puglia, by considering these key questions prior to starting your search – location, budget, readiness – you will increase your chances of finding that little gem that you’ve been dreaming of.

Good luck!