Have you been contemplating buying property in Italy but are not sure when is the right time to pounce?
Well, consider this your call to action, because now’s the time!
With the COVID-19 pandemic lockdowns starting to ease, now is the perfect time to consider buying property in Italy. Since the pandemic, prices have fallen, properties have become increasingly available, Italy’s new ecobonus has decreased renovation costs, and teleworking has become the move of the future.
Clearly, there is no better time to buy!
And if you are worried about realty agencies being open, don’t be.
Realty agencies have officially reopened their offices, taking care to respect social distancing and sanitary measures, and are operating virtually. They have started offering virtual tours, digital documentation, and video conferencing to help you successfully find a property.
Post-lockdown Price Drops
Since lockdown, the demand for property in Italy has drastically fallen.
There have been close to 100,000 fewer sales compared to years before the pandemic, and up to 20,000 property sale cancellations throughout Italy due to the coronavirus outbreak.
When interest falls, so do prices.
Currently, interest rates in Italy are depressed, signalling a prime time to buy.
Of course, prices depend on how quickly the owners decide to sell, but with prices continuing to drop, especially in smaller towns and in the South, now might just be the perfect time to start looking to buy a property.
Another outcome from the pandemic has been an increase in the number of houses placed on the market.
Because Italian banks have been more willing to provide mortgages, low interest rates, and short-term leases, there have been more opportunities for property ownership.
Many properties that previously served as accommodation are being placed on the market as people choose to relocate or return to their family home.
Italy’s government also recently released what they are calling an Ecobonus. This renovation bonus is essentially a tax deduction of up to 110% of the expense to upgrade your property’s sustainability measures.
It covers any procedure aimed at improving energy efficiency or seismic risk reduction that improves energy ratings by at least 2 classes.
The purpose of this tax deduction is to encourage homeowners to invest in environmentally friendly precautions to improve Italy’s sustainability effort while also creating job opportunities.
Some examples of installations that would be covered include
- Roof and wall insulation
- Energy-efficient heating and cooling systems
- Earthquake-resistant structural improvements
- Electric car charging ports
The Ecobonus became effective starting July 1st and will continue to cover costs until the end of 2022.
It can be applied to
- Condominium apartments
- Low cost homes
- One and two family villas
- Second homes
- Detached homes
Castles, along with places that hold historical or artistic merit, are unfortunately excluded from the Ecobonus. Chances are though, if you are planning to buy property in Italy, it will most likely not be a castle. So no need to worry.
People who are looking to buy property in Italy can also benefit from the Ecobonus. They too will be able to upgrade their property or developmental measures with approved renovations as soon as they start paying Italian taxes.
One of the more desirable impacts of the COVID-19 pandemic has been the surge of teleworking opportunities.
Because in-office working is on the riskier side of social distancing, the number of people working from home has drastically increased. Recent polls suggest, businesses that were forced to go 100% virtual throughout lockdown, will still offer employees the option to continue teleworking despite gradually loosening regulations.
Teleworking will become a choice, and in some cases, the encouraged option.
But what does this mean for property purchases?
So long as you have a reliable wifi connection, you can work from practically anywhere.
With teleworking becoming the preferred method of work, the possibility to work from various locations also becomes available. This means, many workers now have the flexibility to relocate without worrying about their job― the option to buy property in Italy has never been more attainable!
Moving to Italy is also an excellent way to save money, as choosing to live in a small town or even a city in Southern Italy is considerably cheaper than many other places throughout Europe.
If you are seriously considering buying property in Italy and moving there, it may be a good idea to do some preliminary research on different regions within Italy to gauge your purchase options.
You can check out this guide to buying property in Italy to learn more about the best places in Italy to buy and what to expect when getting there!