Purchasing a property in Italy

10 Replies

Just got the news that I am moving to Aviano for the next three years! Anyone have tips about buying in italy? Specifically, where to get the loan? Any insight will help. -Joey
Originally posted by @Joseph Nichol :
Just got the news that I am moving to Aviano for the next three years! Anyone have tips about buying in italy? Specifically, where to get the loan? Any insight will help.

-Joey

 When I was a loan officer, I dealt with a guy from Italy who said they pay cash for houses in Italy. Not sure if that was just his village but you might want to email the embassy in Rome and ask.

@Joseph Nichol Don't do it! I just moved back from being stationed in Italy and had researched that idea, but there are so many issues with trying to buy property in Italy that it is absolutely not worth it. We even had an Italian Realtor come to our local REI group and tell us not to do it. It's very difficult to get a loan so you basically have to pay cash, there are zero landlord/eviction laws so local Italians end up just squatting in properties and not paying rent, and its nearly impossible to kick them out. Lots of other cultural reasons not to do it as well, but I won't go into it on this forum.

Thanks @Mike M. for the help! @Stuart Grazier dang can't believe its really that bad. Do you know of any laws against Airbnbing out my apt even if I'm just leasing it?

@Joseph Nichol I don't know of any specific rules against or for using AirBnB in Italy, however my experience was that all of the local rentals were managed through the base housing office, as they have to be approved by the military. You have to sign a lease through the base housing office and I am going to guess that they wouldn't allow for you to sublease (AirBnB) the property, but I am not certain, so it may be something to ask one of the housing reps when you are looking for a place to live. 

@Joseph Nichol Biggest issue (apart from tenant as mentioned by @Stuart Grazier ) is lending. Have you figured out how you will be financing this property? The retail banking system is very different in other countries. You're not going to get the same products and you will be at a significant disadvantage when buying foreign property (unless you have a sizable portfolio and deep lender relationships).

Originally posted by @Stuart Grazier :

@Joseph Nichol Don't do it! I just moved back from being stationed in Italy and had researched that idea, but there are so many issues with trying to buy property in Italy that it is absolutely not worth it. We even had an Italian Realtor come to our local REI group and tell us not to do it. It's very difficult to get a loan so you basically have to pay cash, there are zero landlord/eviction laws so local Italians end up just squatting in properties and not paying rent, and its nearly impossible to kick them out. Lots of other cultural reasons not to do it as well, but I won't go into it on this forum.

I am Italian who bought in the US just because the cash flow of a certain area in the US is unreachable in Italy.  

For an US citizen to get a loan in Italy is almost impossible, like for an Italian to get a loan in the US.

I fully agree about zero eviction law, but this does not apply to short term rent like AirBnB. I never heard about tourist eviction. 

Italian home-ownership mindset pushes the Real Estate prices high. Nevertheless we are now experiencing the worst crisis ever since the second world war. Actually the real Estate prices are falling down since 2007.

This is a foreclosure example in Downtown Rome, one the most exclusive (Via Veneto) area. Walking distance from the US embassy.

https://www.astegiudiziarie.it/vendita-asta-appart...

Furthermore in the '70 the Italian middle class used to invest in Real Estates due to extremely high inflation. At the time there were a strong requests for vacation houses. Such houses are almost vacant and most of them are in a beautiful places. The owners are old, they can not afford to keep them. On the other side the newer generation prefers short holidays, nobody buys vacation house.

@Joseph Nichol I am currently stationed at Aviano and Stuart is correct that you are not supposed to turn your apartment into an Airbnb. There are ways around it by listing it under a friends name but you will get in trouble if you get caught. I’ve thought a lot about buying in the area since the base is plusing up but haven’t been able to figure out how to make it work yet.

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