Thought of relocating to Italy? It's obvious why, given that this country offers a wide variety of appealing sights, including great wine and food, a diverse culture, and beautiful scenery.
However, buying can be appealing in some places due to high rent costs because the investment pays off fast and you may be able to use the house to raise funds.
So, cover what you'll have to know in this guide. The most crucial advice and procedures for foreigners looking to buy real estate in Italy, and apply for an Italian mortgage are covered in this.
Learn more about this, the conditions, the warranties and time needed, in this article about Italian mortgage.
How does the Italian property market work?
The property market in Italy is now quite stable overall. This is especially exciting following the economic changes wrought by the coronavirus outbreak. Considering real estate to be a secure investment, individuals are committed to buying it. Additionally, the housing market saw a price rise of 1.1% during the year ending in February 2021.
Italian property buying mistakes to avoid
The threat of fraud is one of the major drawbacks of investing in Italy or any other foreign country. There is no need to fret much, though, as there are several ways you may defend your interests during the purchasing process.
- Never make a blind property purchase: Italy has an abundance of historical buildings, many of which have been abandoned for a long time and are now suddenly appearing on the market. As these homes may appear to be in good shape online, they are frequently filled with issues and may even lack functioning electricity and plumbing. It's crucial to conduct an in-person review and inspection.
- Verify the seller's authority to sell the house at all times: Among the most popular scams involves "false" owners selling real estate they don't even own and then fleeing when you get into legal issues or are unable to live in the house. Verify the property's ownership and registrations against the individual selling it to prevent this, but never leave with money unless you have a proper title in your hands.
While analysing every scam that exists can be challenging, a good basic rule is to follow your gut. It's okay to use the brakes when something appears odd.
How can I apply for an Italian mortgage?
As long as they satisfy the general conditions, the majority of Italian banks will grant mortgages to foreigners.
However, Italian banks are known for being careful lenders, so you might have to submit a ton of documents to demonstrate that you're a low-risk applicant. For instance, you will require your proof of residency, passport, and detailed proof of earnings in the form of bank records and work contracts. You might need to have your paperwork verified and translated into Italian.
The following is the procedure for obtaining an Italian Mortgage:
- The bank will examine your financial situation and property data.
- You will submit a non-binding mortgage application.
- An assessor will be hired to look over the house and note any problems.
- The bank receives a title verification report from the agent you hired, showing the seller's ownership of the property and its smooth transfer to you.
- If everything is in order with your funds and the property up to this point, the bank will provide you with an official mortgage loan.
- A signed date will be decided upon, after which the money will be given.
State of the property
Since many properties are thought of as restoration work, there are legally no criteria for real estate sales. If you're searching for a move-in-ready house, it's an excellent idea to hire your private surveyor to inspect the property when you buy.
The Bottom Line
You're set to go on an amazing new journey in food-loving, beautiful Italy once you've thought through your options, the cost, as well as the best way to explore. Wishing you success as you purchase your house!