11446 Rentin pitfalls

It is always preferable to rent first and buy later, once that you are absolutely certain that the area is right for you and that you have been able to compare prices, etc.
We made several trips to Italy before taking the plunge and we were only looking for a holiday home. If you intend to reside there, you have to be more careful.
Also, we rented houses or apartments in the areas we liked for short periods of time, it was holiday letting. We paid higher rates but it was right for us.
After a couple of years we knew what we were looking for and then, I saw our old mill advertised by one of the agents we had visited before (actually one of the agents we met through the Property Pages in this magazine). We quickly arranged for a trip there and in less than 10 days we had signed the preliminary contracts and given a power of attorney to our agent to look after the final contract.
It all looks very simple, but it took a long time to find what we wanted. And we are happy with our purchase.
Good luck with your project!

I agree it is a good idea to rent first, but if your use is to be only occasional I think you would be wise to look at holiday rentals, rather than taking on 'your own flat'. (A rental 2 bed near Lake Trasimeno will cost about €300 minimum per month, whereas a holday rental 2 bed will cost about €250 per week). There are plenty of rental agents around the lake, for either long or short term, and there are holiday lets available close to public transport (most conveniently in the Castiglione del Lago area perhaps, which gives you good access to trains to Rome and Florence).

(Sorry, I think I misread your post! Only visitors are going to be occasional).

I know some people who started renting and then decided not to bother buying at all.

They are a retired couple with no children, they rent a super apartment by the coast at approx €400 per month. To buy the property or similar would have cost €259,000 so they can rent it for over 50 years before it will have cost more than buying it.

Of course they will not benefit from any property price increases and their rent will probably go up, but as they have no one to leave it to the arrangement works for them.

How strange life is. Only two or three years ago I got my head bitten off on a regular basis here for screeching to everyone that they should rent in Italy for at least a year before buying.

There are so many benefits - no buildings insurance - no maintenance - freedom to leave/try another area without the hassle of selling a property at the end of the contract, blah, blah, blah.

I know there are strong arguments for renting rather than buying and even though I hate not having a home of my own, I am thinking of continuing to rent, having sold my house and not found anywhere suitable to buy, but I need something larger than my present place. It seems to me that most of the rental properties advertised in my area (northern Umbria) are apartments in town centres and I'm at a loss as to how to find an independent house for a couple with some land, even if very little. I suspect that, as in so many things, word of mouth is the route, but any suggestions would be welcome. I have tried quite a few estate agents and only one had a property to show me.

[quote=juliancoll;108377]How strange life is. Only two or three years ago I got my head bitten off on a regular basis here for screeching to everyone that they should rent in Italy for at least a year before buying.

There are so many benefits - no buildings insurance - no maintenance - freedom to leave/try another area without the hassle of selling a property at the end of the contract, blah, blah, blah.[/quote]

Ha!!! That’ll larn ‘em….bit your head off and you grew two more!:laughs::laughs:

Hahaha. A bit like a a Gremlin eh? My next reincarntion is going to be called "Gizmo". :bigergrin:

PS. "Gremlin" is the current nickname Neapolitans have given themselves.

JC, you could have used "Hydra" as a "nom de plume", she was good at growing heads. Anyway, you were right with your advice. It is always better to rent first and see how you go.

[quote=Stella;108401]I know there are strong arguments for renting rather than buying and even though I hate not having a home of my own, I am thinking of continuing to rent, having sold my house and not found anywhere suitable to buy, but I need something larger than my present place. It seems to me that most of the rental properties advertised in my area (northern Umbria) are apartments in town centres and I'm at a loss as to how to find an independent house for a couple with some land, even if very little. I suspect that, as in so many things, word of mouth is the route, but any suggestions would be welcome. I have tried quite a few estate agents and only one had a property to show me.[/quote]

Hi Stella,

When we were looking for houses for rent, we relied totally on word-of-mouth. I taught English and asked my students, which eventually led to the house we ultimately rented. I would ask everywhere you go including stores, restaurants, commune and check out postings on bulleltin boards if you see any.

[quote=Gala Placidia;108424]JC, you could have used "Hydra" as a "nom de plume", she was good at growing heads. Anyway, you were right with your advice. It is always better to rent first and see how you go.[/quote]

If I used Hydra as a nom de plume Gala - I'd be on the wrong forum! :winki:

We rented for just under 12 months, which gave us chance to :

1. Establish if a permanent move was right for us (inc 3 young children)
2. Establish the correct area
3. Take time to find the right house.

The village we first moved to, at the time, seemed a perfect location to buy, but after a month or so we realised it just wasn't right for us as it was too far out and not a great area for the children as it was too quiet.

So in a nutshell, renting first as far as we are concerned, is a must!!!

[quote=Robert Stoner;108347]I hasve looked at the advantages of renting as against purchase and have come to the conclusion that renting is preferable to an outright purchase in the first instance.

Does anyone have experience of this sort of transaction and what should I look out for? I would be looking in the Lake Trasimeno area in Umbria.

I would be looking for somewhere quite small, two people with only occasional vistors. I assume the rental would be metre based? What banking arrangements are necessary/useful/desirable?

My personal preferences are as follows

1) -access to public transport, I dont want to be restricted to the use of a car.
2)- situated in a populated area, I want contact with and to have more language experience with Italians and the networking that comes with that.
and lastly
3)- to keep my feet firmly on the ground.

Just off to learn a few more lines before rehearsal tonight

Robert[/quote]

Hi
we are by the lake, may be able to help you on this pm me

Lin

Buy in the UK? Shock Horror:eeeek:
Bargains are to be found in the UK once more (and increasingly so). But, with current exchange rates, Italian property has become very expensive in pounds despite a fall in prices.

If you buy the right property in the UK you could get pretty good returns that more then cover your Italian rent.

As an example: A 2-bed flat near here will set you back about GBP£250k once you have allowed for legal costs, remodernising, etc. The rent for the same property would be about GBP£550/month. So 2.64%

Rental rurns in the UK are about 8% (all depends on how well you buy) so you will need about 1/3 of the value in UK property to cover the Italian rent.

You could always purchase more UK properties and acheive further financial freedom and the security.....depending on personal circumstances.

Phase 2 - When exchange rates improve you then have even more Euros from your UK rent and your Italian property purchase will have become cheaper again. Get a mortgage on an Italian purchase and let the UK rent pay that.

The most important thing is that you are enjoying Italy in the meantime!

*This is obviously a much bigger topic with much more to consider then I have outlined above!

[quote=nigelaxis;109320]Buy in the UK? Shock Horror:eeeek:
Bargains are to be found in the UK once more (and increasingly so).................... [/quote]

True - 1 year old 2 bed flat in converted large house near me [SE Midlands] sold for £210.000 when marketed last year - 3 weeks ago it went up for auction and sold for £85.000
Rental return is about £500 a month, giving a gross return on investment of just over 7%

.

[quote=nigelaxis;109320]Phase 2 - When exchange rates improve you then have even more Euros from your UK rent and your Italian property purchase will have become cheaper again. Get a mortgage on an Italian purchase and let the UK rent pay that.

[/quote]

That's more of an 'if' than a 'when' - or could be! You have outlined one strategy, which - who knows - might be a winner, but it does involve a number of non inter-related risks, about as difficult to sanely evaluate as your average CDS...

[quote=Charles Phillips;109358]That's more of an 'if' than a 'when' - or could be! You have outlined one strategy, which - who knows - might be a winner, but it does involve a number of non inter-related risks, about as difficult to sanely evaluate as your average CDS...[/quote]

Yes...But not even the 'experts' can fully predict the market. That's why I added "*This is obviously a much bigger topic with much more to consider then I have outlined above!" My comments could prove dirt or diamonds and only time will tell. I hope they prove sparkly in coming 'years'.

The key thing though is to have a strategy that allows you to enjoy your life, whatever happens in the markets. Italy seems to be a part of that for most of the Italymag gang.......definitely me.

Renting is certainly looking more attractive now than it used to, either here or in the UK. We have decided to leave Italy, but will rent out our flat here and thus have a small income in euros.

At the same time, we are buying a small property on the coast in England, and will see how we get on there. If things go well financially, we will let out the flat in England too and rent a bigger place. And if things don't go so well, we might stay in the flat, or rent it out and return to Italy. Either way, the renting option gives us greater flexibility.

I've PM'd you Robert with a couple of suggestions.