Renovation

  Hi, My wife and I are looking to buy a house and renovate and hopefully make a bit of money from it. However, having read various books it looks like the chances of making any money at in Italy from renovating is nil, is this the case? We are looking at the Puglia region. We're not looking to be millionaires or anything, but fancied giving it a go. Any advise would be welcome.   Thank you   Antony   

Hi, on the contrary, I think now it's the time to buy, as prices are cheaper than they have ever been, at least here in Umbria! ...with the idea of selling when the market picks up again, possibly in 2-3 years time. Best investment are done when the market is poor...

Have you forgotten the tax implications regarding buying and selling a property within 5 years, Marco? Not every Brit is a wealthy property speculator, you know. Some actually want to live here permanently. And, I hate to remind you of this but property prices have fallen only to their real values. The real fall in prices is barely 10% and you woud lose that, and more, by selling within the 5 years.

Marco If UK based - if the pound rises in the meantime, UK based buyers of Italian property also lose out that way.   I bought when the  Euro was about 65 pence - if I sold now ][at about 90p] for what I paid then [in Euros] I'd make about 38% profit - [and the place is worth more now that 8ish years ago.] Now - if the reverse happens and the pound rises again [a big if at the moment] the reverse effect would occur for UK based buyers now.  In fact, as an investment for Italian based people, it would most probably pay to buy in the UK by converting your Euros to pounds

I completely agree with you alan h and mostly I agree with you as well marco-architetto (I've posted on this in the past). I will add, however, that if you are sterling based, then currency fluctuations easily outweigh property price movements in Italy (at least in the 'short term'). I personally know of one couple in the last twelve months who found their ideal property and had their bid accepted on it.  When the actual time came to complete, the price in sterling terms had risen by 8% because of sterling's fall. They still proceeded with the purchase but since then, sterling has rebounded and house prices in Italy have fallen by maybe 6%. Today they own a property that if they were to resell and convert the proceeds back into sterling, and when you include transaction costs, its quite possible that they would be looking at a loss of something like 25-30%. And this is all within one year. However, for anyone who's bought in the past, the euro's appreciation has easily outweighed domestic price falls. But the fact remains the same that currency movemements can have a huge impact on one's financial wellbeing. (And no, not connected to any FX company).

Dear Antony, I think buying something in Puglia is a wonderful opportunity. I am sure in 10 years will become the tuscany of the south. I am an architect and I have got my second house in Puglia. If you don't want to sell it out , you can still rent it , and appoint a local property manager. Trust me, in puglia you find some of the best houses in Italy. Beautiful vaults, lovely  courtyards.They are all made of stone and white lime render....  You could buy something already decent and restore it , to make it nicer.The prices are so low.... It's not a matter of money, it's a matter of quality. Sea sun and stone they last forever and more. Regards. Ella el@architecture-lab.co.uk

Hiya Does anyone know an English speaking realtor in the Grottaglie area we could converse with?

Dear members I just wanted to suggest not to publish your e-mail address for privacy and security reasons.  You can always use the Private Message feature (the link is placed on the right sidebar) . Anyway it's up to you, have a nice day, Valentina

ha ha.... I'm still laughing at the thought of someone having the mad idea they could make money from rennovating an Italian house! On the other hand if you have several thousand pounds you would like to 'donate' to a variety of useless cretins whose general response to any complaint is to shrug their shoulders and grin stupidly ( well wouldnt you grin at the thought of all that dosh you knew you'd be hanging onto come what may) then go-ahead ! sorry,sorry but this is me being totally cynical - feel free to throw the rotten eggs! www.myabruzzohome.com

A fairly well known fact that hopefully many are aware of, is that if it is an Italian quoting for work to another Italian he will give a good price, it is fairly certain that for a non-italian it will be 25% more. I have had this information from a good Italian friend who  was asked if the job was for him or someone English. 12Euros per hour for him, or 15 for the others. Just glad that I work with a company that does not inflate quotes in the same way, as I see them both for Italians and non Italians. We have had project managers trying to get their 10% for something that they know nothing about and could at no time advise, as beyond their " technical expertise" It is also not on when you sort out windows etc, and then the geometra wants to take his 10% for doing nothing

This is not an easy question and there is no easy answer. I would say that you need to know what you are doing and you endeavour to keep renovation costs within reasonable limits; otherwise, you end up with a "white elephant". But most important, it also depends on the initial price you pay for the property and how much those renovations increase its price. Good luck with your project!