105 To buy or not to buy.. that is the question..

This is the eternal question.

When we were looking to buy we mapped out what we really wanted from a place. Was it sunshine? Was it proximity (could we be there in 3 hours etc...)? Was it payback (could be rent it out it would pay for itself)? etc....

We went over & over these questions for AGES until we concluded:
- we could get a place that would rent out easily, but we might not like it; to the UK 'market' the Spanish costas are a popular, pile it high & sell it cheap destination......we knew we could get somewhere there & rent it out 75% + of the time.........but never go there!
- we could get a place that we'd adore, but as a result, it may not rent out...... we concluded that if this was our option, we'd have to buy outright so we are not obligated to get rentals to pay out way.......if we did not get rentals, the place in Italy would be in risk & that would be bad.
- we could get somewhere in the UK & let it out on a long term rental & "make the most of our cash"........but that was rather sensible & not part of 'the dream'.
- do you want somewhere now? Could you buy somewhere that needs work (and thus could might be able to buy outright) and sit on it whist you build up your savings & not be in debt?

I guess you should consider:
- buying in the US & living off the earnings of that.... it might provide you with enough 'profit' to still visit Italy on a regular basis & stay wherever...you'd still have the mortgage in the US being paid off too!
- buy in Italy & have a mortgage, but then you will have to rent it out & (maybe) compromise on what you are looking for
- buy out-right & bide your time......but then you won't be able to stay there & STILL have to find the cash to visit!
- state of the dollar......it's not a good exchange rate at the moment, so consider waiting a few years!

........I guess this is no help at all......but we concluded that we just wanted a place, didn't want to be in hock & didn't want to be compelled to rent it out. I would advise you never to buy a place on the sole premise that it will earn you money....or even that you'll be able to sell it. Listen to your heart & don't comprise your 'today' security for a pipe dream....this way if it all goes wrong you still have a home!

........ours didn't go wrong, I was a total pessimist & we have never looked back!

Good luck, which ever way you decide to go ;0)

What pushed us into buying was posing the question "will we regret not having given it a go?" in 5 - 10 years time.

We decided that to at least have tried was better than thinking "what if"

We bought a property to the north of Barga ( approx 40 minutes north of Lucca), just over two years ago with a view to spending 5 weeks a year in the house and letting it for holiday rentals for the remainder. We had an initial three year deadline with a minimum target of making the rental income cover all associated costs - cleaning, laundry, advertising, gerneral running costs, etc.

We were successful enough in the first 18 months to start looking at moving permanently - we will hopefully complete our move during the next 3 - 4 months.

I know it's not the most scientific approach but I've kept an eye on the various websites that I originally used and it appears that property values in Lucca and northern Tuscany are rising steadily. We have been advised that we could get just under double what we paid for our place!!

Best of luck

My wife and I have had two buying trips to Italy and after viewing over 20 properties we have just made that leap of faith.

We are in the process of purchasing a total ruin and eventualy building our 'dream' home..........yes it is a dream, but as the song says " if you don't have a dream, how you gonna make that dream come true"

I know you have to make a decision, based on your circumstances.

But will you still be working through your decision process in 5, ,7 years or more.

I don't wish to sound like I have eaten the book of homespun philosophy but life is not a rehearsal and you only pass this way once.

I'm not helping much am I dad............English television joke.

Viola

We have been through similar deliberations - retiring hopefully in 8 years time -so should we wait and buy then. BUT we want to enjoy more italian culture now and put down some roots. The habital but run down farmhouse we hope to buy will give us great holidays and weekend breaks over the comming years until we can find time/money to complete works.

My only regret .... is that it has taken us so long to decide to do it!

If you are following your heart then buy now. Just knowing you have a home in Lucca will make you feel happy even when you are away from it.

If you are following your mind then you should not buy now. The US Dollar is at historical lows against the Euro, and the Euro is way overpriced against most world currencies. In addition the Italian economy is not wonderful at the moment, so it is unlikely that your appartment will increase much in value (in Euro terms) over the next couple of years.
As you will not be able to add value to your Lucca appartment from the US carrying out renovations, improvements etc, and you will only be staying for 3 weeks per year - it would be a poor investment.

I would recommend you purchase property in California and rent it out. The rentals will cover your mortgage giving you a profit each month, the value of your properties will increase in the next 24 to 36 months (if you invest wisely), and the dollar should appreciate by 15-25% over the same period. Assuming you have around 250,000 Euro earmarked for your Lucca property, the profit on the rentals generated by an equivalent US property portfolio will easily pay for you to have a wonderful holiday in Italy each year, and the capital appreciation of your US properties can be added to your nest egg when you sell up and arrive in Lucca ready to purchase your dream appartment. By then the dollar should also have appreciated in value giving you an extra 25-50,000 Euro which will cover all your fees and purchase expenses etc.

Of course that's just MY opinion!

I can't thank you all enough for your very very very helpful insight. You brought up points that I may have just glossed over, and others I did not even think of. It's nice to hear personal experiences and other opinions to bring some reality and facts. Thank you all again.

Have just read the entire thread, very interesting.
Our experiences would encourage us to advise you to follow your instincts.

Do consider coming to look at Lazio though. We were originally considering the Lucca area and north of there but for many reasons decided to look further south.

Northern Lazio is a beautiful and diverse region and within easy reach of the coast, mountains and international airports of Rome. The lakes and hillside towns are just as beautiful as Northern Tuscany.

Generally property is still cheaper here as the region is still undiscovered.
Do try and come and take a look sometime, we think you will be pleasantly surprised. also our advice would be buy now, not in five years time. Until you are ready to come and live here permanently you can enjoy holidays and planning for the future!

We arrived in the area just a year ago, so if we can be of any further help do not hesitate to get in touch.