Buying property in Puglia
- 31 January 2023
- Investing in Puglia
The Italian real estate market, for some years now, has been struggling to get back on its feet: the economic crisis and…Read More
The owner will then receive an income from short-term rents and will own a property with a potential increase of wealth as the prices of the real estate market increase over time. Another big advantage of buying a rental property owning a villa available for personal use at any time.
The properties produce a good annual return, with a lower purchase price compared with other tourist areas in Italy, but the process of buying a property in Italy can be difficult for foreigners, so we suggest you entrust an accredited mediation real estate agency. If you want to go ahead with buying a rental property in Puglia, there are some important steps that must be clear before proceeding.
If the purchase is aimed at introducing the property in the rental market and have the highest yield, it is imperative to choose the villa with the right features. In fact, the same investment, in two properties with the same value but with different characteristics will produce a different investment yield.
Moreover, choosing a villa does not simply mean identifying the type and location of the house. Besides an aesthetic and functional choice, all the technical and legal aspects relating to the building must be verified.
To avoid unpleasant surprises, in fact, it is necessary to make sure that the property has been built regularly or, if it was built illegally, to make sure that the owner has presented the request for a building amnesty and that he has obtained the concession issued by the municipality.
If you choose to buy a house directly from the builder, he should show you the documentation proving the regularity of the property. Otherwise, it is advisable to ask the seller for a copy of the building permit and the project approved by the Municipality.
Another aspect that matters on the choice of the property is definitely the price. The price of the villa is influenced by several factors: the area in which it is located, the type of building, the size, the finishing touches, the floors, the walls, the toilets, the doors and windows, the general conditions of the building and many others. In Italy, the seller generally tries to sell at a price slightly higher than the market because the practice of negotiation is very common, in some cases long and exhausting. For this, between the asking price and the actual sale price, there can also be a huge difference.
The advantage of having the support of a mediation real estate agency that knows the short-term rental market at this stage is crucial. First to have an initial analysis of the needs and expectations of the buyer, then for market analysis and a subsequent search of the most suitable investment opportunities according to the characteristics that may affect the investment yield.
After choosing the property, the buyer must declare his intention to buy the property by presenting a purchase proposal containing all the main terms of the transaction.
If the seller gives a positive response to the purchase proposal, a preliminary purchase agreement (compromesso) will follow and the buyer will pay the seller a deposit which is usually 15-20% of the property value. In the compromesso all the conditions established in the purchase proposal are reported and extended. Finally, in the presence of a notary, the actual purchase deed will take place.
Unless if you buy a ready-to-use property or a villa already operating in the rental market, after the purchase it starts a very delicate phase: the renovation.
Depending on conditions and characteristics of the purchased property, different operations are required and the support of an on-site intermediary becomes even more important for making the income generation of the property quick and effective. When it comes to building renovation, the main distinction is between ordinary and extraordinary maintenance. The first concerns, in short, the works that do not affect the structure of the property, the electrical or sewer systems, the external appearance. Ordinary maintenance work can begin to be carried out in one day you just need to present a start-up procedure to the technical office of the municipality, called SCIA.
The extraordinary maintenance has to do with all the changes that affect the layout and the structure of the property. To carry out the extraordinary maintenance is longer and more difficult. The first thing to do is to prepare a project that includes a possible extension, the swimming pool, the well for water collection, the biological sewerage, changes to external openings or roof, construction of external patios or walls, gates, parking lots, etc. Then the project paperwork must be presented to the technical office of the municipality that, after having approved it, passes it to the landscape department, which in turn must give its approval or suggest changes to the project. Finally, the procedure returns to the technical office which informs the owner about the costs to be paid and the list of documents to be presented in order to have the final go-ahead. This process, without someone present on-site, as well as being very stressful, can also last for years. In fact, it is necessary to follow the passage of the procedure in the various offices and to continually solicit the offices as soon as delays arise.
Once all the necessary permits are obtained, work can begin with a previously contacted works company. Also in choosing the company it is important the opinion and the support of someone who knows the territory, who has previously viewed some works carried out by the company, and who has collected references on it.
At the end of the work, it will be necessary to carry out a viability self-certification which will finally allow the introduction of the villa in the rental market.
Final decisive support from an agency that already operates and knows the short-rental market is with regards to finishing touches, decorations and furnishings in anticipation of the rent.
Now that your property has been chosen, renovated, furnished and equipped to succeed in the rental market.
Puglia Paradise, thanks to its experience in the rental market in Puglia, is the ideal partner for those who want to invest in a rental property with the aim of having high rental performance and a high and fast investment yield without stress.