01 June 08
Property
Property
As of 2007, the EU has already pledged €7.5 billion for Southern Italy and Sicily – and, as well as the airport upgrades and bridge, there are plans to modernise the motorways between major towns.
Many homes on the island are cube-shaped
houses with flat roofs. Yet it’s worth noting
that a number of illegally built and lowquality
resort buildings have been constructedin previous years,
meaning it’s vital to
get quality, local legal
advice before buying.
According to Gonzalez,
further restrictions are
planned to preserve
the island’s beauty and already development is
not permitted within 250m of the coastline.
While such measures will keep pressure on prices, they are unlikely to stop demand. The Syracuse province has a large expat community, and prices in the area rise quickly – especially as you move towards the coastline, such as the world heritage town of Noto.
The busy resort of Taormina, with views of Sicily’s famous Mount Etna, has prices on a par with Tuscany, in the region of over €300,000 for a large house. A less expensive area is Ragusa, where price growth has attracted investors. And Cefalù is a mature development resort, close to the island’s capital, Palermo.
About 5 million people use Palermo airport each year, and tourist entries are rising, so rental return on buy-to-let properties is healthy. In Taormina, owners can expect about €735 a week for a two-bedroom property, while in Cefalù it’s about €1,680 for a four-bedroom villa. The rental season is mainly April–November, and income in August is about €1,000 a week, so it’s well worth thinking about.
Facts & Figures
AREA: 25,706 km²POPULATION: 5.2 million
CURRENCY: Euro
HOUSE PRICES: Agents estimate house prices are rising by about 15%–20% per year.
RENTAL YIELDS: Estimated at 6%–10% (The Right Move Abroad UK)
AGENTS: Agents can be found by contacting the Italian Federation of Real Estate Agents (FIAIP), which has about 8,000 members across Italy. For details, visit www.fiaip.it.
BUYING TIPS: Local builders cater mainly to the Italian market, which likes to have studios and one-bed apartments. But this is changing, as overseas buyers generally prefer a minimum of two bedrooms. There are many attractive old properties in Palermo that can be bought and restored, and the government even offers grants to help with the cost of restorations, although the administration can take a long time.
TAXES: Rental income is subject to income tax, and rates are 23%–43%. Capital gains tax applies only to properties sold within five years, and income tax rates apply. A property tax is also charged, and is 0.4%–0.6%.
AVERAGE PRICES: Prices vary from €35,000 in rundown rural areas, to €300,000 in the main resorts, but average three-bedroom houses cost about €230,000.
Comments
Post a new comment