Italian Lake properties are not only for wealthy people

Italian Lake properties are not only for wealthy people

In anticipation of the new summer season ee24.com talked to Ruben Coltof - the founder of one of the largest real estate companies operating in Italy Leisure Properties and found out that not only wealthy customers can afford to buy a house on one of the beautiful lakes in Northern Italy, as is commonly believed.

There is an opinion that only very wealthy people can afford to buy a property in Northern Italy, as the price level there is very high. Is it a myth or truth?

It is an absolute myth. In the famous North Italian Lakes region, there are beautiful holiday homes available starting from € 180.000 for a newly built one-bedroom apartment. The great aspect of this region is that there are properties for sale in every segment of the market, from € 180.000 to highly exclusive villas of more than 20 million euros. The general opinion about the high price level is true, if compared to other regions in Italy. The demand for properties around the lakes has always been very high, so yes, the price level always increases. But isn’t that what investors are looking for? 

Is the price level the same on the different lakes? Which lake has the most expensive properties?

Prices are approximately the same on the different lakes. The factors that most influence the prices per m2 are the location – proximity to the lake, the view – lake view or not and the type of building – new or existing. Based on these factors, prices are approximately from € 2.500 to € 10.000 per m2. Of course there are some highly prestigious projects exceeding these prices. Popularity also plays a significant role. According to independent reports, Lake Como used to be most popular and therefore the most expensive properties can be found around this lake. Lake Maggiore is the up and coming lake and can be therefore considered as the most popular lake of the near future. The prices of its expensive properties are now similar to those on Lake Como. 

Is it profitable to buy a property for renting it out? What are the most profitable properties for "Buy-to-let method"?

Renting out a property on the North Italian Lakes is highly profitable. Most of the buyers are from abroad and buy a second home for both leisure and investment purposes. A general trend is that the owner enjoys the property a couple of weeks in summer and rents it out for the remaining weeks of the season, in order to obtain a yield of 4% to 8% a year. Another advantage of the North Italian Lakes is their geographical proximity to famous Italian and Swiss ski resorts, which makes it possible to enjoy and rent out a property also during the winter season. The most profitable properties for the “Buy-to-let” method are newly built apartments in residences or resorts.

Many customers are worried that after buying a property of their dreams, they could not afford the maintenance. What are the average maintenance costs for apartments and detached houses/villas in the North region?

By buying a second home according to the “Buy-to-let” method, customers directly cover their maintenance costs with the income generated from renting out the property. The average maintenance costs for apartments in Northern Italy ranges from € 500 to € 2.500 a year, depending on the type of building/residence in which the apartment is located. The more public areas and services, the higher the maintenance costs. Detached homes and villas have maintenance costs of approximately € 2.500 to € 15.000. Of course, maintenance costs of € 15.000 only count for highly prestigious villas with spacious gardens and swimming-pool.

What is the situation regarding obtaining mortgages for non-residents?

Foreign customers can obtain mortgages up to 60% of the value of the home they want to purchase.  Depending on the client, Italian banks are still willing to finance properties in the North Italian Lakes region.

What kind of properties do the Russian customers buy the most?

The North Italian Lakes region is very popular among Russian customers acquiring a second home in Italy. Their interest goes out to two different property types. First of all the prestigious, historical villas with spacious gardens and lake-view are very popular.  However, more and more, Russian customers request spacious apartments in newly built residences, of course with swimming-pool and a splendid lake-view.

Text: Ivan Ulitin, ee24.com