What must you remember when buying a property to rent out?
What must you remember when buying a property to rent out?

Interest rates for mortgage loans are quite low right now, and it’s possible to can earn more than 7% each year if you invest in a property in Italy. But where to invest, and what are the basic things you must consider?

Location

Choose the city very carefully because there are great differences between the prices, and their future possibilities. More well-known regions like Tuscany, Apulia, Abruzzo, Lombardy and Liguria always make for good investments thanks to their popularity and being ever-attractive places to live.

However, it always makes more sense to buy where you live. Finding tenants and solving their problems is much easier the nearer you are to them.

Some neighbourhoods within city centres may be more popular than others and more popular than places in the outskirts, although depending on the type of tenants you want  and the budget you have, other areas may be more profitable. It’s also worth looking into what the up-and-coming local areas are, to be able to plan for the future.

Basic considerations

  • It may sound obvious, but try to buy flats below the average market price. Do a full market study of all the areas you’re thinking about buying to make sure you don’t pay too much.
  • What are the maintenance costs? In older buildings, it’s quite common for expensive repair works to be needed, while newer buildings will have several years’ worth of guarantee for any damage there may be. Also, how many neighbours are there in the building? Depending on this, you will have to split common repair costs between more or less people.
  • Similarly, the apartment itself may need renovation work. Research carefully how much this will cost you before jumping in and buying because it could set you back a long time and endanger the profitability of the investment.
  • Buying on the coast or near the Italian lakes is always a sure investment. These places are always a pull for both national and international tourists, and so buying a property there can be a great long-term investment, especially if it’s well communicated with plenty of services nearby.
  • There are, of course, certain taxes and extra costs related with any purchase of a property, whether it’s second-hand or new.

Happy investing!