keyitaly.com’s blog

The turbulence in US and UK property markets during 2008 hasn’t just made a lot of buyers and sellers very nervous. For professional property investors, the much-villified buy-to-let investors, it creates an interesting conundrum – where do you invest if you don’t want to get into the UK market just now. Increasing numbers are wondering about overseas investment property and buying investment property in Italy.

The reasons for caution at home are pretty clear – why would you buy anything in the UK just now when even the most bullish estate agents are talking about 5% falls in prices over the coming year? The more bearish, and disinterested observers of the market predicting a stomach turning fall of 25%. But those looking for safe havens in overseas property markets need to be cautious too. There have been some very nasty shocks for property investors in Spain over the past year, with overbuilding, and investors – eager to get into the market – paying over the odds. Britons have also piled eagerly, and sometimes unwisely, into frontier property in Eastern Europe. When the hype dies down, Bulgaria and rural Slovenia have a long way to go to having the infrastructure that will make them investment sure bets.

In this climate, investment property in Italy looks a much safer bet. Italy is an attractive and diverse country, with a solid infrastructure, superb food and wine and a culture that’s appealing to holidaymakers. Even those who’ve never set foot in the Bel Paese will know Rome and Venice, Florence and Milan. Anywhere on the peninsula you’re going to find attractive regional centres – property investment in Rome, Naples, Bologna Amalfi or Sicily is far less of a risk than in the ‘new markets’ of Eastern Europe.

But if you’re looking at overseas investment property and buying investment properties in Italy, the same rules apply as back home. Don’t go for the big new build developments – you’ll pay a premium for new property and if you’re looking to rent you’ll likely be competing with lots of other buy to let landlords. Character properties, one-offs alongside a street of residential properties are always a better deal. And look for value, it’s a buyers’ market just now. You could do a lot worse than look at some of the auction property online UK websites for bargains.

Property in Italy