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Buying costs

1. When buying a habitable property with little or no renovation costs you should consider the following:

PURCHASE PRICE: the listed or agreed price of the property
AGENCY FEES: generally 3 per cent plus VAT of the property price, or a fixed fee agreed with the agency
LEGAL COSTS AND FEES: these vary with the number of owners involved in a purchase

2. When buying a property that requires renovation consider all of the costs above, then add:

CONSTRUCTION OR RENOVATION COSTS: these vary with the type of property and the extent of the works involved. Allow roughly  Euro 400-800 per square metre for an apartment requiring renovation, depending on the extent of the works.  Allow between  Euro 800-1,100 per square metre for a house or 'rustico' that needs extensive renovation.  Rates at the higher end of that scale would apply to most houses requiring  extensive rebuilding, that is where only some of the existing walling might be maintained. Some village houses requiring renovation may be seen as virtually new buildings in that all floors, roofs, internal walls, plasterwork, finishes, services, and even some of the external walling, would be new.
PLANNING COSTS: fees paid to planning authorities and service connection fees. These vary,  but allow roughly Euro 1,000-2,000 for a rustico.
PROFESSIONAL FEES: these are set by the relative professional institutes, on average allow 10-15 per cent of construction or renovation costs
ARCITALIA FEES: if Arcitalia acts on your behalf, you will pay a set hourly rate agreed when you purchase (see below for Arcitalia's role in the design and construction processes)

The buying process
There are two major steps in the buying process, the contratto preliminare or compromesso and the rogito notarile or atto. The compromesso is an agreement to buy on the part of the buyer and to sell on the part of the seller. It is generally drawn up by the agent and a deposit  (10-15% of the purchase price) is paid by the buyer, and a date is fixed within which the transfer of the property should take place.  The atto is the process or contract through which the property is transferred.  Buyer(s) and seller(s) meet with a notaio to exchange the balance of the price of the property and sign the 'act' that transfers the property from the seller to the buyer. The buyer leaves the atto effectively in possession of the property and with all property, agency, legal and other costs paid. The period between the compromesso and the atto is generally set at two or three months, although a shorter period is possible with some properties.  During the period of the compromesso there is a great deal of traffic between the agent and the notaio as they prepare for the atto. The notaio is essentially a witness appointed by the State to ensure that the atto follows  the legal procedures.  Both the agent and the notaio are involved in the transfer of the property. Hence the relative higher fees paid to  the agent, and the relatively lower legal fees drawn by the Italian notaio.

Loans
Belpalazzo has a number of established links with local banks and other lending agencies through which you can apply for loans on both property for immediate habitation and property requiring renovation.   

Habitable property versus property to renovate
Whether property is habitable,  for renovation, or to be extensively rebuilt it is important to consider (a) total costs, (b) the quality of the property relative to your budget,  and (c) the future value of the property.  The relatively lower costs of property for renovation are offset by building costs.  Economically,  however,  there is no set logic that would place habitable property over property for renovation, or vice versa.  Habitable property offers the opportunity of immediate occupation. However, renovation offers the opportunity to determine the quality of the property created through the building process, and that in turn may have advantages in terms of the end value of the property, its value over time, comfort in terms of such things as insulation and double glazing, and maintenance costs over time.  In short, it pays to consider both options, especially in that Belpalazzo's  links with Arcitalia allows you to acquire property for renovation in security and comfort.

Coast versus hinterland
It helps to be aware of how prices vary between areas.  For example, in the area around Imperia, prices are generally lower away from the coast.  Prices also reflect the length of time an area has been within an expanding market.  Prices at the edge of the market area are generally lower, but as the market moves inland prices may rise.  It is also important to distinguish between the price of a property and its relative capacity to increase in value. As prices increase, expensive property may yield a quantitatively higher return.  But lower-priced property, or property in the hinterland, may yield a relatively higher rate of return in terms of capital values. In comparing different areas, buyers might evaluate an additional 10-15 minutes driving time from the coast against dramatic differences in property prices.  Buyers also vary in the value they afford to the sea or coast as opposed to the landscapes and amenities of inland areas.  It also worth noting that, as with Pieve di Teco, road developments can further improve links between inland areas and the coast. 

In terms of regional differences, Belpalzzo is increasingly working across the Italian Riveria, Piedmont and the Langhe. The area page illustrates some of the differences between the areas in which we operate.           

Houses versus apartments
Houses and apartments offer different advantages.  Houses are generally in small villages or in the countryside.  Apartments can also be located in villages, but the majority are in towns, and many are are in older buildings or 'palazzi' that were once the family homes of merchants. Village houses offer gardens or land, relatively closer contact with countryside, and the social conditions associated with the Italian village.  Apartments in small towns offer a more 'urban' or 'big village' social context and a wider range of facilities such as bars and restaurants. Social contexts and available facilities also vary between small and large towns. Apartments also differ from houses in that there is the immediate community of the 'palazzo' and the wider community of the town.  There are also architectural differences between houses and apartments.  In the areas in which Belpalazzo operates,  that may mean the choice between the character of a village house and  the a large apartment with vaulted ceilings, possibly frescos, and a strong sense of history.

New building from scratch
Depending on your needs and ambitions, you might consider building from scratch.  Economically, the cost of new buildings compares favorably  with renovation costs. Moreover, new buildings can offer benefits in terms of location where building land is available at the edge of a village or in open countryside, There is also the freedom to create an independent property, or a property with extensive gardens or land. Clients wishing to retire in Italy, or those seeking extensive gardens or land should also consider the possibility of a new building. The process of building from scratch is best approached by identifying an area  and asking Belpalazzo to find available land within that area.

 Arcitalia in the design and construction process
Clients purchasing habitable property from Belpalazzo may have little or no need for services from Arcitalia.  Clients purchasing property that requires rehabilitation or rebuilding, however,  have the option of using Arcitalia to generate a project, prepare design drawings, and act on their behalf in the construction process.  Beyond the ‘design stage’ Arcitalia operates on a consultancy basis, engaging in projects as agreed with the client.

In consultation with the client, Arcitalia provides the design used to apply for planning approval.  An allied professional then acts as the ‘director of works’ during the construction phase.  The role of that professional is defined by the respective professional institutions, and she/he assumes all the normal legal and other responsibilities for the organisation and control of the construction process, and for all quantitative and qualitative aspects of the development of the project on site.  In other words, the normal contractual situation for Italian architects, geometri and engineers prevails. Arcitalia’s involvement with the construction process will be as agreed with the individual client and charged on a time basis.  However, its primary role might be to monitor the construction process, determine detailed design issues on site in consultation with the client, and act as an intermediary between the client, the director of works, and other parties. Fees associated with the submission for planning approval and the subsequent construction process will be paid directly by clients to the ‘director of works’ generally as a percentage of all materials and labour costs associated with the construction process and at rates determined by the professional bodies.  Arcitalia draws a fixed fee to cover the survey and design or pre-planning approval stages of a project. That fee is generally agreed with clients at the point at which a property is purchased, and forms part of the costs involved in buying a property. The ‘design fee’ is generally paid either just before the atto, or on completion of the design process.  Any further consultancy fees generated in the ‘post design’ stages of a project will be paid at a flat rate per hour.

Management and aftercare
Belpalazzo can arrange for the management of every aspect of your property including payment of bills and property taxes, maintenance, repairs, cleaning, renting, care of gardens etc. The system works (in English, French or German) through a central 'contact' governing a network of local people in the villages and towns in which we operate. Thus, the system offers the possibility of a centralized system of management and an immediate response on the ground at a reasonable cost.  Other  management services, such as the registration of property, are provided through Belpalazzo.

Insurances
Belpalazzo has a number of established contacts through which you can apply for property insurance.

Renting and holiday homes
Belpalazzo offers a holiday home that is suitable for a couple or single person. The property is available to everyone, but a discount of ten per cent is offered to clients of both Belpalazzo and Arcitalia.  This particularly useful for clients to must make a number of visits when buying a property, or during the period required for renovation of a property.  For more details click here
 

               
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