Italy: Italy: A solid investment - Linda Travella, Casa Travella

Looking for a solid investment, try Italy

2010 promises more interest in the less risky world property markets. There is talk that in Italy, a well established country, property prices could increase by 3-5% in late Spring”, says Linda Travella of Casa Travella, who has been selling property in Italy since 1987.

Continues Linda, “2009 started off very slowly in all markets with the realisation of what had happened in September 2008.

That said, Italy suffered less than most other world markets and prices did not really start to drop in the first quarter unless clients were desperate to sell, where reductions of between 5 -10% maximum were reflected in both re-sale and new build properties.

Spring turned into Summer with the realisation that there were for sure, less buyers, and unless vendors were more flexible, clients would go elsewhere. This manifested itself in price reductions and vendors more likely to consider offers.

The last quarter of 2009 saw sales and interest returning, especially with Italy being considered a safer investment than many other markets around the world.”

Stephen Hughes, associate director at Foreign Currency Direct says, “There are plenty of positives for those looking to buy in Euros going into 2010 after a relatively stable second half of 2009.

Even though the UK appears to have fallen behind other economies in the race out of recession and economic recovery, Sterling has held pretty firm against the single European currency, trading two to three cents either side of 1.10 during the second half of last year.

Linda suggests that if you have the cash, try to make an offer by March as good bargains can definitely be found at the moment.

The housing market seems to be the driving force behind any UK economic recovery so these positive announcements can only bode well for Sterling in 2010 where it appears there will be several windows of opportunity to buy Euros significantly above the relatively low levels which have been the norm over the past few months.

As in the UK, mortgages are more difficult to come by, so if you work on 50% loan to value, you shouldn’t be disappointed.

If you want advice for areas to invest in for the 1st quarter of 2010, then I would suggest looking at Tuscany, Le Marche and the Lakes of Maggiore & Garda, where good deals can be found if you buy sensibly.” Says Linda

Linda Travella

Linda is director of Casa Travella - www.casatravella.com - and has specialised in Italian property since 1987. She has spent four years as chairman of FOPDAC, (the Federation of Overseas Property Developer, Agents and Consultants) and I am now Media Spokeswoman and committee member of NAEA International (National Association of Estate Agents), and a member of the Italian Chamber of Commerce, UK