Buying real estate – risks and personal experiences

Buying real estate on Lake Maggiore - procedure and costs

How do you find the right property on Lake Maggiore?

We started our real estate search from Germany. Initially with an online search via IDEALISTA with the right search filters. On IDEALISTA, you can also search in German and English, and most of the property descriptions are also translated.

We then contacted the local estate agents and arranged viewings on site. Being there in person was crucial, because the condition, lighting conditions, smells, neighborhood and surroundings can hardly be realistically assessed in photos.

We have had good experiences with planning viewings over several days. This makes it easier to compare different properties and you develop a feeling for prices, locations and typical defects more quickly.

We even inspected some properties again from the outside at different times of day to see exactly what the position of the sun was like or the noise level from the street or the neighborhood. What we wanted in any case: Sun, sun, sun, and preferably also in winter. If the house then faces east or is surrounded by large, shady mountains or trees, that’s not what we want.

What we definitely didn’t want: Constantly loud dogs barking in the dark or hordes of hikers making a pilgrimage past our dream house on Sundays, which lies sleepily in the supposed wasteland during the week.

If possible, you should also take a look at the traffic conditions in summer. Roads that appear idyllic and quiet outside the main season can mutate into motorcycle race tracks at the height of summer.

We took a week for our local property search and made 8 appointments with estate agents. To keep track of everything, I took screenshots of the individual properties and Google Maps on my tablet and added the name of the contact person and their cell phone number. I saved the whole thing in the order of the appointments so that I always had everything in front of my eyes and could navigate my loved one to their destination (almost) without getting lost.

The price level: in the past, people spoke of the lean (Lombardy) and the fat (Piedmont) side of Lake Maggiore. Even today, there are still more stately villas and grand hotels on the western shoreline than on the opposite side. This is where the rich and noble from Milan, Switzerland and Germany spent their vacations in the last and penultimate centuries. Of course, the eastern bank also offers grandiose residences, but it was traditionally less crowded. Of course, no two properties are the same and a direct price comparison between the two sides is difficult. However, we did not have the impression that the price level of the two sides was very different.

Only now, with hindsight, do I have to say that the surroundings or the nearest town to the property in question are at least as important as the property itself. We viewed a property in Tuscany – we didn’t know at the time that the region around Lake Maggiore was actually the best place for us in terms of scenery – and it was absolutely immaculate and would have suited us perfectly. Fortunately, we were in the area a few hours before the viewing appointment and drove around a bit. No, we absolutely did not want to live in this region. The landscape was very beautiful, but we just didn’t like the villages, shopping facilities and restaurants.

That’s how our little house in the mountains above a lovely village on the eastern shore of Lake Maggiore came to be. But here, too, we underestimated how much a place changes over the seasons: We visited the place for the first time in November: Everything was very quiet, some stores and restaurants closed for the winter, the shutters down and despite the good weather, there were only a few people out and about, apparently locals, few tourists. Just our thing! In August, however, when the Milanese are on vacation and populate their houses by the lake, when there is an event almost every weekend down in the village, when you can only get into your favorite pizzeria in the evening with a reservation, it’s too lively for us and so we spend the height of summer in Germany.

Before you can actually purchase a property in Italy, you will need a personal tax number (codice fiscale), which you should apply for at the tax office in whose jurisdiction the property you wish to buy is located. Each person who later signs the notary contract as the buyer must have their own number. This codice fiscale is also frequently requested for many other procedures – opening an account, registering for electricity, water, waste, gas, internet. The application is relatively quick. If you work with a good brokerage firm, they will take care of the registration for you. If you want to apply for the number yourself, you can find a step-by-step guide here: How to apply for a Codice Fiscale

What costs are incurred when buying real estate?

Once a suitable property has been found, a so-called “Proposta d’Acquisto”, a written purchase application, usually follows. This is often combined with a small deposit (usually 2%) and signals serious interest to the seller. The form for this is prepared by the estate agent. (Apropos: I would absolutely advise against buying a property without a real estate agent, as they prepare all the documents and also help with registering with the utilities etc. later on).

Legally, the Proposta d’Acquisto is not yet the final purchase agreement, but it is an important intermediate step to create a binding obligation.

This is usually followed by the preliminary contract, the “Compromesso”. This sets out the purchase price, schedule, handover date and important details. From this point onwards, the commitment is much stronger. Here in particular, you should pay close attention to what is included in the purchase, what furniture remains, what work still needs to be done and what deadlines apply.

In our case, once this first installment had been received by the seller (it can also be via an escrow account), a preliminary contract (contratto preliminare) was signed by all parties in the presence of the estate agent.

Many details can be arranged individually. For example, we were very interested in receiving a key at a very early stage so that we could plan the renovation work with an architect. That’s why we paid a significantly higher deposit (20%) and the sellers gave us a set of keys immediately after signing the preliminary contract.

This preliminary contract also contains an important passage, namely that the property is in compliance with building regulations.

Once the preliminary contract had been signed, a formal process was set in motion that is very different from that in Germany: The seller must prove that the property is in perfect condition in terms of building law. As a rule, the seller commissions a publicly appointed surveyor to inspect the property for compliance with building regulations. I don’t know whether a surveyor is mandatory for all property purchases, but it should definitely be done. The surveyor compares the property in detail with the documents available at the land registry. This concerns both the plot and the exterior as well as the interior of the building. In Italy, many things are also subject to approval in the interior.

As soon as the surveyor has drawn up his report and the transfer of ownership has been reported to the tax office (this was also done by our estate agent), the notary appointment can be made. The remaining purchase price is then due, which we have transferred to an escrow account with the notary.

The actual closing finally takes place at the notary’s office. The Italian notary plays a central role in this process. He checks the ownership structure, ensures that there are no encumbrances on the property and ensures correct entry in the land register. Compared to other countries, the notary in Italy is a very important safeguard for buyers.

Unlike in Germany, there is no binding rate for the notary’s costs. In our case, the costs including contract translation and interpreter were significantly cheaper than they would have been in Germany.

But what you should pay attention to is the following: Taxes are payable on the purchase of a property. If the property is used as a second home, it is 9% of the cadastral value of the property; if the property is used as a main residence, i.e. the residence is actually registered in Italy, it is only 2%. But don’t worry: the cadastral value is always well below the purchase price of the property, in our case it was only around a tenth of the purchase price.

Please note: In Italy, no distinction is made between primary and secondary residences. There is only one residence (residenza), but you can own a property and live there. If you register your residenza in Italy, you will also be liable for income tax in Italy and will receive an Italian identity card. Click here to go to the website of the Federal Foreign Office for more information if you want to settle in Italy: Federal Foreign Office

How does a real estate purchase in Italy work? In our case, the notary had the purchase contract translated into German and also appointed a – very good – interpreter for us. So we had a German and an Italian version of the contract to read along with and the interpreter helped us with any questions. So far so good. But as described above, the devil is in the details. So please double-check the building law status of the property. It is very important that you look for an architect during the purchase process who is well known to the responsible local authority (only he knows whether, where and how things can be simplified or accelerated) and with whom you can communicate well in terms of language so that you can discuss any legal details.

I can’t give any recommendations on the subject of architects at the moment, but we were very satisfied with the notary and especially with the translator she appointed. Unfortunately, the website is only in Italian, but the notary Barresi in Varese speaks very good English:

Olivia Barresi
FBV Notai Varese
https://www.fbvnotai.it

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