Refugee Crisis - any effect on your property / business?

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Beanie
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Refugee Crisis - any effect on your property / business?

Post by Beanie »

Hi All

We were looking into the possibility of purchasing a property in the Piedmonte area, either in the mountains or the valley. However, we're well aware that Italy is not only struggling economically but is also as badly saturated with refugees as Greece and neither country have the resources to cope with the vast quantities.

I feel terribly sad for Italy as it's my birth country and I spent many happy times visiting and holidaying there. I'd always hoped to buy there eventually and our plan had been to buy two smaller places, live in one and rent the other out for income.

I would value your candid opinions on the state of the country and particularly the refugee crisis and how these major issues may, or may not, be affecting your rental businesses, property prices, re-sell, your guests' experiences and your own experiences in Italy.

Many thanks in advance.
Giuliano
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Post by Giuliano »

Hi Beanie,
quite frankly, the refugees crisis has been quite exaggerated in the media (including Italian ones). Anyway, Piedmont has never been affected.
Apart from that, house prices are quite low here, so it might be a good time to invest. The only caveat is Italian bureaucracy, and I recommend that you entrust a local geometra with any refurbishment works and/or local authorizations.
Do feel free to contact me if you need further advice.
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Beanie
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Post by Beanie »

Ciao Guiliano

Many thanks for your reply. I'm not a fan of sensational mainstream media, so much of my research was done via social media (Twitter etc) where individuals have written about their own experiences or posted videos and links or via blogs and forums. It does seem to be pretty bad in many parts of Italy, plus refugees are being housed in smaller villages as well as the cities (which is also happening in Germany and Austria).

The thing is, it is being reported, via many channels, with some, I'm sure, exaggerating as you say, but hence I wondered if this might be a) putting off tourists wishing to visit Italy and b) affecting house sales/prices? You mention prices are quite cheap now, do you think they've decreased over the past 2-3 years?

I see you're in beautiful Umbria - do you mind me asking what the rough percentage split is by country on where your guests are coming from (not that it matters to me, as long as they come! I'm just curious!). Also, have you found bookings have been affected over the past three years?

One final question, do you happen to know if Italian properties can typically take years to sell, as they can often do in France?

Sorry for all the questions!

All the best
Hells Bells
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Post by Hells Bells »

Although our property is in France, we border Piemonte, and have spent quite a bit of time there. Property prices are low, as I do keep looking, but haven't quite found the right one. We viewed one property with 11 rooms, a brand new roof and boiler which is not selling for 47,000€.
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Beanie
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Post by Beanie »

Hells Bells wrote:Although our property is in France, we border Piemonte, and have spent quite a bit of time there. Property prices are low, as I do keep looking, but haven't quite found the right one. We viewed one property with 11 rooms, a brand new roof and boiler which is not selling for 47,000€.
Why don't you think it's selling?
Giuliano
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Post by Giuliano »

Hi Beanie,
no, property prices are low because of the overall stagnating house market, but they should soon be on the rise again (hopefully).
My property in Umbria is doing very well, with most tourists coming from northern Europe (especially Germany) plus a few Italians in the low season. I am almost sold out from May through September, and I am even getting some bookings for summer 2018! Apparently, even the earthquake has not affected tourism.
Typically, it takes months rather than years to sell a property here, but it depends on the characteristcs, the specific area etc.
All the best,
Hells Bells
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Post by Hells Bells »

I think the house is just in the wrong location. It needs a LOT of work, and although I could see its potential, its pitfalls were just too many.
I'll send you the link by PM
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Beanie
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Post by Beanie »

Thank you both for the helpful replies.

Giuliano, congratulations on your booking rate! It's very good to know that tourism is still strong and helping to support the country.

All the best.
Kirigiwi
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Post by Kirigiwi »

I agree with the others that the refugee crisis has had little to no effect on property prices or tourism.

Property prices have fallen hugely and still not really recovering. It took us 2 years to sell a small flat in the suburbs of Rome and we lost 30% of its value. We did this in order to take advantage of lower prices on larger properties, if we conclude the sale on the one we're after then that will have been 3 years on the market!

A phenomenon I'm seeing more and more recently is sale by auction "all'asta" of properties whose owners defaulted on their mortgage. You can get a huge bargain with these, especially if you are a cash buyer.

I get the impression tourism in Italy is on the rise again: people are nervous of going to Turkey and even Paris. Italians are, I hope, slowly slowly waking up to the unique resource they have, and not just relying on the mass tourism to big cities.
Kirigiwi
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Post by Kirigiwi »

Giuliano wrote:Hi Beanie,
no, property prices are low because of the overall stagnating house market, but they should soon be on the rise again (hopefully).
My property in Umbria is doing very well, with most tourists coming from northern Europe (especially Germany) plus a few Italians in the low season. I am almost sold out from May through September, and I am even getting some bookings for summer 2018! Apparently, even the earthquake has not affected tourism.
Typically, it takes months rather than years to sell a property here, but it depends on the characteristcs, the specific area etc.
All the best,

Also, Giuliano, I'm not surpised you are fully booked, your property is stunning!
Giuliano
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Post by Giuliano »

Kirigiwi wrote:

Also, Giuliano, I'm not surpised you are fully booked, your property is stunning!
thanks! :D
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