Buying a holiday home is an extremely important choice. Take as long as you need to find the right house for you. Read the latest news 2017/2018 on expenses and tax benefits for second homes.
In this article you will find a list of 7 things to know before buying a second house, according to the consultants of Immobilsarda Property Finder. For over forty years, they have been selecting for Immobilsarda’s worldwide clients the best properties in Gallura-Emerald Coast.
1. The reasons: why are you interested in buying a holiday home?
Before investing in a second house, ask yourself why you want to buy it. Indeed, the type of property to purchase is different depending on the reason for the investment. There are mainly 3 reasons:
- you are looking for a holiday home by the sea or in the mountains or in another holiday destination, where to spend your vacation and chill out with your friends and your family
- the need to have in a short time an income coming from a rental property
- to refurbish a valuable property and then resell it at the right time
In the first case, look for a house that best fits your needs and choose a location where to spend unforgettable moments. But if you are looking for an income, you need to know if the place where the property is located, is attractive for those who search for a house to rent and make an earnings estimate. In the latter case, take into account expenses but also tax benefits for renovation (Italian Law of Stability).
2. Real estate market trend
Keep up with the news of the real estate market and read the predictions. The year 2017 is still favorable to buy a holiday home. The properties prices are falling or stable. But the real estate market is lively. This is evidenced by the increase in sales and leases. There are also different ways of funding by Italian credit institutions.
3. Taxation on second homes and legal fees
Costs involved in buying a second house are one of the key points you need to pay attention to. The largest costs are the following.
- Price of the property.
- Purchase taxes, i.e. mortgage tax and cadastral duties. They vary according to many factors and if you choose to purchase a property by a private individual or a company. For example, if you buy from a private individual or a company VAT-exempt, the registration duty is 9% and mortgage taxes and cadastral duties are both 50€. On the other hand, if you purchase from companies that include VAT, you must pay VAT for buying a second house to 10%. Taxes are of 200€ each, plus the stamp duty (230€), registration (35€) and the fee for the change in ownership (55€).
- The legal fees for the purchase of a holiday home are about 0,60% of the total value of the property sold.
- Other fees are the provision of the real estate agent about 2.5% and the fees of investigation and/or expertise.
- Imu & Tasi (Italian Municipal Property Taxes), electricity and gas consumption, etc.
If you want to know more, please read the guide for house buying of the Revenue Agency, updated to April 2017.
4. Tax benefits
Tax benefits for the purchase of second homes concern tax deductions for energy efficiency and renovations. The internal revenue provides for a bonus of 50% for the renovations, one of 65% for energy efficiency, a deduction of 50% of VAT for those who buy directly from the manufacturer a house with energy efficiency classes A or B.
Tax relief on second houses is therefore a decisive factor if now you wish to invest and renovate your property and resell it when you deem it appropriate. The goal is to get a far greater income than the costs incurred to purchase and any fees paid.
5. Where to buy a holiday home
Before buying a second house consider carefully where it is. The location is one of the most determining factors of choice. You must take into account:
- the landscape value of the area
- any facilities like hospitals, transport means, roads, airport, parking lots
- the exact location of the property
Whatever the reason for your investment, the location of your future second house is really important. If you are looking for a holiday home by the sea, then you have to evaluate the beauty of the landscape in this area and the quality of the seawater. As well as the proximity of the property by the sea and the parking lots. If you want to rent your property, it is better to purchase a second home where there are all the most useful services for the tenants. Finally, if now you decide to buy a property to resell it in the future, think about the value of that location over time.
6. Range of services for those who buy or rent a second home
Buying a second home must be done carefully. It is recommended to contact a property finder that knows the geographical area where you have chosen to invest. The consultancy service is not only limited to the purchase. You need to contact a real estate agency that can help you even if you are interested in renting your home and for property management matters.
Think about a holiday home by the sea. Only if you have entrusted a real estate agency that works in that geographical area, you will easily solve all matters concerning the ordinary and extraordinary maintenance of your property.
7. Your future neighbors
Before buying take a look at your neighbors. The second house will be the place where you spend your vacation with your family and friends. You certainly do not want to be surrounded by unknown people who can spoil your treasured moments.
Immobilsarda is the property finder specialized for over forty years in the luxury real estate in the Emerald Coast, Porto Cervo and all over Gallura. As we explain in this article on the real estate market in Sardinia, the north-east coast of this wonderful Italian island has a great market value.
The Emerald Coast is perfect for your future holiday home by the sea because it possesses high landscape value. Immobilsarda has recently sponsored the event One Ocean Forum organized by the Yacht Club Costa Smeralda to protect the sea of Sardinia and all the oceans. The whole area is tourism-oriented, therefore is equipped with modern facilities and air services steadily increasing. The Olbia Costa Smeralda airport is the gate of Sardinia with Italy and abroad. Moreover, this area attracts a select clientele.
The Gallura region offers excellent real estate opportunity to make profit from renting or for sell and buy a property. The north-east coast of Sardinia is one of the favorite Italian destination of many tourists. Also, Immobilsarda has in its portfolio exclusive villas just a few steps away from the most appealing beaches of the Mediterranean. Their value is set to increase due to their rarity.
The team of Immobilsarda includes expert property consultants who are passionate about the real estate world and are able to assist you at all stages of the sale and in after-sale property management. Here are all the services provided by Immobilsarda for purchase, sale, rental and property management.