All Forum Posts by: Elizabeth B.

You need to be an EU resident to take advantage of the scheme. 

It's cheap to buy inland property in Sicily; our little place was 7500 euro a number of years ago. Like many of these places, it had nothing modern inside; we installed a bathroom, basic kitchen, etc. The town is one which had lost most of its best and brightest, and which had a hard time attracting investment. We considered making it our retirement home, but the town is too small for us to enjoy long-term: we prefer larger cities with a more diverse population. We've been successfully renting it on Air BnB but will put it on the market next year (after the 5-year capital gains tax is lifted) and use the proceeds to renovate another historic place in a Sicilian town we enjoy much more.

@Michael Lemieux

The island is underrated - and properties can be incredibly cheap to buy. Property taxes are low as well.

Renovations are more a labor of love than a great investment, but with a trustworthy manager costs can be kept under control. It tends to be foreigners who are willing to take on the expense and hassle of renovations, particularly for properties away from the coastline.

Back to your question: Property ownership can get complicated due to titles owned by large families, or titles which weren't transferred properly (esp in the countryside). If you're interested in a particular property or region, contact estate agencies in the nearest town. Sicily is still developing and you'll want to do due diligence before buying anything.

I have been very happy with the agency I used to buy my property in Agrigento province, they have an English-Sicilian representative and have a reputation for honesty, fair pricing, and great follow-up. While they focus on the town where they're based [Cianciana], they have contacts throughout Agrigento province (mods feel free to delete, I can send in a PM instead) http://www.ciancianamyhouse.it/home/en

@Jean Bolger

Don't give up! As a creative worker, you have a unique niche you can offer guests if you want to have holiday accommodation in the Mediterranean region. I've been happy renting out my little place for a decent return in Sicily (though unfortunately Spain has recently passed laws banning the practice). My place is rustic and affordable for creative guests, not your standard holiday rental. This is our plan with further properties as well.

@Michael Lemieux

The island is underrated - and properties can be incredibly cheap to buy. Property taxes are low as well.

Renovations are more a labor of love than a great investment, but with a trustworthy manager costs can be kept under control. It tends to be foreigners who are willing to take on the expense and hassle of renovations, particularly for properties away from the coastline.

Back to your question: Property ownership can get complicated due to titles owned by large families, or titles which weren't transferred properly (esp in the countryside). If you're interested in a particular property or region, contact estate agencies in the nearest town. Sicily is still developing and you'll want to do due diligence before buying anything.

I have been very happy with the agency I used to buy my property in Agrigento province, they have an English-Sicilian representative and have a reputation for honesty, fair pricing, and great follow-up. Their website is http://ciancianamyhouse.it and while they focus on the town where they're based [Cianciana], they have contacts throughout Agrigento province (mods feel free to delete, I can send in a PM instead) http://www.ciancianamyhouse.it/home/en

Hi, Sicily is a fantastic place to own a holiday home (of course everything depends on your PM).

It's relatively straightforward to buy, but renovations and maintenance can be excruciating on historic properties: labor costs and supplies can be quite high. We own one small property in Agrigento province and are buying another in Modica (Ragusa). We've been very happy so far.

We've bought a small place in Sicily to let to tourists, and are in the process of buying another in a different part of the island. Both managed by the local agencies from which we bought them. In 2015 we may go for another in Athens, if prices remain a good value there. In these areas there aren't many jobs and the local rental market isn't great, but these are popular tourist destinations, and foreign guests pay more than locals could, even accounting for the short peak tourist season..

Re. investing in Europe, it's relatively straightforward to buy RE as a foreigner. Residency is another matter. However, Greece has a program to offer residency to foreigners - and up to 9 family members - who buy a home for 250K Euro or more.

Singapore is pricey, and to get good financing you'd want to be living/working there. However it often tops lists for "best location" for expats. We are looking to relocate there from Beijing eventually.

I understand the 2% rule is something to shoot for but isn't always possible. It's easier on small or 'undesirable' or harder-to-manage properties.

And @Andrea P. managing a property in Italy (well, Sicily, we can debate whether that's the same country or not ;) remotely has been a great way for me to learn about investing in real estate too! It all comes down to trusting your PM.

I've been using Air BnB on my rental in Sicily for the past year, and have been really pleased. Have a management team in place (the agency from which I bought it). We are looking to do the same thing for a flat in Athens which we'll turn into another artist's studio.

Instead of the 2% rule, I have a 3% rule when looking for properties like this: it covers management and cleaning fees and utilities.

Some key elements to doing well on Air BnB:

* Beautiful, well-lit photos

* Excellent location convenient to transport

* Well written ad with thorough description of local attractions

What can make up for a lack in any of the above:

* A quirky design/unique lodging experience, at a low price

NB: Air BnB type services have been drawing the ire of hotel lobbyists to local governments, and many renters don't pay taxes on the $ earned. So for private landlords, laws may be passed in the future which may make things more difficult on these properties / this kind of earned income.