All Forum Posts by: Andrea P.

I am italian living in Rome and working in Abruzzi.

You have a lot of Ghost ancient Towns.

Usually the city requires you to sign a committment of rebuild before selling to 1€.

Typically Is a small Town strategy for keeping alive.

I chose Rosenblum Reality more than 10 years ago After interviewing others PMs.

At the time It was the bigger PM in the area. They used to manager 700 properties. I believe It Is now bigger.

I likes the idea of a team of specialists.

They are not perfect. They do not accept houses below a certain rent. 

They tend to prioritize more expensive houses rather than mine.

I believe the experience matter more than some details of the contact.

The ability of tenant selection Is a Key.

I am oversea investor. Renting from years a property in the US.

I May live there (in the US) for at least 3 years for resetting the capital gain.

Right?

I fully agree with @Amber Roy.

In the USA you have a kind of construction standardization and clear regulations who make the property rehab and management very easy compared to Italy (and the rest of the world).

Recently the Italian government approved some law impacting the market, making the already difficult rehab a nightmare.

Starting with the spreading of the smart working, a lot of Italian young professionals working abroad are coming back to Italy, they need a house.

On top of that, the Italian government approved "rientro dei cervelli" (brains return) act which brutally cuts the income taxes for the Italians who worked abroad for at least 2 years. This income tax incentives last for 5 years after you resettle to Italy and it is extended to 10 years in case you buy a house.

This trend is going to push rural towns real estate market up.

The Italian government approved even 110% bonus which pushed the rehab costs super highs resulting in shortage of contractors and construction materials as well.

I have a SFH with PM in place. I am supposed to get the 20% deduction on it. I draft F1040 Schedule E and I am going to fill Form 8995.
Not sure the meaning of line 3 and 4:
3.Qualified business net (loss) carryforward from the prior year

4.Total qualified business income. Combine lines 2 and 3. If zero or less, enter -0-

Managing a single apartment rented to several people is a challenge. As far as I know is like part-time job due to:
- High turnover
- Quarrels among tenants
- Non paying tenant
- Tenant inviting other person
Even more in Europe you have extremely tenant friendly law and I never heard about Property manager as we intend him in the US.
Despite I was born in Italy and I live in Rome, I felt more secure to rent a property in the US rather than Rome due to:
- Business friendly environment
- Landlord friendly law
- Property protection law
- US screening (i.e. credit score)

Italy could have big potential, but it is not business friendly like US.

Few years ago, I heard about 1€ program in Lecce dei Marsi (a town near the place where I work).

Apparently now the program is in stuck due to issue with national tax authority: https://initalia.virgilio.it/i-comuni-italiani-che-vendono-le-case-a-1-euro-4043 

This kind of program are usually sponsored by town with financial trouble, out of the touristic paths. The town administration could be unable to deal with international investors.

I remember about  the selling of whole village for 500k€ including the church with frescoes: https://www.primadanoi.it/news/cronaca/541602/Abruzzo--Borgo-disabitato-in-vendita.html

What is the purpose of your buy?

Vacation rental?

I remember another town: Loreto Aprutino (PE). It was very well maintained because it was bought and restored by english investors. After the L'Aquila earthquake, they got frightened and they sold the houses, despite no damages in the village.

Ghost towns usually provide this kind of options. It is not a Nation wide program.

It is about house to re-build completely.

You have to keep the original shape, volumes and materials.

Finally the flipping cost may be like a new house.

Italian Real Estate market is still going down, Especially for vacancy houses.

Babyboomers bought second houses in the '70. At the time they used to have 1 month vacation and strong inflation. Now they cannot afford taxes and manitenance anymore.

The newer generation has short vacation and money. So they are not interested in second houses.

A lot of seller and few buyer pushed the market down.

The last government changed the foreclosure process in order to speed up the selling. So a lot of deal : www.astegiudiziarie.com

It is an historical good time for buying.

The US Italy double taxation treaty stated that the income taxes from Real Estate have to be payed to country where the House is.