How can property be cheaper if bought off-plan – How does it work?
In order to limit financial risk and debts, the developers of any project will wish to sell units off-plan. They understand that if buyers cannot see a physical property at the beginning, they will demand a lower price, while relying purely on the developer’s reputation, the property location, artistic impressions and computer aided designs (CAD) on which to base their decision to purchase.
Take for example our Selected New build / Off-plan / Investment Property Toscolano Maderno, Lake Garda This exciting new development (due to start construction Spring 08), of 34 stylish studio, 1 & 2 bed apartments is nestled into the hillside within a picturesque olive grove, and perfectly placed in a medieval borgo belonging to Toscolano Maderno, with breathtaking views of Lake Garda.
Prices starting from just 119,000 euros for a studio flat and 129,000 euros for a one bedroom apartment.
With a choice of studios and 1 -2 bedroom apartments this development represents an attractive and safe investment.
Communal swimming pool, underground parking and private gardens or terrace.
Maximizing Profit From Off-Plan Investment in Italy
Purchase early
Prices never remain low for long and, as construction progresses, prices begin to rise steadily. In Italy, as in any other market, it is important to buy as soon as possible during the early stages of development when prices remain very competitive but are already beginning to rise. Early investors will invariably see the greatest returns.
Purchase the best units
Early purchase allows investors to choose the most sought after units on any given development. The best units always offer higher capital appreciation in the smallest time frame and can often demand the greatest rental incomes. Lake or sea view are always firm favourites.
Price increases as development matures
As the development begins to be constructed, the value of the units begins to rise. A completed show home is normally available for viewing at this stage, while buyers are taking less of a risk as they now do not need to rely 100% on plans.
Price appreciates as more units sell
As more units are sold, the price of the remaining units rises. Units sell faster when buyers are able to physically see them. To the early investor this means that, should you decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase and paid the deposit. It is also very common practise to re-sale the property upon completion of building works without having first transferred the title deeds from the construction company, which allows the investor to save on purchase taxes and notary fees, but earn on the appreciation gained during the construction period.
Excellent Rental Prospects
For those who are interested in the buy-to-let market, the high tourist numbers coming to Italy are encouraging. Investing in the north and around the lakes can double your rental prospects as you can benefit not only from the summer season but also from winter ski holidays. A one bedroom apartment within a residence with swimming pool can easily expect to realise €.1000,00 per month in rental during peak holiday period Jun-September on Lake Garda.
