Why buying “off-plan” in Lake Garda is a smart investment

April 4th 2008

Homes in Italy highlight why buying off plan in Garda makes sense and how to maximise on the investment....

Buying off-plan in Garda

With a highly active tourist market, investment property in Italy is an attractive prospect to the buyer. Foreign tourists are not the only market in Italy. Lake Garda in particular is a firm favourite with Italians wanting a lakeside home to use both on weekends and during the summer months, meaning there will always be a stable investment market with good capital appreciation and a reliable rental market. Strict building regulations have ensured its longevity, with a maximum of two storey new builds, which are limited, and local materials such as locally quarried marble, stone and brick used in construction.

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.

What is currently on offer?

Homes in Italy are pleased to announce 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.

With a 25% forcasted price increase upon completion this is an excellent opportunity for early investment. Prices starting from just 119,000 euros for a studio flat and 129,000 euros for a one bedroom apartment:

What is the property cost plan?

How do I Maximise profit from Off-Plan investment in Italy?

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.

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.

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.

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.

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 studio apartment within a residence with swimming pool can expect to generate between £1,500 and £2,000 per month in rental during peak holiday period Jun-September on Lake Garda. A two bed apartment can achieve as much as £1,000 per week in high season.

Looking for something more exclusive?

Homes in Italy is pleased to announce the release of the new Porto Fornaci luxury development within walking distance of the lake and of the lively resort of Peschiera:

http://www.homesinitaly.co.uk/smx/search/property/2337/

http://www.homesinitaly.co.uk/smx/search/property/2336/