Greetings from a tropical Liguria!

Indeed the weather is strangely tropical this month: fine, hot mornings are followed by stormy afternoons almost every day. Such warm, humid conditions are ideal for growing mushrooms, and indeed, everyone is out hunting for them. I once read that a famous Italian chef always travelled to the UK in summer, because the conditions are ideal for growing porcini mushrooms and very few people go out collecting them. In Italy, there isn’t an inch of forest that isn’t being combed every day by porcini hunters during such a season.

What do we do with them? If they’re still young and firm, we chop them finely and dress with olive oil, salt, parsley and lemon as a delicious summer appetizer. If they’re larger, older and a little tougher, we slice them in strips and fry them in a light flour and water batter. If they’re too small and tough, we chop them up and throw them in a tomato sauce for pasta – it gives the sauce that little something extra. When we’re sick of them, we slice them up and dry them in the sun so we can use them in sauces and risottos later in the year.

Once I was on the bus going into town, and after I hopped on and sat down, I noticed that the bus driver was behaving rather strangely. He was driving painfully slowly, with the bus door left open, watching the curb (rather than the winding mountain road we were travelling along, complete with precipices). After a few minutes of this, he abruptly stopped the bus, leaving the engine running, jumped out with a plastic carrier bag, and disappeared in the undergrowth of the curb, leaving the rest of us dazed and perturbed. A few minutes later he reappeared with his plastic carrier bag now containing a few mushrooms of various types, jumped back into his seat and started the bus up again. He continued to drive along in this fashion, occasionally stopping when he found the right spot. A few hardy souls complained meekly at this behaviour, complaining that he was making them late with these antics (I piped up “and endangering our lives”), but the driver was unmoved by these lame attempts at protest. And it must be said, he really did have a talent for finding mushrooms. By the time we got into town, he had two heaving carrier bags full of the stuff.

It brings me to wonder once more what it is that makes living in Italy so appealing, when public services, government, bureaucracy and a general devil-may-care attitude to any public good conspire constantly against the interests of residents. What is it, I asked of the Norwegians, Swedes and Americans I was dining with the other night, all of whom had made enormous efforts, in terms of time and money, to make their annual pilgrimage to their Italian holiday home? Is it the weather? No, they’d be better off in Spain or Greece if they just want somewhere hot. The beautiful countryside? Well, the Americans (from Oregon) and Norwegians and Swedes all confirmed that they lived in lush countryside, replete with elks (the Norwegians), cougars (the Americans) and deer (the Swedes). (At least I believe they were elks from the description. That or dinosaurs – my Norwegian isn’t what it used to be.) How could our humble wild boar compete with that?

Well, the food is certainly an element where Italy won hands down as far as all present were concerned (the Americans told a disturbing tale of a cheese hamburger pizza they were served in Kansas City recently), but would you travel thousands of miles every year just for a fresh pesto? There has to be something more to it. The charm of the architecture - that was also a winning point. The winding, cobble-stoned streets, the half-ruined medieval churches tucked away in side alleys, alongside their more impressive baroque cousins which dominate so many squares and hilltops. They all said that what charmed them particularly was what Italians themselves would consider the worst part of Italy – Italians!

Despite the noise, chaos, disorganisation, corruption etc etc, the Norwegians, Swedes and Americans all said they love Italian people, the sense of community, the ease with which strangers get involved with each other, talk with each other, argue, laugh, even sing. The way an entire supermarket full of people will stop to admire a baby in a pram. In my own little town, people don’t say ‘good morning’ when they greet you. They say ‘Dove vai?’ (where are you going?), which at first I used to find quite unnerving, but now find quite normal. When I travel to a city, I have to stop myself from smiling and saying ‘Where are you going?’ to strangers as I walk along, or I probably won’t last long. So I reckon it’s a combination of food, architecture and people. It’s grabbing a handful of fresh basil from a vase on a terracotta-tiled terrace in the sun, to the sound of a thousand crickets and cicadas, and church bells chiming in the distance while your neighbour sings loudly and shamelessly as she slices up the porcini mushrooms her bus driver husband has just brought home and leaves them to dry in the sun. Something like that!

Before I go any further with my newsletter, I have to tell you about something that I think you'll find extremely interesting. Kim recently wrote a small guide about UK pensions...It's about what can be done about increasing the income one gets, eliminating or reducing the tax one pays and effectively ensuring that beneficiaries get ALL of the fund upon death rather than just a percentage (plus more...)

Right - I don't want to steal Kim's thunder - to get access to the special guide (at no cost), please send a blank email to the following address and you'll immediately get a return email with the report: kim32-443706@autocontactor.com. Anyone that has moved abroad or is thinking about moving should definitely read this report. (please check your junk mail if you don't receive an email from Kim within 5 minutes - sometimes they end up there...)

That being said...on to the rest of my newsletter – it’s quite a varied one this month. I discuss buying property in Italy, both for pleasure and for investment purposes. Then I provide you with a case study that shows how you can save money by using a currency company. There is a delightful property in Lombardy for you to look at and a great offer from my favourite booking website. Finally, an article on how you may be able to get money back from the tax man…and then it’s goodbye for another month.

Let’s get to it – enjoy!

Gianna

Gianna Williams
Italy Buying Guide
The Overseas Guides Company
Gianna@OverseasGuidesCompany.com

Property in Italy for pleasure AND investment…

Making money from your investment is not a bad idea and, in these times of crisis, many more people are considering renting their property out to make a little extra cash, especially as the property market is certainly under par compared with previous years. If you need money quickly, selling your property in Italy may not be as immediate a transaction as you could have hoped last year.

Not only will people rent a property for their vacation, they may well be renting out while house-hunting and getting a feel for the area before they commit to buying there. There are different ways of going about it. Some use agencies to find customers. These charge a small percentage of the rental fee and may do a basic vetting of the people who contact them. Other agencies may charge a little more and organise cleaning and welcoming services as well. Some property owners try to do it themselves, putting up a website, dealing with clients who contact them via email, and finding local people they trust to welcome clients and clean the house ready for the next rental.

Someone you trust to deal with problems is really crucial, even when you’re not renting out but simply away for long periods of time. For example, an American friend was renting out an apartment that he never used and in the time between one rental and another, the council had done repairs on the road outside and had closed all the gas metres to the houses, neglecting to reopen the metre for his apartment when they had finished. The renter arrived to find an apartment with no heating and no cooking facilities! It took a while before the meeter and greeter worked out what the problem was, rang the council, who told him that it was nothing to do with them, and finally rang the gas company who sent someone to find the metre and open it again.

A person on the ground who can speak English and understand the problem, as well as speak enough Italian to deal with local firms and companies and resolve the problem, is essential. Another friend decided to rent out his property recently and when someone occupied his house after six months, they found that the sewage system had blocked up and they were unable to use the bathroom for several days, until a neighbour rang up a local builder and had him rod the drains...

For rentals that are longer than a month, you need to draw up a rental contract which is then officially registered at the local tax office. An estate agent can help you write up such a ‘Contratto di Locazione’ for a small fee. The contract is then registered, for a small fee (proportionate to the amount of rent to be paid) which is paid by both leasor and leasee, at the local tax office. Such a contract will spell out how and when rent must be paid, who is in charge of paying bills and the date the rental contract will end. Ask for a month’s rent as deposit and a month’s rent up front.

If you spend most of your time in Italy, you can also try setting up a Bed & Breakfast. A property with separate sleeping quarters and bathroom for your guests, a nice terrace or garden and a simple continental breakfast is all you need to start off – put up a nice website with lots of information and photographs, and you’re away. Compared with other tourist nations, Italy has very few large-scale hotels, so Bed & Breakfasts are a popular alternative, and have no difficulty in getting booked up, even during a recession.

Get enough web coverage and good word-of-mouth recommendations, and your rental or B&B may end up bringing enough in that you may not see the need to sell in case you are in need of extra cash. That’s what Chris and Rina have found out: they put their apartment in Italy on the market in January (after being hit hard by the economy in the UK) and have found buyers, but are delaying the sale until after September when the renting season is out. It’s actually worth them delaying the sale so they can get in the extra money from the short weekend and weekly rents they have booked up for this year.

Even if you don’t intend to rent your property out, it might be an idea to keep an eye out for a property that could lend itself to renting if you suddenly need to make your holiday home pay.

Need any help with this, or with buying a property in Italy? I do have great people that other Italy Property Buying Guide readers have used. Do call me on 0207 898 0549 or fill in the form at:
http://www.ItalyBuyingGuide.com/property.htm
and I will contact you for a chat.

How a Guide Reader saved £11,504 by being Smart

Paul and his wife Deborah had decided to buy a condominium in the USA. Their son had married an American girl and they were determined to be part of their lives and to get to know their new daughter-in-law.

Paul needed to send the equivalent of £135,000 to Florida at the end of September. Fortunately he had heeded the advice given on the Smart Currency website and phoned in early - June in fact - to discuss his needs. At that time, it was recommended that he look at reserving money (for purchase in the future) at that day’s exchange rate – Paul takes up the story:

“Who was to know that we were just about to fall over the precipice of the biggest recession in living memory? I was told by the Smart trader that, given how unpopular sterling was, the pound / dollar could go down the further along the year we went - he must have been psychic! His thoughts were that it may be best to arrange a ‘forward contract’ – to buy currency at today’s date for transfer in the future - as soon as possible, thus locking in the rate at the time to use at a given date in September. Suffice to say it’s the best piece of financial planning I have ever done,” says Paul gratefully; “not to mention that Smart made the whole transaction so simple, a couple of short pieces of correspondence and it was all set to go.”

Paul was able to reserve the US$ 264,600 that he needed to send to the USA at a rate of 1.96 GBP/USD on a forward contract from 02/07/08 to 26/09/08. In Sterling, the cost to Paul (when the contract matured in September) was fixed at £135,000 less the deposit paid. (US$ 264,600 ÷ 1.96 = £135,000).

Had Paul waited until September to buy the currency needed, which was his original intention, the rate would have been 1.84. This would have meant a cost of £143,804 (US$264,600 ÷ 1.84 = £143,804), making a loss for Paul of £8,804 over buying a forward contract.

Furthermore, this was not the only saving that Paul made. Had he traded with his high street bank rather than getting exceptionally good rates from Smart, it would have been approximately £2,700 more expensive for the USD purchased (or he would have received $5,292 less).

All in all Paul saved £11,504 by being Smart with his international payment for his overseas property!

Incidentally, with current rates at the time of writing at 1.46, if the requirement had been for now, and booking forward when Paul did, the saving would have been an outrageous £46,232 (US$264,600 ÷1.46 = £ 181,232 - £135,000 = £46,132).

These figures really bring to light the importance of using not only a currency company, but the right currency company – one where you get a really proactive service.

As soon as you know that you’re going to send money overseas, contact Smart Currency Exchange. Just give them a call on 0209 898 0541 – you are under no obligation at all but you may find that their friendly input could help you enormously.

To read the latest market information on Sterling and the Euro go to: http://www.ItalyBuyingGuide.com/Currency230709.htm

Why overseas property buyers lose money...
...and how you can avoid it!

This 10-page educational report outlines:

• Case Study: When Property Buyer, Mr Reed, Purchased an Overseas Property, he Made Three Mistakes that Cost Him £10,256...learn how you can avoid them...
  
• How the Banks make HUGE profits from their long-standing unsuspecting customers
  
• Ways to safeguard yourself against adverse fluctuations in exchange rates (or in other words, helping you to keep your money in your pocket)
  
• The entire process of moving money from the UK to any overseas location, so that you're armed with all the knowledge you need to make intelligent decisions about your money
  
• How you can ultimately save £100’s and £1000’s so that you have ample money to buy furniture and white goods…
  
• More case studies of people that lost money due to foreign currency strengthening against the pound, so that you learn from other peoples mistakes rather than your own!
  

And just a couple remarks about the report from our readers...

" We have found your free report to be extremely helpful... Wendy Watson"

"I have read and absorbed the information in the stories outlining the mistakes which the uninitiated can make when transferring currency. It is very illuminating and essential that any one,like myself, who is in the process of buying an overseas property should be aware of. I would go so far as to say that every agent selling overseas properties should be compelled to advise their prospective purchasers that it is paramount that they use a currency expert such as yourselves. Regards, Eric Thomas"

To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm

To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

Property Feature Antica Dimora Apartments Bianzano, Lombardy

Here is a simply delightful newly built apartment in a complex in Bianzano on Lake Endine.
Priced from € 119,000 this is really good value. Bianzano is a charming historic hamlet, famous for its medieval castle, with a beautiful view of Lake Endine.

The apartment comprises a spacious lounge with fireplace and cooking area, a double bedroom, a bathroom and a storage room. Additionally, the apartment boasts a private garden of about 40 sq metres, ideal for al fresco dining on those lovely, sunny Italian days.

The apartment is sold partially furnished, with a fully fitted kitchen, a dining table, 4 chairs, a sofa bed and a fire place.

Finishes are top class and there is independent heating in each apartment.

Sound like your kind of place? Please phone me on 0207 898 0549 and let’s have a chat about it. Or you can go to:
http://www.ItalyBuyingGuide.com/property.htm

and fill in the short form. I will then contact you to discuss this – or indeed any other – property.

Travelling to Italy

Travelling on the tube the other day I saw a really great offer from ebookers – have you seen it? I thought that I just had to share it with you, especially as summer is just the time when prices seem to rocket!

They are saying that this summer every holiday is on sale until 31st July – and this even includes August Bank holiday breaks!

You can save on EVERY destination - now there is no excuse not to jump on the plane and take that a last minute holiday you have been promising yourself, or that trip to look at property…! On some options you pay for only half of your stay – and how about spoiling yourself with luxury accommodation at bargain prices?

And there are some great prices: over the August bank holiday you can go to Athens for 3 nights on a scheduled flight for £296; to Dublin £162 – that’s a real bargain! Other holidays included Istanbul for £313, Lisbon for £271…the list is endless. Spoil yourself and have a look at:

Ebookers

Incidentally, if you are just booking flights it does sometimes pay to start your journey on Tuesday, Wednesday or Thursday, something I discovered by playing on this site – it can make quite a difference to the price.

Can it be true – money back from the tax man?

I picked up an article in the Financial Mail recently that I thought may be of interest to you. It drew attention to the fact that anyone who has paid capital gains tax on the sale of a European property, or has failed to cover their costs when letting out a property, could now receive a rebate on tax paid in the last five years.

Needless to say, the cynic in me saw this as an opportunity for the government to find out exactly who is receiving taxable rental…but hey, this may be a genuine window of opportunity for some investors!

Evidently the tax break is an attempt by the government to bring the rules for European holiday homes into line with those for second homes in the UK. The fact that these benefits were allowed on second homes in the UK and not in the rest of Europe has been seen as a contravention of European law. Of course, the upshot is that this benefit is to be removed next year from second homes in the UK too – however, until then, owners of properties abroad are allowed to claim retrospectively.

SO: you may be liable for a tax rebate:

£ if the income you received in rental did not cover related costs, such as mortgage, repairs, insurance and many other bills related to the property

£ if you have paid capital gains tax on the sale of a European property

Should you fall into either of these categories you are advised to act fairly swiftly as this only applies to the current tax year. Good luck! Do call 02078980549 if you’d like to chat about your future plans at all – I’d love to hear from you.

And remember too that as you move your money across to pay bills, holiday in Italy, have your pension forwarded to you, you will need to contact Smart Currency and discuss this. They can help you here too. Phone 0870 285 0364/ 0207 898 0541 or go to:
http://www.smartCurrencyExchange.com/smartsquotation.htm

Buy the Guide

Do you have your copy of the Italy Property Buying Guide yet? It makes great holiday reading and, if you are thinking of buying property in Italy, it is an absolute MUST!

As you may have gathered, I know the Italian property market inside out – both the good and the bad - having bought a wonderful home here myself. The Italy Property Buying Guide is an utterly honest and straightforward look at the buying process and will allow you peace of mind in knowing that you have covered every aspect of the buying process. This is what Sue, wrote to me:

The best advice out there. I cannot recommend your service enough. I have yet to complete my purchase and have spent a few months researching my options and your guide. Even though I speak and was born in Italy and I have lived in the UK for many years it has been invaluable, my property bible. It gives a very accurate and up to date picture of what it is like and the advice is spot on. A must for anyone looking to purchase property in Italy today and everyday.

Best regards,

Sue

To get you copy, please go to:

http://www.ItalyBuyingGuide.com/guide.htm

Bye for now...

That’s all for this lovely summer month. I hope you are enjoying yourself and having fun. My best wishes go out to you and please let me know if I can help you with anything Italy related – just call on 0207 898 0549 and we can chat.

Kind regards,

Gianna

Gianna Williams
Italy Buying Guide
The Overseas Guides Company
Gianna@OverseasGuidesCompany.com