Hello, everyone, from a hot and sunny Liguria.

June is a wonderful time to be in Italy, especially in the countryside. The days are spent picking cherries, apricots and nespole (loquats), accompanied by the constant background music of crickets and cicadas stridulating away. Evenings spent out of doors are lit by stars in the heavens and fireflies in the air (and citronella candles to keep the mosquitoes away) and resound to hypnotically vibrating frog choruses, which call to each other from wells and water storage tanks throughout the valley.

The festival and concert season is well under way, and our own small town is now gearing up for a series of holidays. The 14th of June was Corpus Domini, and featured a special procession whereby the church bells of four of the town’s churches signal to each other as the procession passes. As the procession arrives at St Marta, the bell of St Marta starts to chime and does not stop until the procession is out of sight. At that point, the bell ringers of St Caterina, who have been waiting for this signal, start hammering on their bell (they beat the church bell with small hammers rather than ring it with a rope) until the procession has come past, whereby they cease, and St Andrea starts up. Last of all is the church of the Visitation. The procession itself has, at its head, young children scattering rose petals from wicker baskets, followed by the town band in uniform, followed by the town priest, who is sheltered from the sun by an impressively elaborate red and gold canopy, held up at the four corners by his chosen acolytes.

But Corpus Domini is just the start. Then there’s San Giovanni on the 24th of June, when the entire village decamps to a nearby hill and spends the day picnicking there. Groups of friends and family go early so as to pick the best spot, under a shady chestnut with a good view. Everyone spends the entire day there eating, drinking and singing, while the children work off lunch by playing football or flying kites in the fields, women traditionally go off in groups to pick wild lavender, now in full bloom, a small mass is held (just to prove that the festival does have some kind of justification) and everyone staggers home before it gets too dark to walk back down the hill again.

Then, five days later, there’s St Peter and Paul, the town’s patron saints, which is when all the residents who turn 50 this year will be given the honour of carrying the wooden statue of the saints around the town (presumably the town’s ancestors decided that 50 year olds would still be able-bodied enough to carry the statue, which I am told is not particularly light – I will confirm whether this is true when it is my turn, far in the future...) and the evening is enlivened with a concert by the town’s brass band, held in the main square, under the stars, where we all strain to hear the music over the kids screaming around in the back, and their mothers are told off for not keeping their kids quiet. The front row is kept free for local dignitaries, such as the priest, the police chief, our newly elected mayor and her newly installed counsellors. I won’t even go into what happens in July…

Despite living only 20 minutes away from the Mediterranean sea, I have yet to set foot on a beach. Every spare moment is spent lugging furniture and personal effects from the house I’m selling in the country to our now (almost completely) renovated house in town, far from any parking or road. Italy’s three-wheeled “Ape” motorised vans are very handy in these cases, for driving up narrow cobbled streets that cannot be negotiated with ordinary cars. However, we’re still getting very fit as the Ape doesn’t quite make it all the way, and there are still several flights of steps, both in the lane and in the house, that have to be faced. The only building work left to do is the terrace, and I am hoping the builders will complete that before my Norwegian neighbours arrive in July, or they will be seriously perturbed by the cement dust, noise and general mayhem that my builders are so good at creating out of nothing. It sometimes seems that their main job is to create dust and mess, and that occasionally, as by mere fluke, they just happen to produce a tiled floor or plumbed-in bathroom as a by-product.

This month’s feature revisits our old friends the Humphreys – last seen in the September newsletter – and the ever thorny subject of geometras, those especially Italian creations who are a kind of junior architect and who end up being responsible for drawing up extension and renovation plans and organising all the bureaucracy involved in securing planning permission. May you never have need of them! And if you meet a good one, hang on to him (or her) tightly…

To follow, Charles Purdy will share his financial expertise with you, I have a lovely restoration property in Alba for you to look at plus a travel insurance recommendation. I finish off with a Top Tip, a topical one actually that relates to a grant you may be able to apply for when restoring a rural property…so read on!

This comes with warmest (summer) regards,

Gianna

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

Only in Italy: Of Geometras and the Piano Casa regulations…

I remember being stunned about a year ago when I was flicking through Italian television’s desperately poor selection of programmes, and happened to see a short clip from the Miss Italia competition. It was the part in the contest when they asked the “miss”es what they would like to be when they grow up. I can remember that not so long ago, the typical answers would have been ‘air hostess’, ‘singer’, ‘nurse’ or perhaps the odd career girl aiming high at ‘doctor’ or ‘journalist’. I was quite stunned to hear the majority of them answer ‘notary’ or ‘geometra’ – were these really the highest aspirations these girls could have, after 50 years of women’s

However, I am conscious that this was a typically non-Italian reaction to have, because in actual fact, notaries and geometras are treated with an uncanny kind of mass reverence. A notary comes in handy for an amazing variety of transactions: from buying and selling property, to writing up wills, to arranging powers-of-attorney and (until recently) even when selling a car. Live in Italy for long enough and you will find it hard to imagine a country where notaries and geometras simply don’t exist.

A geometra is a kind of junior architect, and is generally the person you will need to find when renovating or extending a property. A privately-hired geometra’s relationship with the council’s own geometra, who approves renovation plans submitted as well as any other structural work or renovation work, is actually quite important. A council geometra in charge of the planning office is a prince in his realm, and one soon learns to treat him or her with far more respect than one need muster for the mayor or the local doctor.

And all this despite the fact that geometras are quite a mixed bunch. Some are better at dealing with bureaucracy and land registry paperwork than at drawing up renovation plans. Others are the opposite – great at drawing up plans but less keen on the bureaucracy. Others are not so great at doing either, but are good at keeping on top of builders and making sure that renovation work sticks to the original budget and schedule. Choosing the right geometra is actually a fundamental step in ensuring that renovation work is successfully completed in an acceptable amount of time, and to an acceptable standard.

Some of you may recall, way back in the mists of last September’s newsletter, the story of Paul and Gill Humphrey, who called out a geometra to have a look at what could be done with their newly-bought stone rustico. Some of you may have wondered whatever happened to them and why they haven’t been mentioned since. The answer is that the Humphreys have been waiting since September for their geometra to present plans or drawings of what kind of renovation they can do, and only on June 12th did they see anything from him. Almost nine months have gone by and only now have they received some drawings. You can, of course, imagine how they feel. It gets worse however, because these long-awaited drawings do not at all resemble any of the wishes they had expressed when they first met their geometra, and so they are now ready to fire him, having wasted 9 months waiting for him to come up with something. (They reckon that the geometra had completely forgotten what they had discussed in September and when they threatened to fire him last week, he quickly cobbled something together from the measurements he had taken, not remembering anything of what had been said at the time.)

A lot of time has to be built into your plans when you buy a rustico (not to mention money), time spent waiting for council planning offices to approve your renovation ideas, let alone the time necessary if your plans need to be sent on to the regional government for approval. A year can easily go buy. So it is even more frustrating to end up needlessly losing time because of an incompetent geometra.

The new Piano Casa regulations aren’t helping, in that many regional governments have yet to pronounce their adherence to this new law (which would allow buildings such as rusticos to be extended by 20% of their existing volume) and so some geometras may be waiting to see whether this law is approved in their area (as the Humphrey’s geometra has claimed he was also doing). (Have a look at the table below for the latest news on this law’s application in each region).

Given this background, you can imagine the consternation of another English couple, who are selling their rustico. They have found a British buyer, but he insists that he will only go ahead with the purchase once he has had a geometra draw up renovation and extension plans and has received planning permission for the rustico’s renovation. Only then will he go ahead and buy it. This means that this couple will probably have to wait a year (and hopefully not longer) before finally selling. And that would also mean waiting a year in the hope that his plans for their rustico will actually be approved – if the geometra doesn’t strictly follow guidelines for ceiling heights, or sloping roofs, or the size of windows, just one error will mean their plans will be thrown out and they’ll have to start again. Would you accept a buyer’s offer with these conditions? I don’t think I would. Especially as the market in rusticos has not suffered in the same way as other more expensive properties during this world economic crisis, and therefore no one is that desperate to sell a rustico and so willing to agree to such conditions.

Piano Casa regulations update:
Here is a summary of the current situation as regards the Piano Casa building regulations in each region.

Tuscany
You can only extend detached homes by 20% if the energy efficiency of the building will be greater than the current legal requirement. Such buildings can be extended by up to 35% if they are demolished and reconstructed.

Veneto
You can now extend by 20% of the existing volume of the house, you can
extend by 30% if you demolish and rebuild, and you can extend by 40% if you use “sustainable construction techniques”.

Sicily
You can now extend by 25% of the existing volume, plus another 5% if you incorporate clean energy systems (solar power for example) and you can extend by 35% if you are demolishing and reconstructing the property.

Umbria
Umbria is allowing extensions of 20% for buildings with up to 350 square metres of living space, but only if highly energy efficient systems are incorporated.

Piedmont
The law has been applied but with strict limitations on historic buildings. Extensions will be allowed of up to 20% (or 35% if demolishing and rebuilding) if the renovation reduces energy consumption by 40%.

Emilia Romagna
The law has been applied with greater emphasis on maximum energy efficiency. If a building is demolished, it must be reconstructed with the highest possible levels of energy efficiency. A final version of the regulations should be proposed by the end of June.

Friuli Venezia Giulia
Buildings can be freely extended by up to 10% of existing volume, and – with an approved DIA prepared by a geometra – up to 20%.

Lombardy
Extensions of up to 20% are allowed on detached homes and up to 30% for very old residential buildings in a bad state of repair.

Le Marche
Le Marche should be finalising its Piano Casa regulations in the next few weeks. It is anticipated that buildings will be allowed to be extended by 35% if their usage is not changed (i.e. that dwellings remain dwellings, commercial buildings remain commercial buildings). Emphasis will be placed on energy efficiency, renewable energy resources and earthquake safety regulations.

Campania
Campania will allow 20% extensions on detached houses and 35% for demolished buildings which are rebuilt with greater safety standards.

Puglia
Priority will be given to renovations which feature, eco-friendly techniques and systems, and no extensions will be allowed in protected areas of environmental importance.

Sardinia
Buildings in parks, historic town centres, archeologically important areas or geologically sensitive areas cannot be extended.

Abruzzo, Basilicata, Calabria, Lazio, Liguria, Molise and Valle D’Aosta have yet to define how the Piano Casa will be incorporated. It is anticipated that by the end of July, most regions will have published their new criteria.

This may all sound a little confusing but please just pick up the phone and have a chat about this if you would like to at 0207 898 0549. I can also put you in touch with a property expert if you would like me to – just fill in the very short form at:
http://www.ItalyBuyingGuide.com/property.htm

and we can talk about this.

Stop the Value of Your Pension from Decreasing!

by Smart Currency’s Charles Purdy.

Many expats abroad unknowingly lose money when receiving their monthly pension payment. Often a pension is paid in sterling at a UK (or off-shore) bank, exchanged into the local currency required, and then sent to the pension holder’s overseas bank account. Alternatively, pensions are paid into a Sterling account in their overseas bank account, and then exchanged into local currency.

By using the standard banking system, money saving options are often overlooked, unnecessary charges can be made and poor currency conversion rates applied. Charles Purdy states “On average, a pension holder loses around £30-£50 unnecessarily on every transfer – this amounts to actually giving away £600 a year – and in some cases, much more!” So what is the solution? It’s simple – use an international payment specialist, not a bank.

The money saving option – fix the currency exchange rate
Charles comments, “Take Mr Benson, who retired overseas at the end of 2007. He needed to receive his Sterling pension in Euros. In January 2008, he explained that his monthly pension amounted to £1,134 and wanted to know which options were available. After a brief conversation, he decided to set up a regular payment with a fixed exchange rate of 1.33 for the next 24 months until the end of 2009. In January, he received €1,508.22 in his overseas bank account and will continue to do so every month until December 2009”.

If Mr Benson had decided against fixing a currency exchange rate, his monthly amount would have decreased along with the weakening sterling rate - and by December 2008, his monthly transfer would have fallen to €1,190.70 - a 21% drop in value!

Avoid charges
Charles continues, “Mr Benson, like many other expats, assumed he was getting the best possible deal from his bank - but sadly, banks often fail to offer or even mention the option of fixing a currency exchange rate for use in the future. They tend to offer customers lower exchange rates and usually charge commission and transfer fees, all of which can be reduced, if not eliminated altogether. There is absolutely no point paying fees you don’t have to, particularly in the current economic climate where every penny counts! And no matter where you are in the world, with the loss in value of sterling over the last 18 months, this scenario can apply”.

Get good exchange rates
International payment specialists offer exchange rates that are guaranteed to beat the rates provided by the bank. Banks often set their buying and selling rates for currency first thing in the morning – when you visit a branch, you’ll see them hanging on the wall. Specialists, however, don’t set the rates in advance but call into the market floor to obtain the best rate possible at the time of the transaction.

Charles states, “For many expats, watching the value of their Sterling pension depreciate over the last year must have been soul-destroying. When €1,508 is expected in the bank and only €1,190 arrives, the recipient clearly suffers great anxiety”. Charles Purdy’s final comment is “Always remember, a short phone call could save you up to £600 a year!”

Charles Purdy is a Director at Smart Currency Exchange Limited – the only international payment specialists in the UK who work specifically to help people save money on regular transactions such as mortgage or pension payments. To move money overseas, including funds for property purchases and also the repatriation of funds back to the UK go to www.SmartCurrencyExchange.com for further information.

To read the latest market information on Serling and the Euro go to: http://www.ItalyBuyingGuide.com/Currency240609.htm

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

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.

Borgo Romantico, Alba

Price: €224,000

Alba is considered the capital of the hilly area of Langhe, and is famous for the white truffle, its peaches and for wine production. Plus its nuts and chocolate…When I tell you that the confectionary group Ferrero is based in Alba – well, that’s enough to make me want to move there!

Only 20 minutes from the charming town of Alba and surrounded by almost 7 acres of land, this property would make an ideal restoration project. It is in a very private and sunny location, with seven stone buildings just begging to be restored. The total lay-out, including the number of bedrooms and bathrooms and so forth can be planned and designed according to your requirements.

The property is near a little stream and has a panoramic view of the valley and the nearby villages, with many of them just 5 minutes away. It would also be possible to purchase more and should you require it.

It would be ideal either as a B&B or for a large family or group of friends. It may be possible to use part of one of the buildings, once restored, to live in while you carry out the balance of the restoration work. The buildings cover an area of 914 sq m. It does have a spring and well for water, but it will need to have electricity, sewage, gas and water connected.

Interested? If you would like to have a chat about this call on 0207 898 0549, or if you would prefer to fill in the short form and send it to me, go to:
http://www.ItalyBuyingGuide.com/property.htm

and I will phone to discuss this with you. Or indeed any other property you may be interested in – I have reputable property people standing by to help you as they have helped other Italy Property Buying Guide readers.

Why should I buy property in Italy?

No matter what your reasons are for buying a home – to retire to, for those long, lazy holidays, for a rental property – I always advise buying something that you will be able to sell easily at a later date. You do not want to be saddled with a property when it comes time to move on - we all know those times when life throws you a curve ball, when the unexpected happens and your plans change. Bearing this in mind, there are many really good reasons still to be buying property in Italy.

Investors seeking to enter the tourist property market in Italy were given boost in November last year when the Daily Telegraph Travel Awards 2008 listed it as the reader's most popular European destination.

Here are just a few reasons why Italy is a good property investment market:

• The Italian economy looks well placed to weather the recession it has been claimed, despite the alarming credit crunch in other European countries. According to Reuters, the nation's economy as a whole has been largely unaffected by the global economic downturn and forecasters are ruling out a property bust. One of the reasons for this is that in Italy people have traditionally been inclined to pay in full for houses at the time of purchase rather than take out a mortgage. In addition, the European Commission has predicted Italy's economy will contract just two per cent this year while the likes of the UK, Ireland and Germany are expecting far higher losses.
  
• British people visiting Italy can still enjoy an affordable holiday, despite the current exchange rate. This is according to the Telegraph, which explains that although the falling value of the pound has made holidaying in the euro zone more expensive, Italy still has much to offer budget-conscious visitors.
  
  "Some things remain good value, including train travel, wines direct from vintners, organic groceries and village trattorie off the main tourist trail," the newspaper states. Italy was named best European country by Telegraph readers in the publication's annual travel awards, indicating that the Italy's appeal has not been diminished by the economic downturn.
  
  Getting to Italy is now more straightforward than ever before, with direct flights to 26 destinations available from UK airports and the new EasyJet route between Liverpool and Naples.
  
• Golf Tourism is becoming big news world-wide and Italy is joining this very popular tourism option. The "Golf & More" campaign has been aimed at promoting the sport to visitors in the regions of Liguria, Bolzano, Tuscany, Sardinia and Sicily reports Golf News North East. The development of golf in Italy would open up a new market for property investors looking to rent out holiday properties.
  
• It is predicted that Southern Italy is set to see increased interest in the property market over the coming months despite the credit crunch. A property firm specialising in the region stated that despite the economic downturn, there is no shortage of buyers looking to buy property. There are still many people buying in Italy and the weather, the lovely coastline and a strong rental potential makes the region attractive to buyers. Beach front properties can still be bought at less than half the average price of a home in the UK.
  
• Areas like Tuscany have an enormous amount of interest for visitors, and rental properties are very popular in this region. It has been estimated that a two week visit would not be enough to see all the treasures of just one of its most famous cities, Florence. Adam Buckley, the Independent's travel writer, said Florence alone had more to see than a normal trip could allow for.
  
  He commented: "You could spend a fortnight here and still not see every one of the masterpieces to be found in Florence's museums and churches." In addition to this, he suggested, the region offers other outstanding attractions in the cities of Siena and Pisa, at beach resorts such as Elba plus there is delightful walking to be had in Southern Alps.

Please don’t hesitate to contact me if I can be of any assistance in helping you find the property of your dreams. Just phone 0207 898 0549 or fill in the form at:
http://www.ItalyBuyingGuide.com/property.htm

and I will call you.

Travel Insurance

Until recently, I had a fancy sort of bank account that I opened years ago and that covered my travel insurance and a few other bits and bobs. However - times are hard, let’s face it, and I got to wondering if I really needed to be paying the extra bucks every month. Frankly, at the price they were charging me monthly, it would be cheaper just to take out travel insurance for each trip – so back I went to my old friend American Express for travel insurance.

This website has insurance for everything - home, motor, identity and, of course, travel insurance. In the past I found that they were slightly more expensive than some other companies, but – you know what? I would rather go with a reputable company that has been around ages – that way I feel safe.

Many years ago I found myself abroad: my taxi dropped me at my hotel and, as I went to pay I realised I has left my wallet at the airport when cashing money. Yes, you’ve guessed it: in contained my money, my traveller’s cheques, passport, air ticket…the lot.

The taxi turned around and raced back to the airport. Thanks heavens for an honest and adorable chap at the currency desk – as he saw me frantically charging across the airport towards him he waved my wallet in the air…!

But not before I had time to contemplate exactly what I was going to do. I was on a rebated air ticket, had no money, no credit card…no proof of identity. But, packed safely away in my suitcase, I did have a copy of my American Express insurance policy and an emergency number to call. Only someone who has experienced this kind of panic will understand what an enormous sense of relief I felt!

American Express’ boast is that, wherever you are in the world, 24 hours a day, 365 days a year, you're in safe hands. With over 150 years of travel experience, they know how to help if the worst happens. Whether it's lost luggage at the airport or a skiing accident in a remote village - or a lost wallet abroad - they will help you get things back on track.

There are all sorts of variations in their policies – things like Annual Prestige Travel Insurance for instance, with additional benefits that cover for business and leisure trips and family members, including that children up to the age of 21 can travel independently. This allows your family to be covered, when either travelling with you or individually – a really great idea for a family these days I reckon. The other thing I like is that it is available for travellers up to 69 years of age for worldwide cover and up to 79 years for European cover.

There are more options than you can shake a stick at: have a look and see what you think. Go to:
Travel Insurance

Top Tip

There are many places in Italy where property is less expensive than say Rome or Tuscany. Interestingly enough, rural areas are becoming increasingly popular with those looking to enjoy the culture and the natural beauty of traditional Italy in a more relaxed atmosphere, whilst enjoying the beautiful beaches along the coastline.

The interesting thing is that there are government grants available for those undertaking renovation projects in rural areas, making this a great opportunity for property investors. You would need to do your homework and your sums first but you may find that you qualify for this and it may prove to be an enormous help when it comes to paying the bills.

Italy Property Buying & Investment Guide

If you haven't already purchased our excellent FULL Guide...why not get a copy today?

The completely educational guide covers the start to finish process of buying a property in Italy. Every step is outlined starting with the initial idea to buy in Italy all the way through to areas, how to buy land, investment options and many top tips. This guide is for anyone thinking about or currently in the process of buying property or land in Italy.

In the course of three years our Guide has been graded a 9 out of 10 and we’ve received huge amounts of positive feedback.

There’s a money-back guaran.tee if you don’t like the Guide so there’s no risk in buying one – please get yourself a copy to ensure you know what to do and what not to do when buying in Italy.

More information about the Guide got to: http://www.ItalyBuyingGuide.com/guide.htm

And to end...

That’s it from me this summer month. Have fun and do let me know what your plans are for buying in Italy won’t you?

Until next time, best regards and have fun!

Gianna.

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