Hello - how are you? I hope you had a good Easter?

As you can imagine, while people here in Italy have been singing, celebrating, eating and drinking during the Easter holidays – it is by far the most important festival of the year – the earthquake in Abruzzo has been on everyone’s mind. I am sure you will join me in saying that our hearts go out to those who have suffered from this terrible event.

Sadly, it’s not the first major earthquake the country has experienced, nor is it the worst. The Irpinia earthquake in 1980 killed more than 2,000 people. One hundred and one years ago, the earthquake of Messina killed 130,000 people, a figure which is quite inconceivable. Earthquakes and tremors in Italy are, unfortunately, a common occurrence – it is a fact of life here. What is shocking, however, is that 101 years after Messina, Italy’s buildings are no better prepared for earthquakes than they were then, perhaps less so.

The main culprit is not just organised crime, which particularly in the south has a very strong hold on the construction industry, but – it pains me to say – a mafia culture, where construction jobs are given to friends rather than the best people for the job, and construction contracts are won by the cheapest quote and not by the best. It has been estimated that 80,000 buildings in Italy have not been constructed to standard. Even more shocking is that during the L’Aquila earthquake, the first buildings to crumble were new schools, hospitals and dormitories – that is to say, public buildings constructed with public funds!

Franco Barberi, a geologist and disaster expert, was among those complaining about what he said was Italy's failure to protect buildings that were at risk. “What makes one angry is, if this happened in California or in Japan or some other country where for some time they have been practicing anti-seismic protection," a similar earthquake "wouldn't have caused a single death", he said. What is even more shocking is that the building regulations are in place and the laws exist which ensure that buildings are constructed to withstand earthquakes – they are simply ignored.

All of this is very depressing news and certainly not encouraging to those who have been thinking of buying a house in Italy. I could try to give sweeping advice, however the north suffers from earthquakes as often as the south (the devastating earthquake in Friuli in 1976 is just one example of a northern earthquake) and I feel it would be unfair to simply say: buy in the north where there is less chance of cowboy construction companies flouting the regulations. This would be unfair and my next example will illustrate why.

Last week, when towns like L’Aquila and Onna were razed to the ground, another small town in the area escaped with almost no damage. The only building that was damaged was a medieval tower. This town has been sensitively renovated by private individuals who wished to invest in the community and who took great care and responsibility in restoring this old medieval village to its former glory. The town is called Santo Stefano di Sessanio, originally built by the famous De Medici dynasty and now restored by Swedish architect Daniele Kihlgren and the architectural studio Di Zio-Di Clemente.

Kihlgren restored many buildings in the town in order to create the Sextantio ‘albero diffuso’, a new concept now taking off in Italy, where many buildings in a historic town are restored and run as hotel rooms. Have a look at their website: http://www.sextantio.it. The home page has a lovely picture of the town, and you’ll see at the very top of the town the old De Medici tower, now in ruins. Keep an eye on this website: it looks like Kihlgren will be asked to restore other buildings in the area, and if I were looking to buy in Abruzzo, I would be speaking to this man!

Right – let’s get to this month’s offering. As it is exactly a year since this newsletter first began, I thought it a good time to have a look at the current situation of the housing market in Italy, with hopefully some helpful hints for you. Charles Purdy, our currency expert, gives you the benefit of his expertise, and my colleague Carol provides us with a heart warming case study about people who have bought a home in Italy. Finally I discuss how to let out that Italian home of yours before closing off for another month.

Good reading and best wishes,

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

Property market changes – the good and the bad.

There is no doubt that the Italian housing market has changed in the last six months, along with almost all the world’s property markets. All the official bodies confirm it. Both the number of sales and the value of sales are down compared with last year. Sales in 2008 were down 15.1% and prices are down by 2% for old and new housing (except, weirdly enough, garages, which are up 1%). Forecasts for 2009 point to an 8-10% decline in sales. Italians, who have never been fond of buying a house with the help of a mortgage, are even less inclined to do so now. While 50.6% of sales in 2007 were completed without a mortgage, in 2008 the proportion was up to 57.3%. It is also harder to get a mortgage in Italy today, and perhaps that’s not such a bad thing.

On average, in the first semester of 2009, the actual accepted offer on properties was 9.5% lower than the asking price, something we’ve not seen before. Generally prices advertised in the past were understood to be pretty close to the price which would have been accepted. Most Italian agents report an increase in the amount of housing stock for sale.

In our own corner of Italy, we have been stunned by the number of British homeowners who have put their properties on the market, forced to do so by the difficulties they are having due to the economic downturn in the UK. These people seem quite happy if they break even on the sale, and indeed this generally seems to be the case, especially when taking into account the weak pound. Their properties are being bought by Danes, Swedes, Dutch and even French buyers; in short, people who live in the Eurozone.

Interestingly enough, American homeowners are hanging on to their properties and one I know, Astrid from California, emigrated last month, making Italy her permanent home. Why? “The US is in such a mess right now, here in Italy people don’t realise what’s happening back home. The kids are happy, they’re already in school and adjusting real well. They play in the streets with the other kids, the entire community looks after them – it’s another world.”

So what is the positive side of all this? Well, first of all, there is a lot more property on the market to choose from. Secondly, prices are far more negotiable than they were a year ago.

Good news too is the new legislation, passed this month. It may well be of interest to those intending to buy detached houses. This is the new Piano Casa plan. Detached houses measuring less than 1000 cubic metres will be allowed to extend by a further 20% than currently permitted. Buildings that require demolition and reconstruction can now be extended by a further 35% if their energy efficiency is improved. Properties that have been built without planning permission, condominiums or those located in historic town centres, cannot apply for this extension.

Interestingly enough, the same week that the Piano Casa was approved by the government, the Abruzzo earthquake immediately halted its passage into law and now the Piano Casa will be radically revised to take into account earthquake measures. For example, the original Piano Casa was to simplify anti-earthquake measures – this, I am glad to say, has now been scrapped. Instead it is said that the final version of Piano Casa will have new anti-earthquake measures included, incentives for building reinforcement in earthquake-prone areas, as well as an anti-earthquake inspection which will be made obligatory if one wishes to extend a property by 20% of its volume. The cynic in me says, let’s see if in practice these regulations are actually adhered to, considering that the few regulations there are have been regularly flouted. However, we shall wait and see.

Speaking of the Italian government always makes me think of Italian bureaucracy, and speaking of bureaucracy, the Italian government has launched a new website which TV ads say will help explain the ins and outs of Italian bureaucracy to Italians. Unfortunately the website has not been translated into English, but if you have any Italian, try having a look at the Questions and Answers page, which has a few interesting subjects listed. My favourite questions include:

Where is the closest medical facility that treats Lyme disease?
Is it legal to work as a door-to-door hairdresser?
Do you still need a doctor’s certificate to join a gym?
Can I sell my car to my wife?
Can I take a day off on the same day as a trade union strike?
Do I have to pay my TV licence? (The answer to this one is interesting: from 2008, people older than 75 years of age with a total income of less than 516.46 euros a month no longer have to pay for a TV licence).

The website is www.lineaamica.it.

If you are thinking of buying in Italy, please get in touch with me and have a chat – my number is 0207 898 0549. I do have really reputable people in Italy who will be able to give really good, honest advice as to where and what to buy. Or if you would rather fill in the form just go to:
http://www.ItalyBuyingGuide.com/property.htm

Is sterling out of the woods yet?

by Smart Currency’s Charles Purdy.

Is sterling out of the woods yet? A fair question given what we have been through and the vast amounts that have been thrown by our government at the banks and the economy in a desperate attempt to stave off a depression.

My response tends to be conditional. I think most people would agree that sterling is too low against the euro and, even though we may never return to a rate of over €1.50/£1, most consider a rate of €1.20+/£1 feasible.

So what is stopping us getting to this rate? Uncertainty on two fronts. Firstly, we need to see a period of financial stability and a period in which we can see the world economies moving forward not backwards. This is a matter of time and is likely to be measured in months and perhaps even years. Also we need to be sure that the UK does not need to go to the IMF cap in hand for a bailout, given the huge debts and problems we have. Timescales for this scenario are shorter but if it happens then sterling will lose value very quickly and we may look at the current value of sterling as the halcyon days when £1 was worth more than €1.

That is why I always ask clients to have a clear and realistic exchange rate in mind when they are looking to buy currency - trying to guess what is going to happen tends to be a fools game with exchange rates doing the exact opposite of what you hope or expect. When this happens great uncertainty arises, leading to increased stress levels as you need to find further money or have less than you expected. Not a great outcome and something that could be avoided or at least minimised by have a partner such as ourselves working with you.

If you haven’t had a chance to discuss in detail what the alternatives are for your currency concerns then please give us a ring and we will be happy to talk about your possible options. Call on 0808 163 0102 or if you'd like to get a Better-than-Bank exhange rate quotation go to: http://www.smartCurrencyExchange.com/smartsquotation.htm

To read the latest market information on Serling and the Euro go to: http://www.ItalyBuyingGuide.com/Currency300409.htm

Property: Casale il Verdicchio, Apiro

Price: main 4-bedroom country house €280,000

Price including guest house €399,000

I must say that when I read about this property I was really bowled over. It seems to have it all – a truly lovely, good sized home set in beautiful surroundings with the added advantage that you could earn an income by renting out the barn area as a B & B or rental cottage – what more could one ask for?

Sitting at the head of a valley in the Verdicchio wine area, it is a recently restored country farmhouse with a partially restored guest house (converted barn). The property is situated 500m above sea level with charming views of the valley, vineyards, the Apennines Mountains and, on a clear day, a panoramic view all the way to the sea.

This country house has been restored with high quality materials, it features wooden beamed ceiling, double glazed windows, broadband connection, central heating. The main building is approx 240 sq m on two floors with four bedrooms and four bathrooms. It has been totally restored but has carefully retained all original features.

The barn is a further 130 sq m and, once internally completed, it will have two bedrooms, two bathrooms, a large lounge and good size kitchen. To complete restoration of this portion of the property has been costed at approximately €50,000.

The whole property sits on 2,000 sq m of land, close to a good, quiet country road. The village of Apiro is less than 5 minutes' drive away, with all services available. Lake Cingoli is a popular swimming and fishing spot and is only 5 minutes away too. The sea is just 35/40 minutes away while for those looking for trekking and walking, the Apennines are only 15 minutes away!

Access is via Ancona Airport, a 40 minute drive.

The property, as I mentioned, is ideal for a holiday home as well as a B&B, which is what it is currently used for.

If you want to know more about this property, or indeed any others in Italy, please give me a call on 0207 898 0549 or fill in the property form at:

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

When I receive the form I will phone and have a chat about your requirements and options.

A Readers Experience

As I may have mentioned, my colleague Carol has been asked to write a few case studies for a glossy magazine about people buying property in Italy – I am going to pop one such case study in for you to have a look at. Please, if you have an interesting story, Carol would love to hear from you too.

Tony & Assia Green had long dreamed of spending more time in Italy with their family, indulging in the family’s hobbies of water and snow skiing.

Tony takes up the tale:

“Being an avid water skiing family, and having spent many enjoyable holidays throughout the 1980’s skiing on various lakes and seas, we wanted to try somewhere different. The winter months of 1990 were spent searching for an area that offered all our requirements, including culture, scenery and, of course, good conditions for water skiing and water based family recreation. Eventually, we selected the lakeland area of Piedmonte and the choice narrowed down to an Italian resort village named Connobio on Lake Maggiore, just over the Swiss border.”

But they were not alone: “Within weeks of deciding to go, word had spread within our local water ski club. By August, six families set off from Yorkshire with a camel train of towed boats and baggage”laughs Tony. “As we approached Locarno, in Switzerland, we had our first magical view of Lake Maggiore, with its clear water glistening against a backdrop of high mountains. Mesmerised, we drove the last 18 miles alongside the lake, over the border into Italy and our destination of Connobio. The town has both rustic and baroque architecture, quaint narrow streets, lakeside bars, cafes and restaurants which - as we later found out - sold their own local cuisine, wine and home made ice cream! “

That holiday at Lake Maggiore was a watershed moment for Tony, Assia and children Danielle and Sam. “Never had we been to a country where the family unit was the focus of life, where life’s pace slowed as you breathed in the pure air blown from the mountains, where the tourist was made so welcome, where kindness and hospitality accompanied by the words ‘no problem’, was the standard reply to any enquiry for assistance.” recalls Tony. “That holiday was idyllic, with our time spent water skiing, swimming in the warm waters of the lake, sightseeing and village hopping by boat, with nightly barbeques at the camp site where we had hired numerous caravans for our party.”

They discovered that they were perfectly placed to visit the many islands dotting the lake by boat, as well as the many lovely villages on the eastern shores of the lake. By car the town is a 2 hour drive from Milan and Gerona and even closer to the lakes of Mergozzo, Orta, Como, and Varese, each with their own spectacular scenic mountain backdrop.

“At the end of the holiday, everyone was awestruck by the experience” recalls Tony. “But on a personal level, for Assia and me, it much was more. We agreed that we had left our hearts at Lake Maggiore and decided that our ‘life plan’ would include one day owning a home there.”

Years passed, with the family returning to Lakes Maggiore and Orta regularly, making good friends with German, Italian and Dutch families who also returned year on year. As Tony neared retirement the family were determined to make their dream a reality. By then however, Assia and Tony had discovered snow skiing - and were hooked. Their perfect dream home now had to include proximity to the lakes and the ski slopes!

After years of searching, their plan ‘came together’. “Our good friends and soul mates of 17 years, Hans and Helmi Mathes, connected us to their friend - a part time estate agent – who showed us many properties” recalls Tony. “Our last visit took us to Oggebbio, an area on Maggiore which we knew fairly well. We walked down the steps to the 2 storey house, located on the lower reaches of the mountain above the lake, onto the lower patio. We were breathless at the 360 degree panorama of the lake offered by the property, which sat 150 feet above the lake on an outcrop of solid rock, but nestled in wooded surroundings. Assia and I exchanged a knowing glance which meant ‘This is the one’.”

Tony remembers: “The price was just about affordable. We put in our bid to the elderly German owner the following day and, just as the sun was setting over the lake, we ecstatically learned the bid was accepted, and the house was ours. Needless to say, a bottle of vino was immediately opened!”

The German owner was asking for payment in Euros, via the local Notaire. This meant establishing an Italian Bank account and utilising the services of either a UK bank or a currency company to transact the currency exchange. Tony researched their options and determined that UK bank charges and exchange rates were too costly.

“When seeking to convert sterling to Euro to pay for the property, I naturally shopped around and tracked exchange rates and conversion offers over many weeks to exchange at the most favourable rates and terms” explains Tony. “Being a retired Policeman, I am used to making informed decisions based on evidence, research and instinct. In the search for a currency agency I could trust, I scoured the internet and settled on Smart Currency Exchange. My instinct and trust was well placed, as they seamlessly made the transaction happen, establishing the most favourable of exchange rates and depositing the funds in the account of our choice.”

One to one contact provided Tony with the reassurance he needed to follow his instincts. “We received a professional service, tailored to our needs, one that eased our purchase considerably. Throughout, we were kept informed of progress, and most pleasingly, we saved over £000 compared to the rate offered by my UK Bank. Those funds paid for a kitchen in our new home!” grins Tony.

“Our life plan in Oggebbio for our ‘3rd age’ is now fully achieved and we are set to join our many European friends in our Italian community!” says a delighted Tony. “Several UK friends we have introduced to Lake Maggiore are contemplating a house purchase on or around the lake, and needless to say, we have informed them of the invaluable assistance and advantages to be had from engaging a really good currency company – it definitely added to the success of our purchase.”

I love a happy ending! If you would like help finding you dream property in Italy, please phone me on 0207 898 0549 and we can talk about your requirements – I have a few wonderful people who can help with this. After the earthquake, it is clear that it is essential to deal with reputable, knowledgeable property professionals.

Holiday Lettings

I talked about holidaylettings.co.uk last month, suggesting that you access their website about properties abroad in Italy and that you ‘try before you buy’.

I had tremendous response, either from people who had rented properties through the website or from people who had properties abroad that they were advertising to let through them. Without exception they were all thrilled with the service they received – in fact, just a glance at their testimonials page will bear me out here.

It occurred to me that this really is the perfect site to advertise your property abroad if you have decided to rent it out. Suffice it to say that holidaylettings.co.uk was ranked in the top 10 of the most visited property websites throughout 2008, ahead of all other UK holiday home letting sites, by Hitwise, the leading online intelligence service.

I went into the website myself and I must say that I found the whole process very professional and easy to set up. Once you log in to place an advert and give your contact details, you are led through the whole process with questions such as property location, how to get there, transport links etc. You then go on to describe the property in your own words.

Once complete, this application then goes through to their Activation Team for payment. What I like is that they also check on whether the property meets the company’s criteria plus that the advert is both grammatically correct and that the content is sufficiently appealing. They do have certain minimum standards which ensure the best performance for not only your individual advert but also the site as a whole. If necessary they will revert to you with suggestions on how to make the advert even more attractive to prospective clients and will suggest anything that needs to be included in order to have the most appeal. Should you doubt your descriptive skills, a member of our Customer Service Team can even set up your advert for a £20 + VAT fee.

The home description is an important part of your advert and is designed to provide an introduction as well as inspire those reading it to pick your property. It should provide a broad and inviting overview of the kind of holiday potential guests could expect to have if they came to stay at your property, without going into too much detail about specific facilities - these can be mentioned later on.

Pictures are the most important aspect of your advert. They are often the first thing people look at and are therefore crucial to forming first impressions of your home. Enticing photos will encourage people to look further into the photo gallery and the rest of your advert; having good photos will help maximise the rental potential for your property and help boost the number of people that view your advert.

Their offering includes the Classic Advert and the more expensive but more comprehensive Premium Advert. There are also many additional extra services available, including Advert access 24/7, Lettings advice, Photo enhancements and Inputting service. Additional marketing services include Spotlights, Late deals, Early bargains and Additional adverts.

Once activated, booking enquiries sent via your advert go straight to you directly and holidaylettings.co.uk can even set up free SMS text messages to ensure you don't miss out on that all important booking – how brilliant is that?!

On holidaylettings.co.uk you really can show off your holiday rentals to their full potential, giving you exposure to more than 2 million holidaymakers visiting the website every month. How do they reach such a large audience? Well, they advertise in over 28 magazines and newspapers monthly, reaching more than 16 million readers. They are also proactive in their marketing and their latest New Year campaign reached millions of people travelling on the London Underground and in cabs around London. They achieve top search engine rankings and invest heavily in online marketing to ensure the highest levels of holidaymaker traffic to the site.

There are really just too many advantages to list here: for instance, to see if your property is appropriately priced you can take a look at other similar properties on the site to see that you are not overcharging. You can also refer to their pricing advice page. You can check on how your advert is performing by clicking on the view enquiries section of your home management page. From here you can see the number of hits (visits to your page) you have had over the past 30 days and the number of enquiries you have had over the course of a year. The advantages are endless. It really is a well thought out and intensely helpful website that should maximise the number of people looking to rent your property.

One of my associates has managed to get a very special deal for Guide Readers on the holidaylettings.co.uk website. If you enter the following promotional code you can get 15 months of advertising (of your property) for the price of 12 months – Code: 45749. Or, just go to: Holiday Lettings – the code will appear automatically.

The Italy Property Buying Guide

Today, when times are tough financially, it’s even more important to be on your guard and to really research what you are doing, how you are doing it, and who you are using along your overseas property journey to help you to achieve your dreams.

There are many people out there who will bend over backwards to help you and to ensure that things go well for you. However, human nature being what it is, there are also those who will be looking after their own interests with little or no regards for yours, so I would urge you to take care.

The Italy Buying Guide outlines the whole property purchase process simply and clearly, pointing out all the do’s and don’ts and all the pitfalls that can await the unwary. It is so easy, in the heat of the moment, to let your heart rule your head – but forewarned is forearmed and, with the Guide by your side, you will have all the information you need to ensure a successful purchase.

What I have found is that normally sensible, lucid people take risks abroad that they would not dream of taking if buying property in the UK. Not retaining their own lawyer but using the vendor’s is a classic example, and the one that I hear the most harrowing and tragic tales about.

Let me say no more: I leave it to the Guide’s readers to do the talking! To order a copy, go to:

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

The Italy Buying Guide helped assist me to have the confidence to travel to Italy this summer for a month to look for my ideal location to buy a house. The descriptions in the guide proved to be true to my own Italian experience and proved to be a valuable help in helping me to believe in my dream.

Wendy Erskine Steele

Goodbye for now

Well, I think that’s all I have for this month. I would like to say thanks so much any of the readers that visited the Overseas Guides stand at the Dolce Vita show last month in Olympia – it was wonderful to meet and chat. Thank you too for the positive feedback – it’s nice to know we’re proving useful!

Please keep in touch and remember, you are always welcome to phone, or even to pop in for a cup of coffee if you find yourself nearby Hammersmith, London, where our office is located. Any help needed you have only to ask – phone me at 0207 898 0549.

Kind regards,

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