… even if you’re only living there part time (non-residents.)
At the end of 6 years, you could own an asset that has “paid for itself” and has possibly increased in value, especially if you’ve decorated or made any improvement.
This is based on what you will save on hotels or rentals minus the operational costs.
If you plan to reside in Italy more than 6 months a year, the timeline for the house ‘paying for itself’ will be much shorter. And, if buy a home cheaper than €70k, have friends and family visiting frequently who would otherwise be staying in hotels or rentals or you stay in higher end hotels or rentals, the payoff will also be shorter.
The two images of the homes below are in Liguria and Piedmont and are/were on the market for €29,000 and €46,000 respectively.
This is just my personal opinion based on my research and math. So here goes:
Hotel €80/night – Average
80 x 30 = €2,400 / month
(For simplicity, we’ll stick to hotels but short-term rentals for 2-4 people average €2,500 – €3,000 a month, so it’s in the same ballpark.)
€2,400 x 6 months = €14,400
€14,400 x 6 years = €86,400
Additional operational costs to consider:
IMU – Annual Property Tax Estimate
€500 /year
€3,000 /6 years
TARI – Garbage Tax Estimate
€30 /month
€360 /year
€2,160 /6 years
Utilities Estimate
€150 /month
€1,800 /year
€10,800 /6 years
Hotel/Rental Expenditure = €86,400
Operational Costs = €15,960
TOTAL: Hotel / Short-Term Rental Expenditure Minus Operational Costs = €70,440
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Please note this is based on the property cost and doesn’t include commission to the realtor, notary fees or registration tax because this varies so much.
These calculations are also based on a house which doesn’t require renovations or any major work.
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Also, it is possible to get much cheaper long-term rentals, but these are more difficult to find and secure, especially as a foreigner and often include a lengthy lease contract (2-5 years is normal.)
You’ll also need to pay year-round even if you’re not there and will usually be responsible for all utilities and repairs to the rental.
So, if you found a place for €600 /month that would be:
Long-Term Rental
€600 /month
€7,200 /year
€43,200 /6 years
TARI – Garbage Tax Estimate
€30 /month
€360 /year
€2,160 /6 years
Utilities Estimate
€150 /month
€1,800 /year
€10,800
TOTAL: €56,160
As with everywhere in the world, renting can be great but at the end of the rental, you have no asset.
Having said that, two ways rentals do make more sense are if you don’t want the responsibility of being a homeowner and/or if you do short term rentals in different parts of the country to experience a variety of places.
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Italian Homes Under 150k 