Thinking about investing in real estate? You’re not alone! Real estate has always been a popular option among Italians. But is it really the right investment for you?
Bricks and mortar vs. government bonds vs. pension funds: which is better?
A recent study by Moneyfarm compared real estate investment with other options such as government bonds and pension funds.
- Real estate: These offer advantages such as the possibility of leaving an inheritance and potential appreciation through inflation. However, they are illiquid investments and incur management costs.
- BTPs: They are easier to manage and offer a certain income, but their value can fluctuate based on interest rates.
- Pension funds: They allow for portfolio diversification and can offer attractive returns over the long term, but liquidity is limited.
Why invest in a seaside house for holiday rentals?
If you’re looking for a real estate investment, beach houses are an excellent option. Here’s why:
- High demand: Tourism is constantly growing, ensuring a high demand for beach homes.
- Attractive income: By renting out your home during the summer season, you can earn a significant income.
- Value over time: Well-located properties tend to appreciate over time.
But how much does it pay to invest in real estate in Italy?
First, it’s important to note that not all properties offer the same returns: in large Italian cities, the yield is slightly lower than the national average , due to higher purchase costs, but the market can vary significantly from neighborhood to neighborhood and sometimes even depending on the street. If we consider the average Italian home, the average in Milan, and the average in Rome, we’ll notice that the former guarantees the highest net yield, calculated as the ratio between the average rent (net of property tax and flat-rate tax) and the actual purchase cost (including taxes, notary fees, and real estate agency fees). Based on this calculation, the national net yield on a rental property is around 3.1% , while in Milan and Rome, due to higher purchase costs, the yield drops to 2.7% and 2.9%, respectively.
MC Just Holiday is an agency specializing in seaside real estate investments. It offers:
- A wide selection of properties in highly sought-after tourist areas.
- Complete assistance in choosing and purchasing your home.
- Rental management to ensure a secure and steady income.
Want to know more?
Visit our website and discover our fantastic offers !
Source: idealista.it
