Zero rates: Italians return to invest in the property market
August 5, 2016, ROME (WSI) - The Italians increasingly getting more involved in real estate purchasing, which is the only option considered valid today to invest. Intesa San Paolo and Centro Einaudi made a special study on savings and financial choices of current investors.
The mild recovery, combined with the volatility of financial markets, but the low level of yields, are behind the growing of precautionary saving motivation (58.3%, up 10 points). It increases a little (8 to 8.5%) saving for the house, but it confirms the overcoming of savings made for children (17.1%) than that allocated to the real estate.
According to the survey of 567 small investors, to push Italians towards the brick are on one side the low rates and on other, volatility.
First of all, the conditions of zero interest rates appear unusual for small savers. Being introduced in 1959 for the first time, there were no correct experience of this type of market. Secondly, the guidance of the European Central Bank is expected that the containment of the returns will last until it is necessary to fight deflation. Thirdly, rates to zero and minimum cover both the returns of financial assets (such as obligation and deposits), both the cost of the financial capital expense (such as interest on mortgages and loans in general).
The survey shows that small investors are turning to buying real estate also because "this is the market for capital goods that they directly know best and which are probably more interested." Looking at the numbers of prospective buyers of a new home in the next three years they are between 11 and 19% of the sample. The 43% are considering to buy a better house and 29% on the other hand need a bigger house.
The houses that deflation is back at the center of the ambition of a significant share of small investors, are not only ones to inhabit, but also those which will be rented. With the descent to zero interest, rental income returns to be competitive.

Italian Real Estate Loved by Foreigners. Golden Moment in Some Regions.

NEWS July 25, 2016 - Foreigners wishing to purchase property in Italy and the demand for real estate coming from abroad grew by 52.4% compared to the same period of the last year. Germany took first place in the ranking report dedicated to nationalities, gaining 15.16% of the total of incoming requests in the first half of 2016. Then the United States (14.27%) come, stable in second place as last year, and Britain (13, 67%). The top ten list then sees France (7.19%), Belgium (6.78%), the Netherlands (5.60%), Switzerland (4.88%), Sweden (4.03 %), Canada (2.63%) and Brazil (1.52%). Despite the temporary setback of the English due to the uncertainty of Brexit - overall the balance is positive. The British, famously the hard core of real estate investors in Italy, are growing although at a less sustained rate (22,28%) compared to the general, going from first to third place in the rankings relating to nationality, exchanging places with Germans. The British began to be a bit 'of time to direct their interest towards alternative Italian destinations with smaller budgets. With the advent of Brexit this trend is consolidating and perhaps also an opportunity for more unknown areas of Italy. As for the Germans they are increasing their demands at considerable pace (+119.25%). In detail, the average price of properties required stood at 435 mila euro, more than 67% covers buildings that have a value of up to 250 thousand euro and the luxury segment carves out a large chunk of 14.31%. As for the type, the choice falls mainly on real estate rather than on independent apartments, and a majority of the requests for habitable houses (63.50%) . As many as 27.07% of the requests is for buildings to renovate, partially or completely. Toscana, Liguria and Puglia are confirmed as the preferred regions, followed by Lombardy and Umbria that close the top five. Also as part of the performance by region, Calabria, Friuli Venezia Giulia, Basilicata and Molise are living a golden moment than the previous year, with a more than doubling of the required rate.