Is it the right time to buy a house? Several factors say yes. Last month we talked about the mortgage interest rates, which are at all-time lows for both fixed and variable. Today we focus on other aspects.
1) SALES
Overall, the market seems to be at an inflection point. After the collapse recorded between 2006 and 2013, a period during which the number of sales more than halved (from about 869 to just over 403, according to the Revenue Agency), last year the trend it returned positive (to 407) and the consultancy firm Nomisma believes that the recovery is destined to consolidate (470 transactions in 2015, 508 in 2016 and 517 in 2017).
2) PRICES
This inversion of the curve should be followed by a rise in property prices in large cities, which – again according to the latest Nomisma report – will increase by 0,9% next year and by 3% in 2017. For 2015, however, estimates speak of a further drop (-2,9%) which will follow the drop in recent years. According to official data published by Istat, in 2014 the house price index fell by 0,7% on the year for new houses and by 1% for used ones. From 2010 to last year, the latter lost as much as 17,4% of their nominal value.
3) DISCOUNTS
Another sign of the gradual change taking place is the average discount percentage, i.e. the difference between the price initially requested by the seller and the price paid by the buyer. The percentage has stopped rising, settling on average at 15%. This value, however, hides a far from homogeneous reality, since the discounts on valuable homes are much lower than those that can be obtained for homes in the suburbs and in need of renovation.
4) THE NEW HOUSES…
When you buy a newly built house, the advantages are not lacking (from better energy performance to the absence of extraordinary repair costs for 10 years), but there are also some significant disadvantages: the purchase price is less negotiable than the market for used houses and is burdened with higher taxes, since VAT is paid on the actual price and not registration tax on the cadastral value. Furthermore, Tasi and Imu (if due) are more expensive.
5) …AND THE USED ONES
Those who renovate a house, on the other hand, can enjoy two important tax breaks: one for extraordinary maintenance work (which provides for a tax bonus equal to 50% of the expenditure - up to 96 thousand euros - to be spread over ten years) and that for energy efficiency works (in this case the discount is 65% for variable amounts according to the works).
On the other hand, in the case of the purchase of a used house, it is advisable to check the outstanding expenses, requesting that the seller obtain a release from the administrator and consulting the minutes of the last meetings. If there are arrears to be paid, the administrator can ask the buyer for the sums relating to the current and previous year. In this case it is possible to take recourse against the seller, but enduring the times of civil justice.
