For years the real estate market in Italy has been one of the most solid sectors because investing in brick was considered one of the most profitable and intelligent moves to make. With the crisis of 2009 and the collapse of the currency, not only the euro, also the trend of the real estate market has become fluctuating and it was not easy to get out of a long dark moment. But is it worthwhile to invest in bricks and mortar today?
If you would like to learn more about other types of investments, we have the following articles for you: How and where to invest today, Investing in Startups: The Guide, How to Invest Risk Free Savings, Investing in Gold, Investing in Online Stock Exchanges.
Why invest in the real estate market?
Many experienced economists confirm that in fact investments in this sector are growing again because real estate is still a profitable sector both for those who have to buy a first home and especially for those who have money to use for a second home, a property, an apartment, a shop or even a garage that can become a way to increase profits with their rents.
The prices per square meter, which is at the beginning of the 2000s were still very high, in many areas of Italy and not only the suburbs have fallen and more affordable. So focusing on the brick is back to be convenient, an opportunity to be seized on the fly both for the properties to be renovated that can be purchased at very low prices before deciding how to modernize and put them back for sale or rent, both for the newer ones. Analysts all agree that the value of real estate in the medium term is expected to rise by at least 10 to 20% making the investment today a bargain tomorrow.
The main investments in the real estate market
The most widely used method of investing in bricks and mortar is to buy a house, but it does not necessarily have to be done directly: in fact, banks and other financial operators offer various possibilities such as ETFs, i.e. investment funds that commit investors’ money without, however, buying real estate directly, with all that this entails, even at a legal level. So you can only buy shares or portions thus immobilizing figures that can be high or medium. One of the advantages is that you do not have to follow the investment directly, but who does it for us.
How to invest in the real estate market
But how much do you have to invest to make sure you get a good deal in the real estate market? The safest way is to rent small apartments, 35-40 square meters, possibly already furnished because they can be rented immediately to students, singles or couples living together. So these are one-room or two-room apartments, apartments that can be vacated in a reasonably short time (two or three years): they require little effort on the part of the landlord and each time the rent can be updated to the new fees.
The real estate market is always convenient because it is an effective tool to have continuous returns over time even if you have to consider all aspects: an accommodation or a property in the city is assumed to be occupied all year round, one at sea or in the mountains instead becomes a holiday home and then even the rents in proportion will fall while the expenses to maintain it, starting with those ordinary and extraordinary condominium remain the same. The real gain, however, comes from the rents and therefore it is necessary to think in perspective even if the landlord must comply with all the rules, starting with the one on certifications.