The architectural artistry, the grand canal, breathtaking small islands and the Venetian cuisine are reminiscent to the floating city of Italy-Venice
Text: Damilola Dimeji-Ajayi
Situated on the northeast coastline of Italy with about 150 canals, Venice, the floating city of Italy is a hotspot getaway for visitors all through the year. Tourism is a key sector in the Venetian economy as various numbers of tourists visit the floating city all around the year. Porto di Venezia (Port of Venice) is the eighth-busiest port in Italy, hence, making the port the most significant in the Mediterranean hub for cruise ships. The Port of Venice is located at a strategic point of trans-European networks.
The Venice real estate sector is a seller’s market due to its high demand for holdings for sale which is inclusive of the limited properties that are available to property finders. The value of holdings remains high in which returns have a positive investment over time. The city is a major hotspot for property finders who choose to partake in the thrill of this romantic city, hence, searching for a potential buyer for your own Venice asset for sale will not be difficult.
When purchasing an estate in Venice, the initial step is the proposal of purchase (proposta) in which 1% deposit is conventional in order to enter a binding concord if the proposition is granted. The compromesso or contratto preliminare (first purchase contract) includes a 10-20% deposit of the actual agreement price which is used to form the filing for the final purchase contract (Rogito or Atto Notarile). The home must then be catalogued, which involves a charge of 3% imposta di registro.
State of the Market
The fluctuation of property value with the duration of time spent in the real estate sector helps to provide knowledge on the latest equity of negotiating capacity between property finders and house owners alike in the environment. A specific neighbourhood may be spotted as a good market for buyers in a metropolitan market although, foreclosures will become a key factor affecting home values in some years in Venice. According to Zillow ratings, 12.0 houses are foreclosed per 10,000 houses which is greater than the national value of 1.6.
Mortgage delinquency is the initial step in the foreclosure process. Mortgage delinquency refers to when a house owner does not make a mortgage payment. According to Zillow, the percentage of delinquent mortgages in Italy is 3.5% with U.S. home values have dropped by more than 20% nationally from their peak in 2007 until their trough in late 2011.
Cost Involved in Purchasing a Property in Venice
House purchase charges differ in Italy based on if you are buying a new house, a property for resale or whether the home will be your residence for the holiday or your residential home. The cost involved includes:
Estate Tax
Estate (property) tax is quite favourable in Italy in comparison to other countries. Contrary to what is believed, there are no restraints on foreign holdings in Italy. Property in Italy has two completely autonomous value measurements; the cadastral value (tax value) and the transaction value. The cadastral value is the value filed in the Official Land Registry while the transaction value is recorded in the purchase deed.
VAT
Buyers of new holdings do not have to pay registration tax but are bound to pay Value Added Tax (VAT) which ranges from 4% to 22%. VAT is charged at 4% for first-time home resident buyers, at 10% for second-home resident buyers and non-resident buyers, and at 22% on luxury houses.
Agency Fees
It is divided evenly amongst the buyer and seller and conventionally at the range between 3% and 8%.
Notary Fees
The notary fee is payable when you sign the closing agreement. The fees range from 1% to 2.5% of the declared value of the estate. The value of a notary is based on the property price list which is filed together by the Bar Association and may differ based on the town council which is subject to 22% Value Added Tax.
Legal Fees
Conveyancing is often carried out by a lawyer called avvocato. The legal fees are usually around the range of 1% to 2% of the declared value of the estate. Legal fees are subject to 22% Value Added Tax.
Stamp Duty
The stamp duty is called bolli which is levied at 1% for both residents and non-residents alike.
Potential Pitfalls to Avoid When Purchasing a Property
Failure to determine the exchange rate accurately when working out the final purchase price may affect the transaction as currency values change all the time. When the final price of the home differ significantly from the moment you made your offer, it may pose a big challenge. It is advisable to fix your exchange rate via a specialist foreign exchange company.
Another pitfall is assuming that there is only one vendor. In Italy, a property is often owned by the whole family, especially if it was inherited and except every owner’s signature features on the Compromesso, the sale could be abandoned. Ensure you find out how many people own the property you are buying.
Transportation in Venice
The Grand Canal cuts through the floating city of Venice, and the vaporetti (boats) are used for transportation. Vaporetto is a water bus that takes passengers from one point to another in the city. The #1 Vaporetto runs along the Grand Canal from the train station and makes many stops, so it’s a good way to cruise the main canal and get a good overview of the city. Also, you can make use of a taxi or a gondola. Gondolas are a romantic way to get from one location to another along the water waves.
Venetian Cuisine
Seafood, polenta and rice, seppia or cuttlefish and risotto nero (black rice) is coloured with squid ink are a big part of the Venetian cuisine. Try the Cicchetti, or little appetizers which are served in the bars of Venice and are mostly eaten before lunch or dinner, but, like Spanish tapas or Greek meze, you can also order a few for a light meal. Finish with an exquisite glass of wine.
Tourist Attractions in Venice
Venice is home to various architectural wonders and nature’s beauty. Historical places to visit in Venice includes St. Mark’s Square, Doge’s Palace, Basilica Santa Maria Gloriosa dei Frari, Scuola Grande di San Rocco, Chiesa di San Zaccaria, Ca’ Rezznico, Rialto Bridge, Grand Canal, Bridge of Sights and Ca’ d’Oro amongst others.
Featured in Prestige MagazineIssue 3. Vol.3 2018
