FAQ – Real Estate (EN)
Key questions and straight answers to invest in property in Italy and abroad with clear criteria, firm timelines, and controlled risk.
1) First step to invest abroad?
Target market analysis and preliminary due diligence on regulation, taxation, demand, and expected yields. Without data, it’s speculation.
2) Typical acquisition timeline?
60–180 days, depending on country, asset type, permits, and due diligence complexity.
3) How to compute real profitability?
Net ROI and IRR: actual rents, vacancy, local taxes, OpEx/CapEx, insurance, property management, financing costs.
4) Required documents?
Title, lien searches, planning compliance, MEP/energy certificates, floor plans, existing leases, technical and tax reports.
5) Safe remote purchasing?
Yes. Use secure data rooms, notarized POA, escrow accounts, recognized e-signatures, independent surveys. Document every step.
6) Main risks and mitigation?
Legal/structural issues, overpricing, rent volatility, regulatory shifts. Mitigate with full due diligence, cash-flow stress tests, insurance, protective clauses.
7) Residential vs commercial vs industrial?
Depends on goals and risk. Residential: higher liquidity, mid yields. Commercial/industrial: higher yields with more cyclicality and vacancy risk.
8) Taxation for foreign investors?
Country-specific and treaty-dependent. Do tax planning upfront; estimate purchase, ownership, and income taxes.
9) Sensible minimum budget?
Enough to cover transaction costs (3–12%), works, cash reserve, and management. Too small a budget limits asset quality and diversification.
10) Recurring expenses?
Local property taxes, insurance, maintenance, shared utilities, property management, inspections, leasing/agency fees.
11) How to pick a property manager?
Verified track record, clear SLAs, monthly reporting, KPIs on occupancy, collection time, cost-to-income, tenant satisfaction.
12) Exit strategies?
Unit-by-unit sale, sale to an institutional investor, refinancing. Plan exits before purchase with target price/time thresholds.
