property development
TRANSCRIPT
PropertyDevelopment
“ITALY IS SET TO BECOME THE NEXT PROPERTY HOT SPOT”…ACCORDING TO THE FINANCIAL MAGAZINE “MONEY WEEK”
The Development Process
We locate – we buy – we renovate – we sell – we share the profits
First of all we identify prime locations within the more affordable and up and coming areas of Italy
We evaluate. If the property has the potential that fits within our remit of location / land / views / bonus: pool and price
We check land deeds, neighbours, planning conditions, nearest airport
We allocate a budget, negotiate on price, arrange for an honest 'preventivo' (estimate) from at least 2 builders, to include 10% contingency plan in case of unforeseen problems
And next:We select and engage an Italian legal team
We select and engage local building team & talk to people who have used them to see their work
We make sure the renovation retains its original Italian character & we enhance using stone and quality materials keeping its rustic feel and quality
We select an architect or Geometra (Italian) & visualise what the chosen renovation project will look like when finished
Using colour visuals of what could be, we market and promote the offer to the public both online & in publications & budget for this
Finally:
We PRE SELL the finished property ensuring we receive all funds to cover the property acquisition, legal costs, renovation costs,with a 10% contingency fund included
Pre selling will mean a discounted price, so that there is benefit to the buyer, if they wish to sell once completed
Development Budgeting
The ENTIRE cost of property/land and construction, including legal fees will be the down payment
The down payment, also known as the deposit is required to hold the property for the buyer.
Once we receive this down payment, only then do we begin construction, with staged payments every 3 months
If payments are not met, we keep the property for a new buyer, or we build and use for rental
Information needed for each project:
1. Purchase price?
2. What you get for this price?
3. Check land deeds, neighbours, planning conditions, nearest airportArrange for an honest 'preventivo' (estimate), from 2 builders
4. A breakdown of your build/conversion/renovation costs using quality materials Cost just to build Agrezzo( the shell ) minimal is better
5. Expected end value? Before and after price?
6. Level of contingency 10%
7. Time scale for the project, how long will it take to renovate?
8. Renovation builders experience proof of past work?
9. Builders costs?
BEFORE
£145,000
AFTER£650,000
Properties:Before and After
FARM HOUSE5 bedrooms3 bathrooms500 sqmLand: 6300 sqm
PRICE £37,000 (before) £550,000 (after)
BEFORE
AFTER
Properties:Before and After
Some Property Examples
Some Property Examples
Development Plan We will be: Getting a copy of planning permissions & the compromesso – the contract that
binds you to going through with the sale. Talking to a Commercialista (accountant).
Researching building regulations for that area. Are there any future construction plans?
Finding details of any planning or building restrictions, if applicable, for that area
Providing some proof that no debt is still owing on property or land or legal.
Providing proof we would have 100% ownership deeds.
Outlining fees involved: buying costs, agents fees, notary fees, taxes, surveyors fees, architects fees.
Producing Architect’s visuals of finished home with views.
Detailing how we should market the property, cost of marketing, who the audience will be & the most cost effective way to attract buyers for this market
BEFORE we sign, checking with a Commercialista how much we should declare as the value of the property to avoid paying too much tax and also to avoid being fined by the Italian taxman. (The price we declare will not be the same as the price we pay for the property. This is often a slightly shocking process to many buyers, but it is perfectly normal procedure in Italy.) Always take legal advice before signing the Compromesso
We can offer the services of Dr Antonioni, a qualified lawyer and accountant specialising in property law and taxation. [email protected]
Estimating TOTAL EXPENDITURE
Finally, explaining why we think this would be a great investment !
This is an excellent opportunity for property investors to combine strengths and mutually benefit in awin-win opportunity for each of the stakeholders.
We extend to you an invitation to invest in Italian real estate the “No Hassle” way:
For more information, please get in touch. We will happily answer any of your questions.
Steve Cole:Tel: 07872 163161
or Carlo Cocuzzi:[email protected]