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Italy - Calabria yields 10% on villas

Discussion in 'Buying Overseas Property' started by DC, May 3, 2007.

  1. DC

    DC New Member

    This market is starting to fly, there are very few experienced or good people in this market though much is promised. If you are looking for a new exciting European market, this may be the one you have been looking for. Demand is strong and for villa rents we can guarantee a yield of 10%. Wow.

    Contact us if you would like to know more (purchase)
     
  2. Italgenio

    Italgenio New Member

    Guranteed rentals?

    Guaranteed rental offers should be checked out thoroughly. Many have gone down the pan over the years. Is your guaranteed scheme backed by a bank guarantee?
     
  3. Calabrian Boy

    Calabrian Boy New Member

    Hi Calabria is the explosive growth area now the Jewel of Sea development is one of the most up and coming areas, the main developer and real estate agents are VFI Overseas. I fopund them to be easy to deal with and reliable. Like all developments the region has to mature and develop fist but I think we onto a sure winner here.
     
  4. DC

    DC New Member

    Hi Italgenio, these were the given figures by one of partners in Calabria, unfortunately they are not backed by bank guarantees, they were market figures. ie. price and returns. His primary business was in rentals so hence he knew the figures. As prices are rising, yields are falling, so now they are probably closer to 7-8%. thanks
     
  5. DC

    DC New Member

    Blah, blah, blah.
     
  6. italylaw5

    italylaw5 New Member

    De Tullio Law Firm is a Italian Real Estate property lawyer. It is a English speaking solicitor in Calabrian (Italy) .

    If you are buying a property in Italy and need a legal advisory send a query to contact us form.
     
  7. mickthepropertyguru

    mickthepropertyguru New Member

    Incorrect figures

    Hello Calabrian Boy,
    Id like to comment on your figures for profit (now deleted).
    You said €50k could be invested with 80% LTV Mortgage and with 15% appreciation over two years would give you a property worth €330,625 with a profit of €80,625. (161%)
    Basically you are saying put 50k down as a 20% deposit and on completition get a 80% mortgage. This would equate to 330,625 as you said in 2 years at 15% appreciation indeed giving you over €80,000........but thats not profit

    First of all the buying costs are 13% - 14% (10% vat + legal, notary etc) This equals over 30,000 on a property of around 250K.
    Second of all CGT of 18% - 20% applies in Uk and Ireland so this is a further reduction of profit.

    Ok so property 250,000 , appreciates by 15% for 2 years = 330,625
    as you said profit = 80,625 but........... minus €30,000 (Buying Costs) minus €16,000 CGT = 34,625 profit
    I haven't taken away any sales cost 3%-5% and other cost associated yet.
    With selling costs of 3% around €9000 included, this would leave you with a profit of just over €25,000.
    There is a big difference between €80,000 as you stated compared to €25,000 which is my figure ?
    Hope my figures are right now :)
     
  8. willowtree1

    willowtree1 New Member

    You may well have been involved on a winner Calabria boy if you worked or marketed this property for VFI,unfortunately anyone who bought on this development is not and almost three years on the majority of the development is still illegal will little real prospect of completion in the immediate future,except for a tiny percentage of beachfront apartments.

    There has also been zero progress on the much hyped 18 hole golf course apart from a set of plans provide by derek Jacobsen
     
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