La Provincia (our local Lake Como newspaper) reports that bookings for holidays and hotels on Lake Como are already up by 10 % compared to last year, and that the increase is most marked in visitors from the UK and the USA.
We have examined reasons why this may be:
- Effect of the tumbling euro? The purchasing power of the dollar and sterling is significant more than 2014, approximately 30% in the case of the dollar!
- Pre-bookings for EXPO 2015 with many people adding on days to see Lake Como and other areas surrounding Milan? Bookings are already at over 10 million and many more are expected to book prior to the start on 1 May 2015
- Opening of yet more high quality hotels on Lake Como?
- The Italian housing market is picking up so many visitors may feel it is a time to buy? Last quarter’s residential real estate transactions were up 5.5%.
- Beginnings of a financial recovery in the US and UK?
And last, but seriously not least …….LAKE COMO IS SO BEAUTIFUL, AND A FANTASTIC PLACE TO SPEND A FEW DAYS, A HOLIDAY OR A LIFETIME!
#LakeComo #holidays #hotels
There is never really a right or wrong time to buy a property – the decision is very personal, but with all things being equal, the strengthening dollar means that it may be worthwhile thinking about buying a property in Europe if your savings or income is in dollars.
We consider a market such as Italy that has yet to fully recover from the financial crisis is ideal for investment and it seems that things may finally be on the turn with the results last week from the Agenzie delle Entrate that the Italian housing sales are positive for the first time in seven years.
For the US dollar investor, as recently as May 2014, the exchange rate was USD 1.39 to the Euro, whereas on Friday 6 March 2015 it was at 1.09.
So what does this mean? Let’s take the average holiday home investor – for example with $300,000 to invest. In May 2014 this could buy an apartment on Lake Como for just under €216,000. Around Lake Como this should have achieved a 2 bedroom apartment. However just 10 months later with the stronger dollar this would be now €275,000 and thus open the door to a greater choice of apartments, and possibly even a small villa! At Lake Como Concepts we have villas starting at €260,000 so every extra euro really counts!
How will it go in the future? Will the dollar continue to strengthen? Who knows – talk to your financial advisor see what they are suggesting.
All we know is that Lake Como has a lot to offer to the investor – prices have held firm compared to other areas of Italy during the crisis and it is well positioned now to take advantage of Milan EXPO 2015! In addition with the news last week that annual Italian housing sales have turned positive, then it may be a perfect moment! So if you are thinking of buying have a look at the real estate we are selling at www.LakeComoConcepts.com
#euro #dollar #buypropertylakecomo
Yes, it’s official – according to the Agenzia delle Entrate – after seven long years in the red, the Italian real estate market has turned in positive results for 2014.
Property transactions in Italy were up by 1.8% in 2014 on a year by year basis, with the fourth quarter showing a particularly strong 5.5% increase. There were a total of 920 849 property transactions in 2014 with the best result coming from the commercial sector (+ 5.7%), followed by residential and manufacturing (+ 3.6%), whilst the service sector remains negative (-4.6%).
Some of the major cities in Italy saw double-digit growth in 2014, mainly Bologna (+ 18.5%), Genoa (15%), Rome (+ 13.9%) and Florence (+ 13.3%), whilst Milan and Turin both recorded a respectable growth of 5%. Interestingly, there was a 12% increase in transactions supported by a mortgage, with 40% of purchasers obtaining a loan and the average mortgage value was Euro 119,000.
So maybe it’s the time to consider investing in that property of your dreams in Italy, particularly if you put this together with the very favourable exchange rate of the euro against the dollar, sterling and the Swiss franc.