Many parents coming from abroad start to think it could be a good idea to buy a small flat for their sons when they come in Milan to study, keeping it for the college years and then considering if to put it out for rent or sell it back to the market.
We believe the rent option is a much better option and we now explain why, this being in clear contrast to what many real estate agents ungry of fees tell around.
First: university does not last 4-5 years as it used to be, it's now a 3 years bachelor and 2 years master and in the majority of cases we witness, guys prefer to change after having completed the first three years and even during the first three years everybody "misses" a semster choosing to go on Erasmus to a different country... so at the end you risk buying a piece of real estate for just 2,5 years
Second: high costs of transaction, you buy 3% brokerage fee to buy a flat in addition to the different taxes and cost of the notary that could add up to another 3% compared to the value of the house. When you sell, most likely you'll find a different real estate agent who will ask you the same 3% ... so there's almost a 10% transaction fee on your real estate investment
Third: Owning a piece of real estate in Italy is not a piece of cake, the government is in depserate need of cash and real estate is the easiset area to address in order to get money imposing new and strange taxes and fees
Fourth: protecting landlords is not a priority of our politicians, tenants are considered still "poor families" needing government help... in case of dispute you will be most likely on the loosing side
We believe buying a piece of real estate in Italy, just for the sake of owning instead of renting during you sons' college years is not a good idea, unless, of course, you are not buying at market price but you are offered a "steal".
Feel free to share with us your ideas and comments, writing us at: firstname.lastname@example.org