Lake Garda Real Estate Market
The real estate market of Lake Garda is flourishing.
Buying a property near Lake Garda may be a very good real estate investment from several points of view:
- properties have been constantly increasing their value above the rate of inflation;
- the demand for quality properties near Lake Garda is high, both for residential and investment purposes: in other words, it is easy to find a buyer whenever you decide to cash your investment;
- during the holiday season (April - September) it is profitable to let apartments and houses to tourists: some real estate agencies take care of all aspects for a fee (usually around 10% + VAT);
- the demand for year-round rent is even higher, due to the fact that most landlords opt for season rent.
Does it sound too good to be true? Actually, as it always happens, there is also a "dark side"!
First, Italian taxes on real estate transactions are very high.
As a rule, the buyer is required to pay 10% of the value of the property! This can be reduced to 3% or 4% (depending on who the seller is: a private individual or a company), but only under certain conditions. To name the most important: the buyer has to reside steadily in the house and is not allowed to resell it for at least 5 years.
Anyway, from the fiscal point of view, the situation is much better when you decide to sell your property.
Obviously, the above information is only intended as an overview of a complex matter, and you will need the support of a good tax consulting practice.
The second issue is that it is difficult to buy good properties at Lake Garda without the help of real estate agencies, because most landlords do not want to waste time with placing advertisements, answering the calls, meeting potential buyers, and prefer to outsource all this time-consuming activities to real estate agencies.
The commission asked by real estate agencies is usually between 2 and 4% (+ VAT) of the house price.
If you consider that the fees for the notary public are also high, it is clear that buying a property may be a very good business, but only in the long run.
The most required properties at Lake Garda are single-bedroom flats in residence with swimming pool, even better if in connection with a garage.
Desenzano, Sirmione, Lazise and Bardolino are the most expensive areas of Lake Garda; Manerba, Moniga, Padenghe and Peschiera are more affordable. The areas in the countryside around Lake Garda (let's say within 10 Km from the Lake) are cheaper.
Finding a property with a view on Lake Garda in Desenzano, Sirmione, Peschiera, is very difficult and expensive. Those areas are plain, so the properties with a view are only those very close to the Lake.
In Manerba, Moniga, Padenghe, Lazise and Bardolino it is easier to find an apartment with a view, since those areas are hilly.
Accommodation at Lake Garda
Why do so many people spend their holidays at Lake Garda?
South Lake Garda enjoys a mild climate, excellent connections with the main cities of the North of Italy (Milan, Bergamo, Brescia, Verona, Vicenza, Padova and Venice) by car (motorway A4) and by train, and it is served by two close airports (Montichiari and Verona).
All the area is very nice, clean and safe.
The food is great, and there is a vast choice of restaurants, ice-cream shops, take-away, fast food, pubs.
The entertainment offer is very rich for both families with children and young people: discos, swimming pools, amusement parks, cinemas, shopping centres, tours to the main cities, nice walks, and so on. So, nobody can get bored here!
Most tourists come to Lake Garda from the cities of the North of Italy: many of them own holiday houses where they spend the week-ends and some weeks in the summer.
Most foreigners come from Germany and the Netherlands, year after year: they really love Lake Garda.
The month of August is the most critical for finding accommodation at Lake Garda: it is wise to book some months in advance, as most Italian people go on holidays in August.
Hotels are usually expensive, so they are a good choice for a short stay.
The best option for a family with children is to rent an apartment, for one or more weeks.
Campsites are another possible solution, but, if you are not going to stay in your caravan, it is wise to check that they offer you a new bungalow with air conditioning.
Sights of Lake Garda...