"... you may only use the house for an average of 40 nights a year." The Sunday Times
Why pay for whole ownership when you don’t have to?
Fractional Ownership. The smart way to buy a holiday home in Italy
A proven method of holiday home ownership. A modern and flexible way of owning a vacation property, with the security of deeded ownership and where the costs are substantially reduced.
Why pay for whole ownership when you don’t have to? With Fractional Ownership you receive all the benefits of ownership but without the full cost. You can also sell your share in the property at any time, and as with whole ownership you may achieve a positive return on your investment, as some of our owners already have.
Why Fractional Ownership? Appassionata’s research involved extensive discussions with holiday home owners in Italy and a full investigation of the Fractional Ownership industry, travelling to the USA for first-hand experience and to meet with industry experts.
Many holiday home owners were dissatisfied and disillusioned with the experience of outright ownership, especially as they were not using their homes for more than a few weeks each year.
The expense of buying a holiday home outright, along with the annual running costs seemed crazy, when you may only use the house for an average of 40 nights a year. The Sunday Times
Hence the reason why Appassionata developed the fractional ownership solution in Le Marche Italy, a much more cost effective and stress-free way to own real-estate in Italy. A real alternative to outright property ownership.
Based on this research, Appassionata highlight below the differences between these two different types of property ownership in Italy- click on the image to read the article:
*More details of the process to buy a property in Italy can be seen below.
Fractional Ownership is a successful, growing concept, but few people really understand exactly what it means, or the benefits it offers those wanting a holiday home in Italy. Just ask one of our 46 owners, or better still listen to some of them in this video.
Fractional Ownership creates a more secure and reliable solution for those wanting to share ownership of a luxurious item. The financially astute have demonstrated this over many years through their shared ownership of private jets, luxury boats, property and expensive cars.
The key to Fractional Ownership is ‘ownership’; you own a share of the property in perpetuity, with the right to sell at any time. Those owners that have sold their shares have seen a positive return since originally purchasing the share.
“Fractional ownership with Appassionata was a much more pragmatic approach to owning a home in Italy. The properties are meticulously restored, and fractional ownership was the solution to all of the expense and hassle of overseas home ownership.” Victor & Sandra Jason – Owners USA
The Italian property/real-estate purchase process:
Engage an estate agent. There are many options available but be sure you are dealing with a properly registered agent.
Once they have established your requirements and budget, they will search for suitable properties from their stock and through the local network. They will accompany you on all property viewings, translating where necessary, providing advice and assistance with negotiation and the submission of offers.
They will assist you with the technicalities of the property purchase process:
They will assist with all of this… for a fee. Currently standing at about 3% plus IVA (+22%) from the buyer, and an additional 3% plus IVA from the seller.
Once a verbal agreement on the price has been reached, the offer is formalised with a purchase offer in writing
The next stage is the preliminary contract of sale (Compromesso). In this document the interested parties agree the formalities of the sale in a legally binding document.
The completion is when the title of the property passes from the vendor to the purchaser through a public document signed in front of a Notary (Notaio).
The Notary (a government official) witnesses the transfer of title from one party to another and collects the taxes due on the transaction. The Notary does not act for either party and acts as an independent facilitator. You can also have an Italian Lawyer to oversee your interests.
Prior to the meeting, the document must be translated into the purchaser’s language, so the Notary can be fully satisfied that the buyer understands what they are signing. A translator will also need to be present at the meeting.
The Notary will need proof that any taxes due on the property are fully paid, he will also need proof that any mortgages or debts on the property will be extinguished either before or at the time of the sale.
On signing, the purchaser must pay the outstanding balance of the price of the property, plus the taxes and the Notary’s fees. This will normally be in the form of irrevocable bank cheques.
Once the transaction has been completed the Notary will register the new title within twenty-one days and you will then receive a copy of the document. If you have taken a mortgage, he will also register the mortgage deed.
These are substantial when buying a property outright in Italy.
For example, if you buy a renovated property for €1,000,000 the following are the approximate costs of purchase.
Purchase tax 9% € 90,000
Notary Cost* € 3,660
Estate Agent 3%* € 36,600
Lawyer* € 3,660
Furnishing Property € 75,000
Total €1,208,920 – associated costs are an additional 13.4 %
*Includes 22% IVA