News: Brits beguiled by Lake Garda

Fri, 23 Nov 07

Lake Garda in Italy is becoming increasingly popular with UK and Irish buyers...

Lake Garda is a region of Italy that has a strong local market and one that is also favoured by Italian city-dwellers thus creating high rental returns for property investors.

It seems incredible therefore that so many buyers are enticed into ‘bargain’ markets such as Le Marche, Calabria and Abruzzo where local markets are weak with Italians not necessarily wanting to invest there themselves.

One of the main rules when investing in overseas property is to establish whether there is a local market. A strong local market not only dictates the potential capital appreciation that an investor can achieve but also guarantees them an exit strategy, so that they can realise their profit.

Importance of a local market

Sarah Ferrara, Managing Director of Garda Homes, says, “Budget properties in budget regions the world over offer investors the opportunity and means to be able to get onto the overseas property market. What appears at first glance as an outstanding investment opportunity can often be something of a damp squid, with many buyers discovering that the capital appreciation they first sought is just not there and that their exit strategy is blocked by the thousands of other investors caught in the same trap.

“The professionals within the industry will highlight again and again just how important it is to invest in an area that is attractive to locals, within a market that is already established and one that has the means and infrastructure to continue being popular to all. The term ‘investment property’ should mean just that. How will my property increase in value and over what time period? What are my rental opportunities and how will I realise my profit when the time is right to cash in my investment?

A mild unexploited ‘microclimate’

Sarah continues: “Straight forward questions such as these should provide straight forward answers, rather than relying on vague promises of vast returns with no basis in fact. The cheapest property doesn't necessary translate into the best investment.”

“If we take the unique Lake Garda region as an example; it is an established market that has not been exploited. Its mild ‘microclimate’, outstanding scenery, excellent water sports, fine cuisine and ease of accessibility including 6 airports used by several budget airlines within the region all make it an excellent location.

“Favoured by Italians wanting second homes to use on weekends and in the summer, there will always be a stable investment market with good capital appreciation and a red hot rental market. Tough building controls have ensured its longevity, with a maximum of two storey new builds, which are limited in any case, and local materials such as marble, stone and brick used in construction.

Great value for money

Sarah concludes: “It is a region that will never become over developed and, as a result, the friendly people, stylish lifestyle and sophistication will always remain. The prices may not be as attractive as the ‘budget’ regions but it is a market that will perform and tick all the boxes on an investor’s checklist, and many buyers may be surprised at what good value for money the area can offer.”

Lake Garda is becoming increasingly popular with UK and Irish buyers looking for upmarket but affordable properties in Italy. It offers a perfect lifestyle choice for all purchaser groups; families, buy to let investors, retirees and professionals. With American and Russian investors increasingly attracted to the area, its growth is ensured..

For more information, please contact: http://www.gardahomes.co.uk

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