Banking

Buying a Place in Italy

We decided to do a series of BLOGs on our experience in buying a house in Italy. We are not saying that the way we did it, will be for everyone. It did work for us and we are very happy with the decision. Many books talk about the horrible red tape in dealing with Italy but we had a very smooth ride through the whole process. Things do go slower in Italy which is really good for your health and blood pressure. The main advice is to remember things are done differently there than here. So relax and enjoy the experience …

We started looking in Tuscany (as all Americans do) but the prices are just too high. We wanted it all, a Seaview, a mountain view, a nice place with modern conveniences, a real Italian city void of tourists and the right price. Impossible right? Well we got it all and at our budget. We saw a place that was in a newly constructed building (a rarity in Italy) and it had fantastic mountain and a Seaview. It was a few kilometers from the beach. When we saw the price we thought it must be a time share but it was to purchase. It is a building with 4 units per floor and two main floors. There was a penthouse occupied by one of the owners children and two more units in the basement opening out onto the yard.

We actually put a non refundable down-payment on it without seeing it in person. We walked the city it is in on Google Earth and the beach towns near by but never went to see it first hand. Finally iin May of 2013 we were on the Amalfi coast on our honeymoon and met the realtor and made the 1.5 hour trip south to the small town of Velina. We saw it for the first time. It is VERY small but the views are to die for. No kitchen or closets which are normal in Europe. We loved it.

Over the next 6 months we had a kitchen installed, a bed and a table with chairs. We then went to stay in our place for the first time over Thanksgiving. We bought a love seat and wo chairs which can be used inside or taken out on to our deck to enjoy the views. Having wine and cheese out on the deck was what it was all about. We couldn’t wait to explore the area.

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Our beautiful new home

We had to get closing money from dollars to Euros and from our American bank account to an Italian one. At closing you need the equivalent here of a certified check (actually two – one to the people you are buying from and one to the person doing the closing and covering taxes etc.). This was quite a chore! First, as I have said in this BLOG, exchange rates were high when we bought. Banks tack on 4-10% extra on a transaction. If you are getting $1,000 to $2,000 for vacation it is bad but too bad. If you are moving $100,000 plus it really hurts. I investigated how to get around this. I found a company in the UK that lets you wire dollars to them (no bank fees at this end) and buys Euros for you. They deal in billions of Euros so they give you the World Bank Rates (no extra fees added on) for large sums of money. We did not yet have an Italian bank account because our country requires foreign banks to only open accounts for Americans if they are present. The UK firm held the money and we departed on our honeymoon to Italy.

We were scheduled to open an Italian bank account in Positano the second week of our trip. Then I would text the account number to the UK and our money (in Euros now) would be transferred. After meeting with the bank manager in Positano, he informed us that we can not open an account at his branch because we did not live in Positano. He suggested going to the branch near our new home in Agropoli (1.5 hours away). We were scheduled to go and see the new place on that Wednesday but closing was Saturday in Rome. Not much time for error. We went to Agropoli and had no problems opening an account. I wired the UK the account number and they transferred the money instantly. The catch is Italian banks don’t always deposit wired monies instantly. Thursday came and no money yet. Friday showed our money. So we did it with no room for error.

Now we had to go back to the branch in Positano (where we were staying) to the manager that had rejected us and get the required certified checks. To our amazement he did it quickly and with no problems. The next day Saturday we drove to Rome (about 3.5 hours). We checked into a hotel for one night (we had a morning flight back to the states on Sunday). At closing we met the owner and his family and the man doing the closing. Our realtor was our translator. All documents were in both Italian and English. The family we bought from was Gina Lollobrigida’s family (her cousin). The closing went well. We were asked questions and owner stipulated our parking spot and the fact that we could use the common property. Everything was written in the official document describing the property. Monies were paid and we were given a set of keys. After closing we all went to a bar for a coffee. È normale!

The saddest thing for us was getting on a plane back to the States with a set of keys to an Italian house we had never used.

There is no kitchen or furniture in our new place. It would be like camping out with a bathroom to stay like this (Jo is not a camper – She has always told be camping is staying in a Hilton with only one bathroom). So we look for a kitchen. Kitchens come in modular form with cabinets, sink, refrigerator, stove and cook top. You can also get a dish washer at the expense of cabinets. We decide on not getting a dishwasher. We did not like the kitchens in the other units of our place. Our condo manager (the owner’s daughter) helps us remotely. We look at kitchen places in Rome but delivery is way too expensive. Maria manages to find a wood cabinet (dark stain) kitchen with everything we want.

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We have a new kitchen

She negotiates a kitchen with a table and 6 chairs for the price of the kitchen. We then decide to get a bed (mattress and frame – Italians do not use a box spring) from the same place. They come and install the kitchen and setup our bed. We are not ready to come back to Velina without camping out.

We find online that our Home Land Security requires a form documenting any foreign deposits over $50,000. If your account had $50,000 or more, even for a day, you must declare it. This is NOT an IRS form. So I download the form and fill it out. The fines are huge if you are caught without doing this. We are now ready for our Thanksgiving in Velina Italy.

As we get familiar with our town, we keep staring at the views all around us. We look like tourists that have never seen a beach or mountains. The views are so spectacular here. The weather is tropical and always great. Some mornings we wake to see snow on the mountains around us. We are interested in buying some furniture to sit on in our unit. We want some that can be taken out on the deck as well as be inside. There are many furniture stores around us (called Mobili in Italian which literally means furnishings). We find a store with very interesting furniture next to our supermercato. It is closed but we window shop and make a note to return after 4 pm when everything reopens. This store has everything. In Italy they don’t like to turn the heat on in the winter. The manager of the store greets us (Buon Giorno) with a heavy coat on. It is actually much colder inside these thick walls than outside where it is mild. We look at bedroom sets as well but decide to buy these at a later time. We do find a wicker set that has two chairs, a table and a love seat. It’s a perfect size for our small apartment.

I ask the man if they take credit cards (carte di credito). But he says only cash (solo contanti). We have an Italian ATM card for our Italian Bank Account and we know there is an ATM in town. He loads the furniture onto his truck without any payment and follows us into town. We stop to get the cash and he continues to follow us up the hill to our place. He unloads all the furniture and carries it up to our unit refuting any help. He waits for us to arrange it and sit on it and smile. He then accepts the payment. Why are we so shocked when people act so kind?

After taking all the wrappings off the pillows and seat cushions, we arrange the furniture about 5 times. It fits perfect and looks great.

The Condo and the Mountain beyond

It provides us with ample seating inside to relax and when we take it outside we can have some wine and cheese while we take in the views. This is Italy! Life moves at a slower more enjoyable rate. We can feel the tensions drain off after a few days. We are Italians while we are here. We shop only for today and maybe tomorrow morning. We buy only what is grown or made fresh. Italians take a lot of pride in their food and will only buy what is made in Italy. This very small place seems adequate and almost spacious as we settle into Italian life. Life is good.

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The New Furniture

The furniture is portable so we can move it out onto our deck to enjoy the views.

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Categories: Amalfi Coast, Banking, Beaches, Campania, Casal Velino, Cash, Cilento, Closing a property in Italy, Europe, Food, General Travel, Italian, Italian Banks, Italy, Mountains, Owning a home in Italy, Shopping, Small Towns, Southern Italy, Traveling without a tour, Velina, World Bank Rates | Tags: , | 6 Comments

An EXPATs Banking Nightmare in Italy

My wife Jo Anne and I bought a home in Italy in 2013 and went through the experience of opening a bank account, transferring money into the account, dealing with the difference in the exchange rates and finally the closing meeting. When you’re buying something expensive like a property, exchange rates can quickly add up. An extra 10% or $10,000 on each hundred thousand dollars can significantly add to the cost of the property. Finding a way of exchanging dollars to euros inexpensively was a must.

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We chose a British firm that has offices in the United States, World First USA Inc. You can wire dollars to them and they then transfer them to euros and wire the euros to your Italian bank account. You can get a contract that states if the money arrives in a certain number of days this is how many euros you’ll get. We did this and received close to the world bank rate which is the cheapest you’re ever going to get.

Now we had euros to purchase our new home in our British temporary account.  We now needed to open an Italian bank account and then transfer those euros into it. We found a problem for US citizens that our homeland security requires foreign banks to not open an account for an US citizen unless they are present so passports and IDs can be checked to make sure it’s you. This was a real problem for us because we would have had to fly over to Italy to open an account and then fly back to the US to wire the money because in those days our bank would not allow international wires that were initiated remotely. This would have cost an extra $2,000 – $3,000 in airfare and hotels which was ridiculous!

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We then flew to Italy, opened the Italian bank account and then had the money wired into it just worked perfect for us. Opening this Italian account was no easy task. Our real estate broker had a meeting with an Italian bank, Banco di Napoli, set up to open an account while we were in Positano. When we got there we found the bank manager, Paolo. He told us that he had never opened a bank account for anyone that lived outside of the Positano area and we were two hours south of Positano.

Luckily on Wednesday, we were going to go see our new home with our real estate broker, but that would only be three days before closing. We went another branch of that bank about 20 minutes from our new home. Finally, we had an Italian bank account. I then texted the transfer company and ask them to wire the euros into the new account and they told us in Italy this can take anywhere from 2 to 3 days even though the wire goes in immediately.

On Thursday we check the account and see no money. Friday was the last day we would be able to get the money needed for settlement. We checked the account again on Friday and luckily, there it was. Now we went back to the bank that wouldn’t let us open an account in Positano to get two cashiers checks, one for the closing company and one for the owners that we were buying the property from.

On Saturday we drove up to Rome and checked into our hotel room for the evening. Our closing was later that afternoon. Closing went relatively easily. Everything is done written on a long piece of paper and translated from Italian to English. We were told that the Italian document is the official one if there’s a difference. Once the closing was over we celebrated it with a picture taken, see below, and everybody was happy. The owners of the condominium made their money and we got a new Italian condominium.

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One thing to remember is that things in Italy can take time and not everything happens on your schedule, so relax, try to get things accomplished but when they don’t happen, don’t get upset – just find another way.

– George

 

Categories: Banking, Europe, EXPAT, Italian Banks, Italian Facts, Italy, Italy BLOGs | Tags: , , , , | 3 Comments

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