There are not enough statistics over time from which to draw a trend, but there is other useful data to help the investor - for instance, it is perhaps not surprising that 88% of all buyers want to be in the country, but it is important to note that half of those buyers want to be near a village. Also fundemental is the indication of size required. Three and four bedrooms are equally popular but five bedrooms are half as popular.

It would seem that the most poular combination is a 3-4 bedroom house in the countryside that requires restoration, has panoramic views  and more than 1 hectare of land. And if you can add an annex, space for a pool and proximity to a village, you’ve hit the spot.

To Restore or not to Restore Property in Le Marche

The choice as to whether to restore or to buy a building that has already been restored is very often based on insufficient or biased information. In this article we will provide the information, some limited to the market in Le Marche, that is vital to making an informed and rational decision. We also hope to provide a platform for an open discussion on this topic.

The elements that will be discussed are –

The cost of restoring compared with current values of restored houses.

The importance of the architect.

Controlling the building process from afar.

A summary of the pros and cons of restoring.

1. The Cost of Restoring Compared with Current Values of Restored Houses.

The average cost of a house in the countryside that needs complete restoration (substantial structural work, new services and all finishing work to a good standard) is a) €550/sqm (including purchase costs) when a minimum price tag of around €100.000.

The average cost of a complete restoration is b) €1200/sqm including tax and architect’s fees. For an example breakdown of costs see http://www.vinciproperties.com/market_information.htm#b1

Buying and restoring therefore costs a) + b) = €1750/sqm

The average cost of buying a ready restored house (with a better than average standard of finish) from a developer is €2200-2500/sqm. Whereas the average cost of buying a ready restored house from a private owner is €2000-2500/sqm (where the standard of finishing materials varies greatly).

Thus, clearly buying a ready restored house is more expensive than undertaking a restoration. The difference between the cost of restoration and the cost of a finished house, in other words the vendor’s profit, is €450-750/sqm in the case of a developer and €250-750/sqm in the case of a private vendor.

In the present economic climate, all the above mentioned costs are negotiable in more or less equal measure. Building companies and private vendors alike are giving discounts of around 15%.

2. The Importance of the Architect.

It is not difficult to understand how crucial to the successful outcome of a restoration the architect is when you consider what he or she is responsible for:

Design and planning

Recruiting the building company

Surveying

Project management

These four roles encompass just about all aspects of the restoration process and there is no doubt that finding a trustworthy and competent architect is essential to a smooth and, above all, cost efficient restoration process. The architect should be seen as auditor and first line of control as well as designer of the dream home.

The question is, given the importance of the architect, is the risk of not finding the right one too great a risk to take? The answer would be yes if it were not for the fact that there are some safeguards already in place which any owner can take advantage of.

Firstly, there exists an official regional price list (il Prezziario Regionale http://www.operepubbliche.marche.it/defaultprezz.asp?quale=generale)  which is updated every year or so depending on global material and local labour costs. It therefore follows that a detailed set of plans and the consequent works specification will give an accurate end cost for the entire restoration. This in turn then provides a bench mark for costing plans, for judging quotations from building companies and for surveying.

Secondly, there are laws which stipulate technical build standards, covering all aspects of the structure and the services, that have to be met. If these standards are not met then the local Comune will not issue a “habitability certificate” (il Certificate di Abiltabilità) and the house cannot be legally lived in.

Thirdly, the architect is legally responsible for all technical decisions that are made and remains so for 10 years after the work has been terminated.

These safeguards do not entirely make up for the lack of an honest and competent architect but they do go a long way to helping control the main elements of the process and to determining responsibility were problems to arise.

For each horror story of a restoration gone wrong, there are many of successful restorations and happy owners. The trick is to tap into the network of owners that have already been through the process before and ask for recommendations of tried and tested professionals. This, combined with the safeguards mentioned in this short chapter and the owner’s prying eye, will make the restoration just about as easy as it is anywhere else.

3. Controlling the Building Process from Afar

Quite apart from comunicating regulalry with the architect (see above), there are other ways of keeping an eye on progress, making sure that costs are controlled and that important decisions are not being made in the owner’s absence.

Firstly, there are a number of project management companies, such as Treehouseitaly, that will not only manage the restoration process on your behalf, but that will also convey in precise terms the essence of what the owner is aiming at - this can be very difficult to do without fluent Italian. A project management company will be at pains to make sure that the owner is kept abreast of developments and that tiresome problems are dealt with so that during a visit the owner can use his time efficiently.

Secondly, there is an increasing number of building companies that employ digital technology to keep clients informed of progress. Take for example Panichi Srl, a building company from Ascoli. On their web site there is a page, reportage, dedicated to each building site with options to see progress by clicking on any specified day or week. To take things a little further, Panichi Srl will also do a live webcam report whilst walking around the site. This means that individual problems can be handled without interupting work in progress.

Clearly, the owner’s presence on site is essential when the restoration is in it’s final phase and questions of style and taste of finish arise. But with a good team of professionals much of the restoration process can move forward without owner intervention, especially in the early stages where only good technical knowledge will allow any sort of worthwhile contribution - how many owners, for example, know enough about underpinning to be able to judge work well done or not?

Finally ofcourse, owner control is underpinned in the contract agreed with the building company. A well written contract will give the owner financial leverage (no payment until work is satisfactorily complete) and will include a clause on procedure in case of unforeseen issues.

Fractional Ownership has been around a long time, especially in the USA where it is a multi-billion dollar industry, but most people in Europe are just becoming familiar with this approach to buying and owning property. It is a very simple and cost effective way of owning a second home without all the hassle and cost of running and maintaining it.

This method of ownership allows the consumer to buy a part share in an asset (the property) that would otherwise be outside their budget.

Buying a fantastic 4 bedroom, renovated, fully furnished farmhouse with a large swimming pool, tennis court, vineyard and magnificent views, in Italy, is out of most people’s reach but buying just a few weeks in that property suddenly makes it much more accessible!

You are able to buy the number of weeks you will actually use annually, not have a house that is likely to sit empty for most of the year. Your budget goes so much further when buying through Fractional Ownership, and you only pay your portion of the running costs while having someone else oversee the maintenance and management of the property. The headaches of buying and owning a second home outright are removed. You get all the enjoyment of owning your own second home without all the hassle.

Some often used phrases to describe fractional ownership are ‘multiple parties owning an asset’ or ‘shared ownership of an asset in perpetuity’. This differs from ‘time share’ in that the asset is actually owned by you, rather than having just a right to use time in a development for a limited period. You have the right to sell or gift your share in a fractional ownership development and it could appreciate over time. A share can be purchased in the name of an individual, jointly, through a company or a trust structure.

There are a number of ways of structuring a fractional ownership development; one method is to have a UK based company own the property. There are 52 shares corresponding to the number of weeks available. Clients can buy as many shares as they wish and time will then be allocated in the property to correspond to the shares purchased.  In simple terms ‘the company owns the property, the shareholders own the company’. By structuring this way you are able to avoid the normal legal and tax issues associated with purchasing a property outright in Italy. Appassionata have handled all of these complexities and costs when originally purchasing the property through the UK Company.

To ensure that all owners get equal access and use of the properties throughout the years of ownership there is a Rotating Residency Calendar (RRC). This calendar will move your weeks each year so that you will enjoy all the seasons. The calendar is published in advance and weeks can be swapped between owners. Owners who purchase 3 or more weeks of ownership will be able to link two of those weeks together on the same rotating basis. This is the fairest way of assigning weeks and the starting point will be allocated on a first come first served basis. Two weeks of the year will be held in ownership by the developing company for maintenance purposes and where possible to assist owners to swop weeks.

The properties will be fully furnished to a very high standard, as you would your own home, they will not look like holiday rentals. The aim is to attract an affluent, aspirational customer who wants to share in something they cannot buy outright. To be able to say ‘I own a country house in Italy with a swimming pool, tennis court and its own vineyard’ is true, whether you own one or more weeks.

Finding an amazing location is also part of the development process. Le Marche is situated on the east coast forming the calf of Italy. Set against a mountain backdrop with a picturesque landscape of vineyards and olive groves dotted with small farms and medieval hill top villages. There is a wonderful coastline with lovely sandy beaches only 15 minutes drive away. This is authentic Italy, untouched by mass tourism and extremely welcoming to foreigners.

The first project will  be launched in the spring of 2009.

To further explore the opportunity of fractional ownership please conatct David Parish at david@vinciproperties.com

The current situation.

To most foreign purchasers, the credit crunch and all the consequences it has had on the economy has meant that the best policy is to wait and see what happens to the market and personal circumstances before buying. The result has been a drastic reduction in the number of foreigners currently viewing or buying. In particular, the British, who in the last few years have made up the lion’s share of the buyers, have almost completely vanished. There are some prospective buyers from the eurozone still looking, although numbers are down by about 50%. Interestingly, many agencies are noting a small increase in the number of non local Italians looking for a bargain.

To most vendors, the crisis has not had such an effect that they are forced to sell at rock bottom prices, firstly because they, like most Italians, are not heavily leveraged and secondly because selling the ruin is simply an option rather than a necessary step on the property ladder. There has infact been very little evidence of a drop in advertised prices.

Generally speaking then, despite demand collapsing, house prices have not followed. The question is - where are the good opportunities?

The most obvious bargain is to be had when buying from British owners of restored houses. Desperation to sell combined with a particluarly weak pound have brought prices down by about 20-30% and may go further. Be warned however - many second home owners carried out minimal restoration work on the basis that they would “make do” for a couple of weeks each Summer. It is essential that buyers fully understand the condition of the house they intend to buy as costs to repair shoddy restoration work can quite easily overshadow the gain made on a seemingly good price.

Less obvious is the bargain to be had when buying from those Italians that need cash for one reason or another. So as not to lose face, many local vendors will not publish a price decrease but, having noticed a dearth of foreigners in recent months, will negotiate quite substantial reductions. Local agencies say that 15% drop can be obtained. In this case, the trick is to find an agency that knows where the opportunity exists.

Investment in the Region

They say that a recession is a good time to invest and this cerainly seems to be the case in Le Marche.

An international group based in Milan is finalising its plans for a €150 milion euro investment in 3 championship standard golf resorts. The resorts will be spread throughout the region and will combine what the group has termed as “Heritage and Tourism”.

The idea is that the resorts will revive the areas they will be in by concentrating as much on social issues, restoring existing buildings and encouraging local farming, as providing high standard golf courses for tourists.

The first resort,called La Rocca di Montevarmine, will be near Carassai in the province of Ascoli Piceno and building will start before the Summer.

There is  no doubt that this investment will have a huge effect on holiday home property prices. If the resorts go as planned, Le Marche will shotly be the number one region for golf in Italy.

After the vintage when the grapes have been pressed a residue, called most, is used for various delicious products, such as pan di mosto (bread made of most, flour, yeast and aniseed). Sapa is made of the most of blue grapes and is used in the same way as balsamic vinegar.

Autumn is also the time for chestnuts and walnuts. The Marchigiani are experts in putting these products to good use. For example, sughetti is a cake made of walnuts and castagnata is a cake made of chestnuts. Every weekend you can find a sagra in a local community dedicated to one of these products.

The truffle is probably the most prestigious delicacy this time of year. Two towns, famous for their truffles, are Acqualagna, in the North and Amandola, in the South of Le Marche. Important fairs are dedicated to this exquisite product. In Acqualagna, the National Fair of the White Truffle this year will take place on 26 October, 1, 2, 8 and 9 November. More information can be found on http://www.comune.acqualagna.ps.it/index.php?id=11140 .

In Amandola, their fair is called ‘Diamanti a tavola’, and rightly so. This year it will take place from 7-9 November. Everything you always wanted to know about truffles is here, from information to actually tasting truffle dishes. More information can be found on http://www.prolocoamandola.org/programma_diamanti_a_tavola.htm.

In the province of Macerata, the agriturismo I Gelsi organised a 5 course dinner with the truffle theme. Each course had either white or black truffle. Here are some pictures, since they tell more than a thousand words:

Crema di ceci con tartufo nero

This cream of chick peas was the second starter after a delicious salade with white truffles. Although chick peas are generally considered quite heavy, this cream turned out to be very light.

Tagliatelle con tartufo bianco

On its own this dish would have been sufficient to create a feeling of elation. In all its simplicity, it’s only pasta, olive oil and white truffle, the taste is absolutely heavenly.

Usually, Italy is a tourist destination during summer. However, autumn offers a wide variety of culinary wealth and wonderful views because of the beautiful colours. So come to Le Marche, look around and taste the autumn flavours.

As in all of the Italian penninsula, the more local you eat, the more art you can find. Here in Le Marche, the cuisine is quite different in the micro regional sense, particularly between the more experimental and modern touches apparent in the coastal cuisine versus the neoclassical cooking of the interior Apennines. My faves start on the southern coast, where several towns house nearly all of the great restaurants.

San Benedetto del Tronto

One of the most enticing things along the entire Costa Marchigiana is the offering of what is one of my favorite meal starters, raw or marinated seafood. The raw bounty of the Adriatic is well represented on many menus, particularly at Messer Chichibio (via Tiepolo 5 …tel 0735584001). Do not let the decor keep you away; the food is really good here. I love the marinated tuna with wild fennel, the great pastas, and the fact that the secondi, whether grilled or sautéed, often come with contorni and the odd vinaigrette. On the Piazza Nardone, number 8, is Ristorante Roma, a classic since 1948, where, apart from the sushi rice on one appetizer, I loved nearly everything. In particular, I loved the maccheroncini with cuttlefish and the mind bending eggplant involtino with monkfish and basil. They also served me a wacky dessert wine called visciolato, a kind of a cherry infusion that paired beautifully with a prickly pear sorbetto.

Grottamare

Up the coast a touch is the town of Grottamare where Lacche (via Procida, 1 tel…0735582728), is right on the lungomare and serves simple classic seafood at fair prices. Up the hill, a bit off of the tourist path, is Osteria dell’Arancio (piazza Peretti tel…0735631059), where they offer a killer prix-fixe menu for about 35 euro that may begin with a combo of local salumi, alici marinati, and some great takes on vegetables; followed by simple pasta and a choice of the main course of the day, which can include fish, guinea hen, or goose or other game. The meal finishes with delicious desserts.

Senigallia

Up past the not-so-pretty port town of Ancona is another treasure of a town, Senigallia. The guidebooks rave about La Madonnina del Pescatore, but I did not enjoy my experience there. I loved Al Cuoco di Bordo (Dante Aligheri 94 tel… 0717929661), where the verbal menu changes daily and always includes some interesting crudo, spectacular pastas like black spaghetti alla chitarra with squash blossoms and tiny shrimp, or a surprising orecchiette with clams and sea beans, or a great salt crusted bass. A couple of kilometers to the north is a pretty special country house, hotel and restaurant called Strada della Marina in a town called Scapezzano (tel… 0716608633). The rooms are a good deal and the food is definitely worth an overnight stay. My most recent meal started with a classic octopus salad with waxy potatoes, then went into a poetic gnocchi with a bug like shellfish called cannocchie cooked in a light tomato sauce that sang the song of sirens. The secondo sealed the deal; a monkfish in a red wine broth with snails and tiny trumpet mushrooms that was matched brilliantly with a young rosso piceno. There is a separate cheese tasting room for fanatics and a killer cellar to run up the check if you so desire.

Serrugarina

Further north is truffle country, particularly white truffle country, as well as the zona di produzione di prosciutto carpegna and the cooking matches the ingredients. A place I did not want to like but could not resist is called Symposium Quattro Stagioni, in Serrungarina (tel…. 0721898320). Pricey and tiny at 36 seats, you definitely need to call in advance and bring plenty of money. The 5 menus are at least 110 euros each plus wine, and you will want wine. There are the oddities like foie gras, but the vast basis of the menus is local with a capital L. I still dream of a meal that started with a simple lentil soup with breast of thrush and truffles, followed by a dish of potato pappardelle with game bird ragù and lemon thyme, continued on with wild boar with an ethereal potato and celery puree, then a taste of some pecorino that had been buried a couple of months in a divine ditch, and finished with a cool zabaglione on a piece of bitter chocolate. After a meal here, spend a couple of days on the prosciutto carpegna diet at an osteria called L’Angolo Divino (via Sant’Andrea 12 tel…0722327559) in Urbino and your wallet may heal.

When we decided to move to Le Marche to start a new life as a real estate agent we did what we were supposed to do. First we enrolled at a training centre to follow a course for real estate agent. The course comprised the following subjects: tax law, civil law, legislation regarding the real estate business, economics and mortgages, planning permission and surveys. After that we had to take two written exams and one oral exam in Italian covering the subjects mentioned before. After we had passed the exam we could officially register as real estate agents (nr 874 and 875 of the Ruolo at the Chamber of Commerce of Macerata).

Doing the course we realised how important it is to have done so, because now we can answer all the questions our clients may have. As qualified agents we feel that we can provide the best service possible to our clients.

Carlien and André van Lieshout