if ( ! defined( 'ABSPATH' ) ) exit; Business properties! - Anyexpat

Business properties!

Hello guys and welcome back to your window on Italian mortgages’ world!

Today we write about very special requests that sometimes arrive to my contact box.

Foreign clients are more and more interested on buying some properties that could be destinated to create a business in Italy.

Well, it is not so easy the business in Italy but this is not my field!!

Clients quite often want to buy countryside houses to establish a B&B or just give new energy to an existing B&B, maybe using an international network that they have already.

Or they really like to buy a farm or a wine production estate to make some very good Italian wine.

Whatever is your goal, let’s say that getting a mortgage to purchase a property that is intended to be not only a great vacation house but also a basis of business is more difficult than usual.

This is because the lending bank will have to consider that on this special case the client is going to be subject to the result of that business and the bank usually does not want to be involved in more riskious activity.

Anyway, we are still having success also on this kind of application.

Quite often, the operation is made through an Italian company that will buy the house and run the business consequently.

This is the best way also for the bank.

What happens is that clients will be required to have, anyway ,personal incomes to be shown to the bank as eventual support for future mortgage payment (if the business will go badly); that is why it is quite impossible to accept requests from people who want to change completely their lives.

Banks hate changements, especially life changements because these represent the most riskious situation for them.

So, purchases to buy business properties can be accepted only if the client can still prove to have personal incomes.

Of course, you will be free to leave your country to stay in Italy and start a brand new activity but you will have to do it by yourself and not trying to receive help from banks.

Coming back to potential successful requests, the bank will evaluate the mortgage application with an analysis of personal position/incomes of the client and also (why not) with potentiality of the new business; so it will be much better if the business property is actually generating profits on some ways (of course, the bank knows that if the property is on sale very probably there will be some problem on the business but maybe there could be a real potentiality on it that the new client/owner can develop successfully).

It will be also better if the client has already experience on the future business because maybe is making the same in his country or because he has real good connections to show because of his actual job (which maybe is on another sector but can be considered as complementary).

The mortgage application will be initially approved on physical person under the condition that the client will establish a new Italian company to make the operation.

After this first personal approval, the bank will switch the approval to the new company.

On this way, the client does not run the risk to establish a company and then gets a refusal from the bank (with unuseful costs).

Waiting for our next discussion, I wish you good luck on your Italian property search! You could be the next one to make the best Italian wine!!

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