Borgo di Colleoli F.A.Q.
1. Can units be paid in Euros from an Italian
bank account?
Yes- absolutely. Prices are in Euros and Italian bank account is
the easiest way.
2. Is it possible to arrange financing for
buyers in Italy?
We don't suggest it. Dealing with Italian banks is extremely complicated
and expensive, because of bureaucracy and exorbitant costs. A recent research
report by consulting company Cap Gemini has calculated that Italian banks
charge some of the highest commissions world-wide.
3. What Facilities
are available?
There are 2 swimming pools at Borgo di Colleoli which all owners (The
Valley Apartments) get full use of. There are also pools at San Marco
and it is expected all villas at Sughera will have private pools –
designed to the specification of the owners. Click
here for information on golf and golf courses in Tuscany and their distances
from the properties.
4. Who
is guaranteeing the rental income and how will it be structured?
Hillmore Spa, one of our Italian subsidiaries will guarantee the rental
income. This is part of a larger rental plan with a worldwide luxury holiday
provider which we are happy to discuss with you and let you have sight
of but would rather it was not for public distribution due to confidentiality
issues.
The deal can be structured as required. As I mentioned
some of our current owners have different preferences but our standard
structure is to rent 46 weeks of the year, leaving 6 for own use and rental
is paid quarterly in arrears.
We also have a stand-alone division of our business, which drives the
rental business.
5. Who will manage the property and what are
the fees?
The property will be managed by Hillmore Spa (our Italian subsidiary)
and the fees will be set by an Italian management agent (whose role is
to protect minority interest on properties like this). The annual fee
will be set by agreement between Hillmore Spa and the agent and will be
broken into two parts a fixed charge and a usage charge. The usage charge
will be absorbed within the rental scheme and the rental payments quoted
are net of this offset.
6. What are the hidden costs
i.e stamp duty, government taxes etc?
The purchase has three elements – freehold property plus tax (10%)
plus notary fee (est €4,000).
There are two annual charges – a state charge which is set at a
very modest level (several hundred euro) and is like a ‘registration
tax’ and the annual dues which as noted above will be split as base
fixed costs (estimate £2,000 pa) and usage costs (estimated at €400
per week used).
The notary fee supersedes the need for any legal fees in the UK as they
transact for both the buyer and seller in Italy.
(In our experience we have had 1 buyer feel the need for additional legal
advice in the UK and that was obviously at their own expense.)
7. What happens after the
guaranteed rental runs out?
It is likely that the agreement can be reviewed and extended otherwise
the owner can choose to rent it out themselves (through normal rental
agencies), sell the asset or of course live in it as their holiday home!
Practically, at the end of the term the tour operator
will have established a route to market the area and a demand profile
– in all likelihood the desire to consume rental space will be higher
than it is currently and this will be offset by people deciding to make
more use of their apartments, which will shrink availability.
8. Reservation fee- who is
it made payable to? And can it be in sterling? When is it due?
Reservation Fees are payable to Craggenmore Brokerage Services Ltd and
yes they are quoted in sterling. It is due as soon as people want to reserve
the apartment for a 10 day period until the next deposit becomes payable.
As mentioned if you have clients who wish to pay the GBP500 to hold the
apartment until they go to view within 10 days we would have no problem
refunding it if they didn’t like what they saw. We are obviously
extremely confident that will not happen.
9. How
many units are in the developments?
San Marco - 54– All villas – 3/4/5 bedroom
Valley - 17 –1 bed – 2 (both sold) 2 bed - 15
10. Completion date?
Borgo – completed
San Marco – 3 years over 3 phases. Phase 1 could start anytime
Valley – early 2007
12. What is the tenure?
Freehold for all
13 . How are rental payments
made to owners?
Rental paid quarterly in arrears following completion of furnishing the
apartment to BDC standards.
14. What deposits are held
for rentals?
None – people prepay for rental
15. Rental Guarantee?
Borgo – The rental scheme is guaranteed for 3 years with 6 weeks
personal usage
Rental yields are: Studio – 8000 euro p/a, 1 bed – 12,000
euro p/a, 2 bed – 15,000 euro p/a
18. How close are shopping
transportation, entertainment, restaurants.
All the sites are within 20-25 minutes of the main Borgo di Colleoli property.
The village of Colleoli is approximately 30 minutes from both Florence
and Pisa along the Fi-Pi-Li (Their motorway!)
24. What deposit is required?
- Initial deposit of £10,000 required within 10-day option, Full
balance within 60 days. No refundable
- Then 20% after another 30 days (balance that makes it up to 20%) refundable
deposit
- Full balance 30 days later
25. Is the use of the management
team negotiable?
Not negotiable – we can manage property – don’t have
to rent out – condominium service - pays for shared facilities (if
we only manage the property and not rent out)
26. What does the service
charge include for the purchaser?
No service charge
Useage charge – changing beds – picking them up – again
optional
27. When is the Useage charge
reviewed? Annually
Q. Income tax? A.
Speak to their accountant
Q. Capital gains tax?
A. No capital gains if hold it more than 5 years – just property
tax (.4% - 0.7%) paid every year – speak to Rich
Q. Inheritance tax?
A. Take advice on it
Q. Stamp Duty –
10%
Q. Notary fee? A.
5000 euro
|
