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lnicol01

I Need All Your Expertise And Advise.....

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Hello all,

My dad owns and lives in a 2 beds apartment on the south coast near Napoli in Italy.

He was brought up there - his parents bought it over 70 years ago. He was telling me that similar properties in the same road have sold for over 300,000 Euro ( 10 years ago when I was still living there, it was not worth more than the equivalent of £ 20,000).

This is the dilemma, he is thinking to sell it to cash in, while the property madness bug is still in full swing over there.

He has asked me if I can help him with some money to buy a much smaller flat in a less popular location so that he can sell the bigger flat so he can repay me back straight away.

My main worry is that if I lend him all the saving that my husband and I have been saving for the past 7 years and then the property market crashes in italy just before he can sell his family place, we will scapper any possible chance to ever own our home here.

My dads reckons that he needs cash in his hand to buy another place there as everything seems to sell like hot cake - it is not like here that you pay for your next house only when you get the money from your current place.

I fully trust my dad with my savings, but I am not sure about the property market trends on the continent.

Here is pretty evident that stagnation/recession is in full course ( if we ignore all the spins), but my questions are:

how much ahead is Britain compared to Europe?

is it a safe move for me helping my dad now?

how higher can properties can still go in italy before the big crunch?

and when it becomes common knowledge that we are going to have a massive correction here - ( which i believe it's already happening) will it then affect the property markets globally?

All your help and advise will be greatly appreciated

Ciao

Luisa

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Hi

I know nothing about Italy's property market, but i'm sure it is possible to rent a place short term. If he can't buy and sell at the sale time (like here) he can sell to rent, then buy again.

Look at how many people got caught with a bridging loan back in the 90s, they all thought they couldn't lose!

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Guest X-QUORK

I agree with Jason, tell your father to rent for a while until he can find the right place to buy. It takes all the risk out of the situation at very little extra cost.

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Golden Rule

Never mix business with Family

If it goes wrong, then it is very hard as its family and the grudge lasts a lifetime. Just dont put yourself in the firing line in the first place. If he is a good father, as no doubt he is then he will fully understand.

I dont quite understand why he cannot get a buyer on his current property, then do a simultaneous purchase just like everyone else.

Secondly, interest rates are cheap in Italy, so he could raise a loan secured on his current property to complete a purchase and repay the loan when his current property is sold.

Although he is your Father, and no doubt you love him dearly. Your first loyalty is now to your own family, that is your husband and your children if you have any now, or the children you are yet to have.

Imagine your position with your husband if for one reason or another your father could not repay the money, the effect it would have on your relationship with your husband may well be truly dire.

So, in Summary your Father can have what he wants but he will either have to rent short term, or get a loan from a bank.

Good Luck in whatever descision you make.

BTW I speak from experience whereby my Brother lent a member of my family 150k for them to buy a third property to renovate with repayment to come in December 2005, Guess what they have yet to repay due to unforseen difficulties.

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Thank you very much for all your thoughts -

You have given me few points to consider, the renting solution for my dad is probably the best one, i would not even mind to acutally helping him to pay the rent for few months until he sells his flat.

Laurejon, you are definitely right, business and family should never mix and I think he will understand if I explain how important is for me and my husband to own our own place - one day....

The reason why he thinks he cannot have a simultaneos transactions is because, the law of the jungle reigns there, if you don't commit on the spot with cash, someone else is ready behind the door. It is utterly and pathetically ridiculous!

In Italy the casualties will be even more dramatic than here because they have never seen such phenomenon before and therefore they dont have hystorical figures to compare with.

All my friends swear their lives that the prices will only go up and therefore they have the hugest loans and debts

(considering also that their wages are averagly a third of what we have in this country)

I sent them an italian version of this website ( google language page virtually translates the whole site in matter of seconds in any other languages too), but they - of course - think that my head needs to be checked as how can this wealth can possibly stop? It 's pure Heresy for them! Excommunication, I know exactly how Galileo must have felt.

This site is the only safe place in the world!

Cheerio to all

Luisa

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Hello all,

My dad owns and lives in a 2 beds apartment on the south coast near Napoli in Italy.

He was brought up there - his parents bought it over 70 years ago. He was telling me that similar properties in the same road have sold for over 300,000 Euro ( 10 years ago when I was still living there, it was not worth more than the equivalent of £ 20,000).

This is the dilemma, he is thinking to sell it to cash in, while the property madness bug is still in full swing over there.

He has asked me if I can help him with some money to buy a much smaller flat in a less popular location so that he can sell the bigger flat so he can repay me back straight away.

My main worry is that if I lend him all the saving that my husband and I have been saving for the past 7 years and then the property market crashes in italy just before he can sell his family place, we will scapper any possible chance to ever own our home here.

My dads reckons that he needs cash in his hand to buy another place there as everything seems to sell like hot cake - it is not like here that you pay for your next house only when you get the money from your current place.

I fully trust my dad with my savings, but I am not sure about the property market trends on the continent.

Here is pretty evident that stagnation/recession is in full course ( if we ignore all the spins), but my questions are:

how much ahead is Britain compared to Europe?

is it a safe move for me helping my dad now?

how higher can properties can still go in italy before the big crunch?

and when it becomes common knowledge that we are going to have a massive correction here - ( which i believe it's already happening) will it then affect the property markets globally?

All your help and advise will be greatly appreciated

Ciao

Luisa

Lend him the money. He is family, and would do it for you if the boot were on the other foot.

Prices only go up. :ph34r:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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