The Italian government unveiled a multibillion-euro national housing plan for low-income households and this is expected to boost the economy after almost a decade of low growth.
The Finance Minister Giulio Tremonti has said that the plan involves the construction of about 20,000 new homes in the next few years. Government has decided to spend € 7bn to build the new housing units for low-income families, with rents as low as € 300 for about 50m² of space. The plan is to help the consumers who are struggling to cope with inflation at six-year high and rising mortgage rates as their spending power drives the economy.
Prime Minister Berlusconi's new reforms to get rid of the local property tax on first homes, offer to freeze mortgage payments for homeowners at risk of non-payment and also the assurance to cut the main property tax in Italy could make an Italian investment highly lucrative. Tremonti said the government is likely to tax more of the profits of oil companies, hailed as "Robin Hood" tax, because the proceeds are used towards social-welfare spending.
Foreign Property Buyer has stated that the government plans and tax reforms could lead to more interest in the country's housing market. The recent changes to the tax regime effectively reducing the price of property, it could be an ideal place in which to make a purchase. The Italian government had legislated laws to prevent overdevelopment, therefore preserving the factors that attract visitors and drive the property market.
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