Palazzo Lillo is a historic Palazzo, in good structural condition, with a wealth of original features, including high, star vaulted, ceilings, and original floors. Covering 300 sqm (3229 sq feet) excluding outdoor space, the first floor will provide a four-bedroom, four-bathroom apartment and a 2 bed 2 bath, both of which will have separate access and their own outdoor space, but which can also be combined. A further 86 sqm provides a storage area, garage(for one car) and lift
The property ticks all the boxes, original features, outside space, and a location in a beautiful street, with good restaurants, cafes and shops nearby, in the historic centre of Galatina. Unusually, it will have lift access and a garage, both of which are very desirable when parking is difficult and grand historic palazzos have a lot of stairs! Subject to planning permission it will also have a small pool on the roof terrace. Total square meterage including lift and parking space and a large storage room is 386 sqm. I am very excited about this one – it has taken me over a year to find the perfect property.
The property will be bought, unrestored, for 270,000 which is under the market value. We have a binding preliminary purchase contract and have paid a 30,000 deposit – the completion date for the purchase is July 31st. After restoration the property will be worth 965,000 – 1,200,000, based on estate agency valuations and comparables – more if it has a pool.
We have drawn up plans for the restoration and obtained quotes for the work. When the restoration is completed and the Palazzo is furnished and equipped to a very high standard it will be sold as a fractional ownership property. Owners will have a share of the freehold of the property and from 28 days usage a year. The beauty of this property is that, as it can be used as two independent properties, there is also the option to use one and derive a rental income from the other. So for example a couple with children or a couple of friends could use the smaller apartment one visit, and use the whole thing for a family gathering or celebration the next. There will be a management company who will look after the property and take bookings from owners as well as look after holiday rentals when no owners are using the property, or only using one apartment. Each owner will have a lockable storage space for stuff they want to keep at the Palazzo.
Owners can plan ahead as much or as little as they want to, although high season weeks will be shared out equally as they are the most lucrative from a rental perspective. Different dates have a points value though so owners can pick and choose when they want to come and for how long.
Running and maintenance costs are shared between owners making this a cost effective way of owning a luxury property.
Running costs will, in any case, be reduced as we will have solar power and a state of the art heating/cooling system.
So where does the investment side come in?
We have investors at the moment who are simply putting money in for a return of 15% in 18 months (minimum investment €45,000). They are not interested in keeping a share of the property. This also works for potential owners as well though, or for people wanting somewhere to stay while they search for property or decide whether they want to relocate to the area. In either case we guarantee to buy shares back 18 months after we purchase the property should anyone change their mind or not like the finished result. At the moment owners would be buying a share at 15% less than it will cost them at the end and Puglia explorers would have almost free accommodation (running costs are shared between owners) and a return of 15% on their investment. This return will decrease to 10% once work is well underway, it is only 15% for people joining the project at this stage.
We are running viewing trips in late June and early July (walkaround videos available on request) and also hosting some question and answer sessions over the next few weeks, although I am also happy to talk to people individually. Do email me on firstname.lastname@example.org or send me a whatsapp message on +39 3917982054 if you would like further information.