Milan, only in the center it is cheaper to rent than to buy
And let’s get to the numbers, which confirm the old rule of physical investments: the more a property is worth, the less it returns. In Milan, the minimum gross rental yield is 3.9% in the historic center where, on average, a three-bedroom apartment is rented for 2,500 euros: yes, if we consider only the part of the center that goes from San Babila to via Manzoni as it passes through it would also reach 3,500 euros and more, but the sale prices are also at least 50% higher than the average for the area; the highest gross yield is obtained in Bisceglie, with 8.3%. But what is striking is that for a three-bedroom apartment the minimum cost exceeds 1,300 euros per month, a prohibitive barrier to entry for many. In the five most expensive areas of the Lombard capital, the rent is slightly less than the cost of the mortgage (maximum savings between Arco della Pace and via Mario Pagano, where renting saves 115 euros per month). In the rest of the city, the advantage of the mortgage becomes increasingly clear, until it exceeds 700 euros in Bisceglie.
Also read:
-Better the rent or the mortgage? Accounts in eight cities (by district)
The cases of Turin, Palermo, Genoa, Bologna and Florence
In Turin, only in the center rents exceed 1,000 euros per month, in other prestigious areas it ranges between 850 and 936 euros. In Falchera, 600 euros are enough. Returns range from 4.5% in Gran Madre to almost 9% in Borgo Vittoria, where choosing a mortgage guarantees the greatest savings in rent, almost 400 euros per month. As for the other cities, Palermo is characterized by absolutely low but high rents compared to the value of the houses, the yield never falls below 6% and reaches 8.6% in the Center, where with the mortgage you can save more from EUR 450. In the upper areas of Genoa, rent and fee are almost equivalent, in Bolzaneto the theoretical return exceeds 9%. In Bologna (rentals to university students) and Florence (short-term rentals to tourists) there is practically nothing below 1,000 euros. In the capital of Emilia, the yield goes from 5.6 to 7.3% and you can save up to 600 euros per month with the mortgage. In the Tuscan capital, returns range between 5 and 6% and rents reach 2,000 euros in the center. The mortgage costs 650 less.
Also read:
-Better the rent or the mortgage? Accounts in eight cities (by district)
