Who's investing in real estate? An analysis of real estate auctions.

In recent times, real estate auctions have been in the midst of significant instability, affecting even participation, which has not always remained at the same level as in previous years. In many ways, it is not easy to envision the typical attendee of real estate auctions, especially in the present times and with the current financial situation. That is why the Association of Professional Executors of the Province of Padua (APEP) decided to profile the average auctioneer. The result revealed a predominantly male figure, not always young, therefore unable to obtain the additional benefits of buying a first home with a mortgage.

In the analysis of the information center AREP

which''covered a sample of 233 auctions held in Italy in the first half of 2023, a profile of the typical auction participant was found, predominantly male, representing about 72% of the cases. Furthermore, it is observed that the participation of individuals represents 76% of the total number of bidders. Meanwhile, participants acting on behalf of a company account for 1 out of 4 (24%). It should be noted that real estate auction is not only for buying but also for selling. However, there is still a perception that if a person decides to sell a house at auction, it means they have a problem. This is a misconception. More and more people and companies are opting to use auction to maximize the sale proceeds using the auction mechanism.

Therefore, in'. 'Italy's interest in real estate auctions is still driven by

almost for the majority of users, the desire to save money. As many as 49% want to buy their first home, saving as much as possible. Thus, in addition to meeting a real need, it improves the ability to save, which is a real "position-vigilante" in Italy.

Many'. 'young people at real estate auctions.

In addition to the predominance of males, the age of participants also tends to skew towards a certain age group. In fact, nearly half (47%) of participants are between the ages of 35 and 50, while young adults under 35 make up about 20% (one in five). But adults between the ages of 50 and 60 are 18%, and older adults over 60 make up just 15% of the sample.

It's unfortunate that there are so few young bidders at real estate auctions, especially given the opportunity to buy a home at auction. As the analysis notes, young people under 35 can receive incentives when buying their first home. At issue is the so-called tax credit for buying a first home before the age of 36, which was introduced by the Draghi government in''2021 through the Sostegni bis decree. Aimed at promoting the housing independence of young people, this government has confirmed the allocation of funds for this program for next year as well, subject to a number of key requirements on the part of the recipients.

Although this applies to the auction sale procedure, as the IRS notes regarding the question presented by the taxpayer, the exemption is valid and can also be used to purchase property at auction. However, many users are often unaware of this opportunity to purchase their first home. Especially young people: the APEP report indicates that only 30% of young people under 36 have actually applied for this benefit.

Missed opportunity to claim the benefit on''first home of their own.

Not only were there few young people taking part in the bidding process in the first half of the year, but there were also very few who applied for the First Home Housing Benefit before the age of 36. And that's a problem, given that it's not known whether there will still be an opportunity to claim it in future years after the last renewal. Furthermore, as the report notes, the majority of users participating in the bidding process "[...] take out mortgages with banks offering special financing plans." Bruno Salietti himself, president of APEP, emphasizes that too many young people do not use this tool and that they should, on the contrary, be aware of it.

"Nevertheless, few young people and joint-stock companies choose this remedy, and it is in these''Two categories of users need to do important education and awareness work, refuting some of the main stereotypes associated with the world of auctions,' says Bruno Salietti himself.