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Buying a 1 euro property in Italy? Too good to be true?

gryfny

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Why not? That's what I've been wondering when I came across an article on the subject recently. It happens once in a while that a municipality in some country (Spain or Italy usually) offers houses in an abandoned area for almost free. There's usually a catch, like that you have to move there as your primary residence and you have to fix it up. But still with the housing market going crazy over here (the Netherlands), this idea interests me. Currently I'm renting, and its about 40% of my total expenses. I can work from home, so that's no problem. Only real downside is moving away from a lively city and my friends. But I'll have enough money for regular visits because I save so much on rent.

Anyone on here experience with such a thing? I found this CNN article from 2 years ago that documents some people's experience. They do plan to use it only for a second holiday home tho.
 
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Odysseus M Jones

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alord

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I'm Italian, and most of these 1 euro properties are in the region where I come from.

The obvious catch is that these houses are in remote villages where you will be living with a bunch of old people.

Pros:
  • cost of living is very low
  • there are a few other foreigners that thought the same, and you can build a small community there
  • people are usually very welcoming in the South of Italy
  • you can eat very healthy food from the local markets for cheap
  • chance to enjoy a very quiet life
Cons:
  • You'll be living in villages that were left behind by the younger generations. There are no beaches close by. Just nice nature, a quiet life and the beautiful Italian lifestyle
  • There's low demand for these houses. After you've bought them, they'll likely decrease in value. In those villages there is nothing, people have no jobs besides traditional jobs like a butcher, teachers, lawyer and doctor.
  • To renovate these houses, you need at least a reasonable sum. As said, the value of the house will likely decrease because there is little to no demand.
  • Taxation is relatively high in Italy. Unless you're very wealth and can use one of the tax schemes (such as €100k flat tax if you move your residence there no matter how much you earn.)

Now is it completely a bad idea? Nope, some people love this kind of quiet place. But hey, if you want to live in Sicily or Italy, you could buy really nice houses already renovated for even 100k. I'm talking houses close to the beach, historical centers full of history, and actual cities that are alive (but still quiet) and where the prices will remain stable if not go up.

An example of such a place in Sicily is Siracusa (a place so beautiful that it was just recently the set of the new Indiana Jones movie). There are many others.
 

gryfny

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I'm Italian, and most of these 1 euro properties are in the region where I come from.

The obvious catch is that these houses are in remote villages where you will be living with a bunch of old people.

Pros:
  • cost of living is very low
  • there are a few other foreigners that thought the same, and you can build a small community there
  • people are usually very welcoming in the South of Italy
  • you can eat very healthy food from the local markets for cheap
  • chance to enjoy a very quiet life
Cons:
  • You'll be living in villages that were left behind by the younger generations. There are no beaches close by. Just nice nature, a quiet life and the beautiful Italian lifestyle
  • There's low demand for these houses. After you've bought them, they'll likely decrease in value. In those villages there is nothing, people have no jobs besides traditional jobs like a butcher, teachers, lawyer and doctor.
  • To renovate these houses, you need at least a reasonable sum. As said, the value of the house will likely decrease because there is little to no demand.
  • Taxation is relatively high in Italy. Unless you're very wealth and can use one of the tax schemes (such as €100k flat tax if you move your residence there no matter how much you earn.)

Now is it completely a bad idea? Nope, some people love this kind of quiet place. But hey, if you want to live in Sicily or Italy, you could buy really nice houses already renovated for even 100k. I'm talking houses close to the beach, historical centers full of history, and actual cities that are alive (but still quiet) and where the prices will remain stable if not go up.

An example of such a place in Sicily is Siracusa (a place so beautiful that it was just recently the set of the new Indiana Jones movie). There are many others.
Thanks for the detailed answer! I been to Sicily last month and I really liked it. I didn't visit Siracusa, but everyone I spoke to loved it.

Maybe it's nice one day when I retire. Not sure how wealth is taxed in Italy tho.
 
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Jobless

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There is too much media exposure to make that worthwhile. As I recall, villages that offer this 'opportunity' receive thousands of applications. This means you must convince them that you will settle permanently, open a local business there, renovate the place, etc.
 

MTF

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Renovation costs a lot, most of these villages aren't particularly attractive for living, the infrastructure might suck (no good Internet, nothing to do in the village or anywhere nearby), and even if you renovate the house, it's still an old poorly built house that will be miserably cold and dark in the winter.

I've spent more than a fair share of time in these "traditional" houses in various countries in the Mediterranean and they're always, without exception, unsuitable for a normal life unless you're a local used to living in what feels like a cave. I doubt the government would let you renovate the house to make it more livable (better insulation, large windows, etc.).

Can they be turned into short term rentals?

No, you're required to renovate them and live in them.
 
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G

Guest-5ty5s4

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Renovation costs a lot, most of these villages aren't particularly attractive for living, the infrastructure might suck (no good Internet, nothing to do in the village or anywhere nearby), and even if you renovate the house, it's still an old poorly built house that will be miserably cold and dark in the winter.

I've spent more than a fair share of time in these "traditional" houses in various countries in the Mediterranean and they're always, without exception, unsuitable for a normal life unless you're a local used to living in what feels like a cave. I doubt the government would let you renovate the house to make it more livable (better insulation, large windows, etc.).



No, you're required to renovate them and live in them.
How odd. They can’t even give them away yet they insist on keeping the law as is. Oh well.
 

BizyDad

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How odd. They can’t even give them away yet they insist on keeping the law as is. Oh well.
These aren't exactly tourist destinations. If there was any substantial market for short-term rentals in these villages, people would be in there using them as short-term rentals already...

"Everybody" is leaving these villages, except for the old folks who grew up there.

That's the problem the municipalities are trying to fix.

There's no law against people buying these homes at their fair market value and using them as short-term rentals. But if you want to get it basically for free, you have to be willing to invest your time and maybe money into them.
 
G

Guest-5ty5s4

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These aren't exactly tourist destinations. If there was any substantial market for short-term rentals in these villages, people would be in there using them as short-term rentals already...

"Everybody" is leaving these villages, except for the old folks who grew up there.

That's the problem the municipalities are trying to fix.

There's no law against people buying these homes at their fair market value and using them as short-term rentals. But if you want to get it basically for free, you have to be willing to invest your time and maybe money into them.
Regardless of use, it looks like people are not buying them - even for basically free. That's all I was saying.
 
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BizyDad

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Regardless of use, it looks like people are not buying them - even for basically free. That's all I was saying.
It is a shame, really. I've only been once, but that region of Italy is like going back in time. It is one of my favorite trips all time. I think more people should experience it.
 

Hadrian

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Looked into it with my Italian Graphic Designer about 2 years ago.. turned out to be too good to be true!
 

Devilery

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I hope it's okay to share a YouTube link here, but I believe this video features "one of these villages" or at least a close match to those where the 1 euro homes are located. They're in rural/remote areas, falling apart (no plumbing, roof fallen off, cracks in the walls), and there's really nothing to do there.
When I was reading about them, I found some villages where there were a few foreigners renovating and living in them, but most of the time, if you managed to get one, you would be the only one living on your street, and everything nearby you would look like out of a horror movie.
Though, some of the villages are in decent locations and might have more foreigners living there a few years later. Buyers also report to be renovating them frequently for less than $50,000, which's cool! I also read that some foreigners choose to buy not 1 but 5,000 euro homes because these are in better condition, there's old plumbing and the structural integrity is decent.
 
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Ing

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Buy and make bed and breakfast for motocycle enduro riders!
Full house all summer!
 

Matt_2190

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I agree with everything that has already been said.

Moreover, in these remote places internet connections are a serious problem. It is not uncommon to find houses that do not have a decent connection.

In addition, if you buy a house for a 1 euro, you still have to go through a public notary and pay property taxes, which are several thousand euros.

Also, if you renovate your house, you have to go through a hell of bureaucracy and taxes. Often owners, if they have to renovate a house, demolish it and rebuild it from scratch, because it is cheaper.
 

sam332

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I agree with everything that has already been said.

Moreover, in these remote places internet connections are a serious problem. It is not uncommon to find houses that do not have a decent connection.

In addition, if you buy a house for a 1 euro, you still have to go through a public notary and pay property taxes, which are several thousand euros.

Also, if you renovate your house, you have to go through a hell of bureaucracy and taxes. Often owners, if they have to renovate a house, demolish it and rebuild it from scratch, because it is cheaper.
Why not? That's what I've been wondering when I came across an article on the subject recently. It happens once in a while that a municipality in some country (Spain or Italy usually) offers houses in an abandoned area for almost free. There's usually a catch, like that you have to move there as your primary residence and you have to fix it up. But still with the housing market going crazy over here (the Netherlands), this idea interests me. Currently I'm renting, and its about 40% of my total expenses. I can work from home, so that's no problem. Only real downside is moving away from a lively city and my friends. But I'll have enough money for regular visits because I save so much on rent.

Anyone on here experience with such a thing? I found this CNN article from 2 years ago that documents some people's experience. They do plan to use it only for a second holiday home tho.
interesting that you're mentioning it. I was thinking a lot about it and even went to (northern) Italy twice for visiting some houses. You can actually find these in nice areas but the main catch why I didn't engage was that the transaction cost is about 10k for notary and all the paper work. So even if it sells for 1 € in the end you pay min. 10k for a few moldy stones en plus you commit to renovate and finish the project within 2 years. And as we know with the material costs hyperinflation and cost of work going through the roof I would buy something that doesnt need so much renovation and head ache.
 
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alord

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f you renovate your house, you have to go through a hell of bureaucracy and taxes. Often owners, if they have to renovate a house, demolish it an
True!

About the Internet connection not necessarily though, in Italy there's WiFi through fiber basically everywhere nowadays (also in quite remote places)
 

Matt_2190

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If anyone is interested, here is an article about this topic.


It specifies that the offer is usually to buy very old houses and sometimes it is necessary to become a resident.

There is also a list of municipalities where this offer is valid.
 

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