The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

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

Accelerate wealth. Build a business that pays freedom. Join more than 70,000 entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Join the INSIDERS.

gryfny

Bronze Contributor
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Jun 11, 2019
191
260
168
Europe
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.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

alord

Contributor
FASTLANE INSIDER
Read Millionaire Fastlane!
Speedway Pass
Jun 8, 2019
87
89
124
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

Bronze Contributor
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Jun 11, 2019
191
260
168
Europe
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.
 

Eudaimonium

Contributor
Jun 8, 2017
77
85
115
Germany
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.
 

thechosen1

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Aug 25, 2020
1,912
3,675
863
Antarctica
Can they be turned into short term rentals?
 

MTF

Never give up
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
May 1, 2011
4,843
23,425
4,304
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.
 

thechosen1

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Aug 25, 2020
1,912
3,675
863
Antarctica
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

My 1st biz sold paper planes. It folded...
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Oct 7, 2019
1,210
3,904
868
Phoenix AZ
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.
 

thechosen1

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Aug 25, 2020
1,912
3,675
863
Antarctica
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.
 

BizyDad

My 1st biz sold paper planes. It folded...
FASTLANE INSIDER
Read Millionaire Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Oct 7, 2019
1,210
3,904
868
Phoenix AZ
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.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Hadrian

Celtic Whispers
FASTLANE INSIDER
Read Rat-Race Escape!
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Oct 8, 2017
392
514
258
Dublin, Ireland
Looked into it with my Italian Graphic Designer about 2 years ago.. turned out to be too good to be true!
 

Devilery

Bronze Contributor
Speedway Pass
Feb 11, 2019
87
136
129
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.
 

Ing

Silver Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Millionaire Fastlane!
Read Unscripted!
Speedway Pass
Jun 8, 2019
1,006
989
301
56
Bavaria
Buy and make bed and breakfast for motocycle enduro riders!
Full house all summer!
 

Sponsored Offers

  • Sticky
MARKETPLACE  NEW: The Best School for Going Fastlane (50% Off Deal Now On)
Hi Rob, I've sent you a PM as I’m trying to join since midweek. Cheers
  • Sticky
MARKETPLACE  Freelance University: Solve Every Freelance Problem (Especially on Upwork)
FU. 4 DAYS. 50% OFF BLACK FRIDAY SALE! If you're an Upwork freelancer, you'd be a fool not to...
  • Sticky
MARKETPLACE  You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
One year ago, I was just your average software developer who always consumed content about...
  • Sticky
MARKETPLACE  For Sale: Food Brand with 4 Years of Happy Customers in a Fast-Growing Niche
So to get certified, it cost a fortune? How much exactly? That sucks that these "health...
MARKETPLACE  Fox Web School "Legend" Group Coaching Program 2021
Fox's Web School helps you learn a specialized skill which you can use to get to Fastlane. It's...
MARKETPLACE  Not sure how to start? This free book will teach you how to build a successful web design business
Hi Fox. Starting the book and got through the introduction. Had a conversation with Andy Black...


Don't like ads? Remove them while supporting the forum. Subscribe.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom