Yahoo Finance Italy is Selling Houses for 1 Euro — Is It A Good Idea to Buy One?
If packing up your life and making a fresh start abroad or owning a Mediterranean holiday home is a dream or yours, cheap housing is making it a bit more achievable in one country. Foreigners are flocking to buy old, inexpensive houses in Italy, thanks to initiatives offering houses for sale for €1.
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It seems preposterous that an Italian casa can be had for around $1.07, but it’s true, and many villages that have suffered depopulation are seeing a housing revival through these enterprising homebuying schemes.
However, although the €1 sale price is irresistible, there are rules governing buying properties that differ depending on the region or town are thinking about planting roots in and buying such dwellings comes with a number of expenses.
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Italian Homes for €1 — What you Need to Know
According to idealista, around 80% of buyers taking advantage of the €1 project in Italy are from the U.S., who have been slowly helping towns redevelop older vacant homes, stimulate the economy and help attract tourism by building B&Bs and hotels.
However, there are a couple of things you should know about buying a dirt cheap house in Italy. First, the “Case a 1 euro” project emerged from a need to repopulate villages that were becoming abandoned and its structures dilapidated. Although there are opportunities to invest in a town by buying holiday rentals or shops, speculative developing of multiple homes by one buyer is frowned upon and protected in some municipal tenders.
Second, and most important, there are a number of expenses you’ll have to pay, starting with a potentially large-scale renovation of the house. These aren’t turn-key properties, but rather homes in varying states of disrepair. If you are toying with the idea of buying a €1 as a retirement project or renovating it piece by piece when you’re in the area, think again.
Prospective buyers will need to consider the compulsory renovation after purchase conditions specific to the terms set by each village where the properties are being sold. For example, The Independent notes that if you want to buy a house in the popular Sicilian town of Mussomeli, you’ve got free rein to decorate the interior to your liking, but the exterior must stay loyal to the original build. Additionally, you must:
Pay all expenses for central to the deeds of sale (notary, registration, transfer fees).
Prepare the renovation project for the property within one year of purchase and obtain all the building and property permits required.
Start work on the property within two months of the building permit issue date.
Complete work within three years.
Make a nonrefundable “guarantee policy” deposit of €5,000 ($5,372), to ensure work is concluded within three years.
It should be noted that not all homes are available for €1. Some become bidding war properties if they are particularly popular, require less renovations or are situated in a desirable location.
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Is Buying a €1 Italian House Worth It?
Investing in a property at the symbolic cost of one euro and turning it into a permanent home or a small hotel after renovation could be a great choice for American travelers who are interested in a new cultural experience and life in Italy. Despite shouldering the many costs that come with buying a house in a different country, it can be relatively affordable and worth you time and money, especially if you’ve been bewildered about that escalating prices of homes stateside.
Like anywhere, if you can renovate the property yourself, you’ll end up saving thousands. Not knowing the language will be a hurdle, but renovation costs in Italy are typically cheaper than other countries and there is a “superbonus” tax incentive available for buyers that covers up to 110% of qualifying building costs, per The Independent.
However, despite the €1 price tag, this is still a house and one that requires substantial renovations and a lot of initial research into permits, costs, tax implications, residence and visiting visas and others. Speaking to Travel + Leisure in 2022, American Rubia Daniels stressed the importance of seeing the property in person too.
“Definitely don’t try to do it online — you need to be there to see it and experience the process to make sure you’re making a mindful decision,” said Daniels. “I wouldn’t do anything through the internet. You don’t want to get anything where the walls are buckled because that indicates a foundation issue,” according to Daniels.
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This article originally appeared on GOBankingRates.com: Italy is Selling Houses for 1 Euro — Is It A Good Idea to Buy One?
