Have you ever fantasized about owning a vacation home in Italy that you can escape to when life gets too stressful in the U.S.? Imagine how much more appealing this scenario is when the home costs just $1. No, this isn’t some internet scam concocted by a fake prince. You can actually buy $1 homes in Italy, with a few stipulations
Many struggling towns throughout Italy are offering investors the opportunity to buy homes for just $1. For the cost of a Dollar Tree trinket, you could be the proud new owner of a villa in the Italian countryside. Sounds like a no-brainer, right? Well, not entirely…
Story Behind $1 Homes in Italy
Once-thriving villages like Sambuco have seen a mass exodus of residents who left in search of a more viable life in the city or abroad. Their properties were abandoned, the economy suffered, and local leaders decided the best way to pump life back into these areas was to offer up the abandoned houses for a $1.
What’s the Catch?
The catch is that a $1 home in Italy cost more than $1. The property has to be renovated within a specified period of time. Buyers are required to spend at least 20,000 Euros on renovations. That could be a bargain on a villa, but if you’re renovating a tiny 1-bedroom apartment, it’s quite a lot.
It’s also important to note that you can’t outright buy a house for $1. You’re entering an auction bit and $1 is simply the starting bid. While it may be possible to end up paying just $1 for your Italian country home, demand has skyrocketed thanks to vast media coverage over the last year. That will likely drive up the prices on most listings.
Don’t Forget About the Deposit
Are you ready to submit a $1 wire transfer and secure your Italian villa? Well, you need to add another 5,000 Euro to that sum, because that’s the amount you need to “secure your bid.” Plus a 25 Euro administrative fee. This deposit is good for a bid on up to two properties: Your main property and a second choice, in case the first bid isn’t successful.
Once your bid is approved the 5,000 Euros along with an additional 15,000 Euros will be held in escrow until after you make the necessary improvements to the property. Since you don’t get that money back until after renovations are complete, you need a total of 40,000 Euros (or $45,000) to undertake this project.
If your bid is rejected, your 5,000 Euro deposit will be returned to you. In theory. But what’s the recourse if some corrupt official decides to pocket the money? Or even worse, if you’ve got incompetent bureaucrats who are just too lazy to follow through on their jobs. Maybe I’ve spent too much time at the DMV, but these are things to think about.
How to Find a $1 Home in Italy
If all of that sounds fine and dandy, then you can purchase a $1 house by visiting the city website and checking for listings. If properties are still available, you can download the PDF application form and submit it via email. Below are a few websites you can browse to find homes for $1 in Italy:
To ensure you don’t miss out on the latest firesale, consider setting a Google Alert for “$1 houses in Italy.” Other struggling countries, like Greece, have also offered these discounted properties before. I would widen the search to “$1 houses in Europe.”
Once you submit an application, you will receive email instructions to wire your 5,000 Euro deposit. If your bid goes through successfully, you’ll put the additional 15,000 Euro into an escrow account until the renovations are complete.
If you’re unnerved by the idea of buying a home in a foreign country without setting foot on it, there is another option. You can simply fly to Italy, meet with local real estate agents who specialize in $1 properties, and hand-pick your property. That’s probably the best way to reduce risk and make sure you get your money’s worth.
Should You Buy a $1 Home in Italy?
While the process for buying a $1 home in Italy is clearly outlined, it isn’t that simple. For starters, some of the websites and paperwork are completely in Italian. Sure, you can use Google Translate to get everything in English, but some of the translations end up very unclear.
The city of Sambuca made it easy by providing English application forms, but I’ve come across cities doing this that published everything (website and paperwork) completely in Italian. And when I did manage to submit an application, I got a response back…in Italian! So be prepared for that.
The last thing you want to do is wire 5,000 Euros to a government office in another county, fill out the paperwork incorrectly, and end up in limbo. After all, what’s to say the language barrier will get any easier?
Another thing to consider is the time and effort spent in finding and hiring a capable contractor to renovate the property. You’ll likely have to hire a translator/assistant who can research local contractors and help oversee the project. That could get costly very fast. But if you can pull it off, I’m sure you can make your 20,000 Euro investment back quickly.
It goes without saying that tourism is a huge industry in Italy. With so many entrepreneurs buying up $1 houses to revitalize these small cities, tourism will surely follow. But there’s always risk involved and a project like this isn’t for everyone. I’ll do it eventually, if only as a practice run for bigger projects stateside. But for now, I think if I do travel to Italy, I’ll be staying in someone else’s Airbnb, Not my own.
Have you looked into buying a $1 home in Italy?
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