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The initiative “Houses for 1 euro in Italy” (Case a 1 euro) has taken over the media, enticing with the idea of acquiring a property for the price of a coffee. But how real is the profit from such an investment and what are the true costs behind this dream?
Let’s take an in-depth look at whether this is a path to easy money or an expensive illusion.
The myth of 1 euro versus reality
The price of 1 euro is only a symbolic gesture. It is a mechanism to revitalise depopulated communities. The reality is that these properties are old, often semi-dilapidated buildings.
The real commitments you make:
- Repair Commitment: you are required to submit a project and begin restoration within 1-3 years.
- Bank Guarantee: a deposit of €3,000 – €5,000 is often required and is refundable upon completion of the renovation.
- Covering all costs: you cover absolutely everything – notary fees, taxes, lawyer’s fees (which can reach several thousand euros) and above all – the full cost of the renovation.
The true cost: restoration costs
Here 1 euro quickly turns into tens and sometimes hundreds of thousands of euros. Properties for 1 euro often do not have functioning plumbing and electrical installations, their roofs are collapsed and the walls are unstable.
Sample repair costs:
- Minimum renovation: for a small house in relatively good condition, expect costs of €20,000 – €50,000.
- Full restoration: for most properties, costs range from €80,000 to €200,000+.
- Contingency: always budget at least 15-20% extra.
- Bureaucracy and projects: you will need a local architect/engineer to draw up the designs and manage the process with the authorities, which is also a significant cost.
Potential for real income from tourism
Can renovated property bring in money? Yes, but only under certain conditions:
- Location, location, location: the village must have some tourist attraction – proximity to a beach, mountain, lake or be picturesque enough to attract visitors.
- Quality of property: you need to create a property that offers modern comfort but retains authentic Italian charm.
- Marketing and management: you will need effective marketing and a local management company (whose fees are 15-25% of income).
Sample yield:
- Income: a small house in a popular village can fetch €50-€150 per night in high season.
- Annual gross income: can range from €5,000 to €15,000 for more modest properties.
- Payback: After deducting all costs (repairs, taxes, fees, maintenance), the return on the initial investment can take decades.
Who is this investment suitable for?
Investing in houses for 1 euro in Italy is NOT for everyone. It is best suited for:
- People looking for a second home for personal use for whom the potential income is just a bonus.
- People with construction skills who can reduce labor costs.
- Investors with a long-term horizon who do not expect a quick profit.
- Enthusiasts who want to immerse themselves in authentic Italian culture.
Conclusion: real income or expensive illusion?
Investing in houses for €1 in Italy can generate real income, but it is far from a “free” deal. It requires a huge financial investment, a lot of time and patience. Don’t see it as a fast track to riches, but as an opportunity to create a unique property with cultural value that, if managed properly, can become a profitable business.
This post is also available in: Български
