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PROPERTY

The cheap Italian properties buyers are choosing instead of one-euro homes

Everyone has heard about Italy’s one-euro homes offer, designed to breathe new life into abandoned towns and villages. But there’s another affordable option that many foreign buyers find more interesting.

Published: 30 November 2021 16:43 CET
Updated: 2 January 2022 08:30 CET
A view over the rooftops in the town of Mussomeli, Sicily.
A view over the rooftops in the town of Mussomeli, Sicily. Photo: Case1euro.it

Dozens of towns across Italy are now offloading crumbling properties for just one euro, but a few spots have come up with a clever move which is proving more alluring. 

They’re selling old but cheap turnkey homes that are immediately livable – or at least, only in need of minor fixes.

The most successful towns so far have been Troina and Mussomeli in Sicily, the quaint isolated village of Carrega Ligure in Piedmont, and the town of Latronico in deep Basilicata. 

Local authorities in these areas have opened real estate offices and created online platforms advertising empty old homes on sale for as little as €4.000, most in great shape and some even with furniture. Catalogues have been drawn up to show newcomers what’s on the market. 

These places have also put a few dilapidated one euro properties up for sale, but local administrators say the demand for these has been much lower.

OPINION:

“It’s interesting to welcome visitors who initially want a one euro house but then, after taking a look at other available, more expensive properties, change their minds and snatch up a ready-to-occupy home”, Latronico’s deputy mayor Vincenzo Castellano tells The Local.

Castellano believes the appeal of the one-euro homes leis solely in their “advertisement-like lure”; the thought of buying a house for less than the cost of an espresso would excite anyone. 

But then, he says, interested buyers are taken aback by the many requirements and excessive bureaucracy the schemes entail.

These include completing restyle work within three years and paying a guarantee deposit of between €2,000 and €5,000 on top of the extra expense and hassle of giving it a thorough makeover. 

The front door of a one-euro house for sale in Mussomeli, Sicily. Photo: Case1euro.it

Such strict rules pushed American buyer Anne Procianos Cohen to opt instead for a €20,000 traditional dwelling in Latronico’s old district. Minor work needed included re-activating the utilities. 

“We wanted a place we could immediately live in,” she says. “It was the pure joy of buying a turnkey house, not a shell, through speedier procedures and knowing exactly that we wouldn’t be bearing any unpredictable costs with a massive renovation. We needed a high degree of certainty in our investment.”

Anne and her husband moved in the house even before finalizing the purchase deed, and spent one whole month in Latronico this summer. 

“We loved the great added value of directly experiencing how local people lived in these old homes,” she said.

READ ALSO: The parts of Italy where house prices keep rising despite the pandemic

“Had we bought a one euro property and totally changed it, the house would have lost its charm, character and practicality. You can see that our house has an intelligent design to it, we wanted to keep that even if it meant spending weeks trying to figure out how the window shutters worked.” 

Budget is key. Procianos notes that you’re never really getting a one euro home due to unpredictable renovation expenses, and that even the notary costs, ranging between €2,000 and €4,000, are equal to those paid for the sale of a turnkey property.

I always say, you get what you pay for, so with a one-euro house we were afraid we’d get a … one-euro house worth that exact amount in all ways, but then how much more to spend? If you decide to go down that road, you need more financial resources and flexibility than we have.”

Procianos advises others who are willing to buy a cheap turnkey home – or even a one euro one – to first take a deep dive into local village life and pick the location carefully.

It’s been crucial to them that Latronico has everything – from boutiques to pharmacies, while good hospitals are nearby.

Choosing an isolated village could be risky, she says, as often in Italy these tend to be totally empty, without even a bar or supermarket. 

An Australian visitor tours one-euro homes for sale in the town of Gangi, Sicily. Photo: Tiziana Fabi/AFP

Castellano argues that while buyers of ready-to-occupy cheap dwellings don’t get to re-shape these from scratch like a blank canvas, as they could with a one euro house, they’re offered a wider choice of newer homes and know exactly what they’re getting into. They also get to meet the old owners to negotiate lower prices. 

UK-based Muhammad Ramzan snapped up a panoramic apartment in Mussomeli for just €4,500, in need of minimal fixes, after touring the whole town and seeing 22 properties ranging from one to 550.000 euros, including a rural villa with pool. 

Mussomeli’s town hall has set-up a multilingual task force of volunteers who show visitors what’s for sale and assist them.

“You have more options when you search for homes that are above one euro, and that’s crucial to keep in mind,” Ramzan says. “If you focus on just one crumbling property and then there’s a problem with it, you run out of alternatives and get stuck.”

“There was always something missing or wrong with all the other 21 properties I visited and scrutinized – one had a low roof, another small rooms and required a lot of structural work.” 

“I finally picked a house overlooking the castle because of the stunning view and sense of utter rural peacefulness. The minor fixes needed, mostly of extra design, I do those in my own time, at my own pace”, he explains.

He advised other buyers to “take things slowly, avoid rushing in to buying a house. It’s better to think twice than to grab a one euro home sight unseen, maybe even online, just because you think you’re getting a great bargain.”

READ ALSO: What taxes do you need to pay if you own a second home in Italy?

What frightened Ramzan away from the one euro scheme in Mussomeli was the higher risk entailed, linked to meeting the restyle deadline or face losing the deposit guarantee, and how much he’d end up spending to fully renovate it. 

“If you invest just 4,500 euros in a cheap, immediately livable property that’s way less than doing a basic restyle of a one euro home. I also kept some of the original furniture”, he says.

The goal of most one-euro schemes in Italy is to breathe new life into dying rural communities, but Procianos thinks this can also be a negative point. 

“Revitalization projects are extraordinary, however, we’re not needed to make a town vital because Latronico is already vital, and that makes a huge difference to us. It’s close to the coast and beautiful cities like Matera, there’s a pristine scenery and popular thermal baths.”

“Everything is close at hand”.

See more in The Local’s Italian property section.

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PROPERTY

Five pitfalls to watch out for when buying an old house in Italy

Tempted to snap up a little slice of Italy at a bargain price? The older the house, the more potential issues you'll need to be aware of.

Published: 29 March 2024 10:17 CET
Updated: 29 March 2024 12:03 CET
Five pitfalls to watch out for when buying an old house in Italy

Italians themselves may have very little interest in buying or fixing up Italy’s many unwanted old houses, but international visitors are often swept away by the charm of these rustic buildings in romantic settings.

It’s easy to see why. The quirky structures, period details, and picturesque surroundings – not to mention low asking prices – inspire countless people worldwide every year to investigate buying an Italian home of their own, often as an investment or retirement property.

MAP: Where in Italy can you buy homes for one euro?

International interest in cheap Italian property has only intensified in recent years, with dozens of idyllic villages advertising ‘one euro’ homes and other low-cost property offers aimed specifically at foreigners.

Savvy buyers are aware that non è tutto oro quel che luccica (all that glitters is not gold), and quickly realise that these long-neglected buildings really cost somewhat more than one euro to buy and renovate. Still, some of The Local’s readers tell us these offers are worth taking advantage of.

But whether you’re looking at spending a couple of thousand euros or much more on your dream Italian property, there’s always a lot to consider – including some issues that you’re unlikely to experience when buying a home in your home country.

These unexpected issues can turn the Italian dream into a bit of a nightmare, and sometimes lead to buyers having to abandon a purchase, losing money in the process.

But if you’re aware of potential pitfalls in advance, you’re far more likely to be able to complete the purchase process with no major problems at all.

Property taxes and fees

Of course you’ll be expecting tax as part of the property purchase process, but Italian property taxes are particularly steep.

Experts say the total cost of buying in Italy will add approximately ten percent to the purchase price, and advise prospective buyers to budget accordingly.

There’s stamp duty, which is between two and nine percent of the cadastral value (valore catastale) of the property, with a minimum threshold of €1,000 even on the cheapest homes. Plus VAT at four or ten percent, land registry tax, and, if applicable, mortgage tax.

You can also expect to pay between one and five percent of the purchase price as a fee to the estate agent. In Italy agents work for both the buyer and seller – and collect compensation from both parties once the deal is done.

Then you’ll likely need a couple of thousand euros for the notary, plus a similar fee for any other agents you use, such as a mortgage broker, plus legal fees if a lawyer is involved.

See more about the ‘hidden’ costs of buying property as a foreigner in Italy.

Bickering relatives

It may sound unbelievable to non-Italians, but it’s not unusual to find that even the smallest old properties, or parts of them, are legally divided up between dozens of family members due to Italy’s inheritance rules.

One buyer The Local spoke to found herself having to deal with 22 people, all relatives, who each turned out to own a share of a small property she was buying in Mussomeli, Sicily; one of the first places in the country to sell off old properties for a euro.

Toti Nigrelli, the mayor of Mussomeli, said “having to negotiate the sale with multiple owners” was normal.

While this buyer impressively managed to negotiate the deal with all 22 parties, in many cases similar sales fall through because relatives – distant cousins, great-aunts, long-lost nephews – are often not on good terms, disagree over the sale, or can’t be traced.

At the very least, you will need to check the property’s records carefully to make sure there are no surprises in store – such as long-lost relatives who might turn up to claim the property back after you’ve bought it.

A trullo house before renovation in Cisternino, Puglia. AFP PHOTO / GIUSEPPE CACACE

Illegal builds

Another thing that often astounds foreigners who buy property in Italy is the enormous number of illegal builds – homes that were built entirely without permits – on the market as well as the even greater number of houses featuring modifications which were never officially approved or recorded.

Illegal housebuilding in Italy is often thought of as a decades-old issue, but recent data shows that, in 2021, 15 houses were built illegally for ever 100 authorised. Illegal building is twice as common in the south of the country as in the north, and thousands of cases are detected every year – though few people are ever prosecuted.

If you buy a house with undeclared modifications, the buyer is usually held responsible for paying to regularise the paperwork with the town hall. If you catch this issue early enough – and not all sellers or estate agents will inform you about them – you may be able to negotiate for the seller to cover these costs before you make an agreement.

If however you end up unknowingly buying a house built without the correct permissions, or if you never regularise any unauthorised changes, the property will likely prove very difficult to sell on.

This is one of many reasons why buyers need to carefully check the catasto (land registry or cadastral records) of a property themselves, and have a notary check everything is in order.

Conservation rules

When you initially view and fall in love with that charming stone house in the historic centre of a gorgeous Italian hilltop town, rules and regulations are probably not the first thing on your mind.

But it pays to know that old homes featuring frescoes, loggias or ancient stone cellars, as appealing as they are, are often protected by Italy’s cultural heritage authority – meaning more red tape for their owners.

One reader was forced to give up her dream of buying a portion of a two-floor 1700s building in the village of Civita Castellana, Lazio, because it needed renovation work to make it livable – but the frescoed walls, decorated fireplaces and elegant stonework entrance were vincolati (under restrictions) due to Italy’s historic conservation rules.

READ ALSO: Tuscany or Basilicata? How Italy’s international property market is changing

In many cases, this means renovation work can’t be carried out at all, or will be subject to reams of paperwork and close monitoring from authorities known as the sovraintendenza belle arti. To make things trickier, rules can also vary by local authority.

If you think a property you’re interested in might be subject to these rules, it’s always wise to consult the local sovraintendenza at an early stage. And of course, you’ll want to get hold of the records of the property from the catasto (land registry).

Resale prices

The high taxes and costs involved in buying and selling a property in Italy are often said to be one reason why, for most Italians, the concept of climbing the property ladder doesn’t really exist in the way it does in some countries.

Italy’s property market is unusual in Europe in that house prices on average are relatively stagnant. With the exception of some types of property – such as new-build apartments and luxury homes – overall prices have risen little over the past decade.

This is partly because the Italian market is weighed down by a large volume of old, neglected properties in need of major work – hence schemes like the one-euro sales and the (formerly popular but now-unavailable) 110 percent ‘superbonus’ for renovations.

But overall, if your main motivation for buying an old Italian home and renovating it is profit, you’ll need to consider that the resale potential may not be what you’d hope. The exceptions to this are at the pricier end of the market, in most major city centres, and in tourist hotspots.

See more in The Local’s Italian property section.

Do you have any more tips on buying a property in Italy? We’d love to hear from you in the comments section below.

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