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How bargain homes made one Italian town €100 million in two years

After Sambuca di Sicilia became the poster child for Italy's one-euro homes project, local authorities say the town's fortunes have turned around as the area is now enjoying a 'Renaissance'.

How bargain homes made one Italian town €100 million in two years
Exotic architecture and courtyards filled with orange trees are part of the draw in Sambuca, Sicily - along with properties with a starting price of €2. Photo courtesy of Comune di Sambuca

In recent years dozens of depopulating Italian villages have put up cheap homes up for sale in an effort to revitalize local communities, but one in particular stands out from the rest. 

Sambuca Di Sicilia, in deepest Sicily, has been the most successful of the ‘one euro home’ villages

Since 2019, when it first began to auction off crumbling buildings for a starting price of one euro, the village has enjoyed a Renaissance.

According to local authorities a total of roughly €100 million has flowed in due to the initiative, positively impacting the rural area’s local economy in spite of the pandemic slowdown. 

“Twenty new B&Bs have opened in town, while before there was just one,” says deputy mayor Giuseppe Cacioppo. “The cheap home sales have generated some €3 million, while overall renovations are worth over €20 million.”

Mayor Leo Ciaccio adds that Sambuca’s time in the global spotlight has spurred public investments, with roughly €40-€50 million earmarked for improving roads and reviving old underground cellars, while the remote village recently got its first helicopter pad for emergencies.

Photo courtesy of Comune di Sambuca

The influx of foreigners seeking to grab a place in the sun by purchasing a cheap home, and who then end up staying in the village for at least one week a year, has already led to a 200 percent increase in tourism, according to Cacioppo, generating an estimated €8-€10 million in revenue.

Following the initial 2019 scheme Sambuca launched another auction of old dwellings last summer with a starting symbolic price of €2. 

READ ALSO: Why Italians aren’t snatching up their country’s one-euro homes

All cheap homes in both auctions were eventually sold, with some going for up to €25.000 – with many going to foreign buyers who decided to purchase slightly more expensive homes in need of little work, breathing new life into the real estate market. 

A total of 135 empty homes in the area have been sold in just two years, which also means the local population benefited from the housing scheme. 

Many families were finally able to sell off empty houses which had been lying vacant for decades, and a positive chain reaction ensued.

“Other than B&Bs, new taverns, wine bars, artisanal shops also opened up, while local craftspeople, builders, carpenters, cleaning services, architects and engineers are now busy working on the sold homes. Some 50 houses have already been redone”, says Cacioppo.

So what is the secret of the success in Sambuca compared to other villages that have launched similar housing schemes? 

Firstly, the mayor says, it was the only town to offer old homes for sale which were already in the possession of local authorities. 

READ ALSO: The hidden costs of buying a home in Italy

“Due to the earthquake that rocked the area in 1968 many buildings in the historical center were abandoned, and in time the town hall took them over to secure the area and launch a revival project,” explains Cacioppo.

“Unlike other towns, we are the direct owners so there is no need to liaise between local families and new buyers.”

“The fact that the town hall is the one involved party is a guarantee,” he says, adding that the process was not slowed by having to track down the legal owners of abandoned properties, many of whom emigrated long ago.

Photo courtesy of Comune di Sambuca

Another plus point is the exotic feel of the village. The ancient old town features typical Arab-style dwellings with internal courtyards filled with orange trees, which hail back to Sicily’s spellbinding past.

The residents I spoke to were all ecstatic about the revamp of the village. Francesco Sciamé recently opened a B&B, called Donna Baldi Centellis, in a historical building complete with original majolica tiles. 

He says it was never the right time to open such a business, mainly because he’d have had zero customers. Now the B&B is constantly fully booked.

“I’ve always wanted to run a B&B and the success of the housing scheme offered me the opportunity,” he says. “Sambuca became known worldwide and foreign buyers started flocking here, so I offered them a place they could stay while house hunting. There was no reason to open it before, the village was unknown”. 

OPINION: Bargain homes and fewer crowds – but Italy’s deep south is not for everyone

Riccardo Mulé has opened a wine bar, L’Enoteca del Re, on Sambuca’s main street where he makes cocktails with wild herbs that grow in the nearby fields. 

He didn’t quite start from scratch, given he already owned nearby Re Umberto Caffé, where locals meet for morning espresso, but he says the cheap homes frenzy pushed him to expand his business.

“I realized tourists were savvy clients, they wanted to taste traditional drinks with plates of local hams and cheeses. They did not want the usual Martini, but niche Sicilian liqueurs,” says Mulé.

Where will the town go from here? The local officials and residents I spoke to believe that Sambuca will become a crossroads for different cultures, as people from all over the world join the effort to revive the local economy.

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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.

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 still 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, 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 turning up to claim the property back after you’ve bought it.

A trullo house befre 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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