Many of you have probably heard something about the “CASE A 1 EURO” program, in which you can get ownership of a historic building in Italy for just one euro. Together with real estate expert Anastasia DiCaprio and a participant in such a program, we understand the important issues and pitfalls of such an investment: do buyers know what they are doing, and can buying a “throwaway” be more profitable than investing in ready-made real estate?
Why do Italians sell houses for one euro
In our dynamic time, where something is constantly changing dramatically, people are becoming more pragmatic and less and less believe in some fabulous “unique opportunities”. Now a generation is at the helm, whose financial literacy and skepticism exceed all the past combined. It is important for people to build a stable present and a reliable future, so all potential solutions are calculated several steps ahead to assess their success.
In the era of conscious capital investment and long-term investments in stable assets, the idea of buying a home for euros immediately looks kind of suspicious: the question automatically arises “what’s wrong with it?” Was someone killed there and they want to shift the responsibility to the particularly gullible? The couple quarreled, and one out of spite wants to deprive the other of everything? It turns out that this is not the case at all.
The CASE A 1 EURO project has really existed in Italy for more than 10 years and offers everyone who wants to buy a property for a nominal price. Of course, with several conditions, but among them there is no need to take on someone else’s crimes.
“House for Euros is a program aimed at reviving deserted settlements located far from tourist routes and attracting new residents to towns and villages. Many municipalities in Italy from time to time offer housing for a nominal cost in exchange for the reconstruction or gentrification of the building by a new owner. First of all, the program involves emergency and buildings damaged by time and neglect, but sometimes you can also find relatively modern structures (80-90s) that simply turned out not to be needed by the owner, and he does not intend to pay tax for extra space anymore,” says Anastasia DiCaprio, real estate agent in Italy.
Now, after a break, Italy is ready to offer options for houses for restoration again. Almost all regions of the country participate in the program, and new settlements from remote municipalities are regularly connected to the project. Most often, buildings in really terrible condition will be offered for purchase — for example, those damaged after natural disasters or abandoned more than half a century ago, but there are also more pleasant options to attract investors to the regions.
* Gentrification is the process of transforming disadvantaged or decadent neighborhoods/villages/cities into places for the middle and upper classes. This happens through the involvement of better-off residents and the creation of appropriate infrastructure for them.
A house for one euro will never be a house for one euro.
Who buys ruins and why do they do it
Contrary to the popular belief that people buy houses “on the stock” blindly and do not know the scale of the tragedy, being led to a beautiful picture — most of the project participants do this consciously. The threshold for entry into the program is quite high, and buying an area for euros does not give you the right to a residence permit, so those who take on such responsibility are prepared for this.
Rubia Daniels is an alternative energy specialist from California. As part of the program, she and her family have already bought five houses for one euro, three of which in 2019. That is, they have already been completely reconstructed and allow you to announce the final estimate for restoration.
“In 2019, my husband saw an ad for the sale of houses for one euro in Sicily, and a few days later I packed up and went to Italy to find out if it was true and if so, why. We had never heard of such a program before and were not interested in it, so I studied the issue quite painstakingly on the spot. I toured several cities where housing for euros was being offered at that time, and the city of Mussomeli attracted me,” Rubia says about the beginning of the journey.
The case of the Daniels family attracted many foreign media, because it closes almost all the issues hovering around buying a house for a nominal fee: people are foreigners, did not seek to Italy, did not know about such a project, but became interested and “fit in” it, and even more than once. We also talked with Rubia and found out how the first construction went and why they decided to do it again.
All the purchased houses are located in the city of Mussomeli, in the heart of Sicily — it has bribed with its well-developed infrastructure and great potential for its expansion, as well as picturesque views. However, since the early 2000s, there has been an outflow of population in the city. So, in 2019, the municipality put up for sale more than 100 empty houses in order to restore the viability of the city. Rubia jokingly calls himself the pioneer of the Mussomeli renaissance.
When she learned the history of the city and the roots of the regional initiative with “free real estate”, she decided to become one of the pioneers of the campaign and invested in the first house. Since the deal took place face-to-face and without intermediaries, Daniels immediately had an idea what she was investing in, and had no illusions about the amount of work and scale of investments.
The house was completely destroyed, part of the roof collapsed and scattered over the entire area of what had once been living spaces. Nevertheless, she decided on this purchase, and soon acquired two more houses for her children. And even after the restoration of three houses, the family still has the resource and the initiative to continue participating in the project.
“Mussomeli was really dying. Just think about it — the city was almost deserted, and one hundred houses put up for sale for restoration were located in about one place. This part of Sicily could have become a ghost town, and only thanks to this project and the involved conscious people who turned out to be ready to rebuild the city, this did not happen,” Rubia shares.
Another Italian village sells houses for 1 euro
We have already renovated three houses, and each of them cost €20,000.
How much does a house really cost per euro
“A house for one euro will never be a house for one euro”, Daniels said in an interview. In total, one house can cost more than €50,000. However, if you own other resources — for example, time and contacts of trusted workers, this adventure may be much more profitable than buying a ready—made house, and it will also help the country.
A security deposit of €5,000 is paid for each house, which is a guarantee that you will fulfill your obligations and carry out repairs. In case of violation of the agreement, the deposit goes to the treasury of the municipality, and the buyer may receive a fine or even lose ownership.
Rubia was determined — she assembled a team of contractors and coordinated the process herself at the initial stages. More than 50 trucks of garbage were removed before the room was emptied and became suitable for any kind of work.
Most of the construction was supervised from a distance, and Rubia explains her calmness about this by trusting people.
“Working with local builders from a distance was not a problem. People are reliable in themselves, they are able to do their job the way it is customary in their country. You just need to manage your expectations so that they are not exorbitant,” Daniels notes.
In addition to the insurance premium, the repair costs are determined only by your capabilities and expectations of the house — whether you make it for life or for rent, whether you have your own little “Italian dream” or just basic ideas about comfort. The average repair costs for those included in the project are 15-30 thousand euros. The municipality does not regulate the interior of the building in any way, the only requirement is to preserve the historical facade of the building and complete the renovation on time.
“Three houses have already been renovated, and each of them cost €20,000. However, I am still investing in one of the houses — its value has already exceeded 50 thousand euros. But that’s because I plan to move here and live in this house. There are things that you can really save on without losing quality, but be prepared for the fact that the reconstruction of a building is not only about painting it and buying furniture,” Daniels says.
After the family entered the program and restored several buildings, many in California and beyond became interested in a house for one euro. Rubia has to some extent become a popularizer of the restoration of towns and villages by investing in abandoned houses. Now she takes groups of interested parties to Sicily and other regions of Italy, shares her experience and tells what to expect from entering into such a deal and how to prepare for it.
“70% of potential buyers are now women. I suppose this is because they think more about retirement, the future and a beautiful old age,” the program’s ambassador notes.
How to buy a house for one euro in Italy
Such a purchase will indeed require much more than one euro from you, but no one hides this. This is such a good deal with the country where you get a house, and the city or village in which it is located — money and gentrification. However, in order to decide on such a purchase, you need to have a clear plan of action, as well as a little altruism — not everyone will be able and willing to restore a house from desolation, which does not even look like a house at the initial stages. This step requires stress tolerance and time. Nevertheless, if you agree to this, after a couple of years you will be able to enjoy a house by the sea according to your project.
“Anyone can buy a house under the program, including a foreigner from a country with which there is a bilateral agreement on the possibility of buying real estate. Russia belongs to such countries. When concluding such a deal, you will be required to:
- To pay for the services of a notary and the tax on the transfer of ownership, as well as cadastral renewal.
- To make a refundable insurance premium as a guarantee of the completion of the work on time — its amount can range from € 1,000 to €5,000.
- Provide a reconstruction plan for the facility within the period set by the municipality (6-12 months from the date of purchase).
- Get all the necessary work permits and start them within the time limits set by your municipality.
- To finish the construction within the specified time frame (almost everywhere the maximum time for reconstruction is 3 years),” explains Anastasia DiCaprio.
Author
Constance Pelevina is a journalist
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