One Euro Homes in Italy. Where is the catch ?

adindas

There are documentaries about this. For example from SBS

https://www.youtube.com/watch?v=32o927ETO1A

https://1eurohouses.com/

Also if you search there are other documentaries from other sources.  But I have not done a deep research

Want to know the pro and contra about buying properties like this especially from those who have invested in similar properties like this in the past.

I remember this case like exist in Berlin during the fall of Berlin Wall. Some people who bought cheap dilapidated properties in Berlin soon after the fall of Berlin Wall has become multi multimillionaires by now.

It is definitely not EUR1,  if you include other costs such as conveyances, and other admin costs? But even £1000 at least their value will up multiple in more than a decade ? Let alone if it is a freehold. You do not need to live there just buy and forget, let it empty and play a waiting game. There will be no more cost for maintenance or travelling cost to Italy. Council tax presumably will be very low due to the value of the property. What is your opinion ??

This is another article regarding the hidden cost

https://1eurohouses.com/the-hidden-costs-of-1-euro-houses/

Nebulous2

I’ve seen at least one article about a buyer who handed it back, as he couldn’t meet the terms and conditions, couldn’t get builders and couldn’t afford to do it up. 

Most of us are used to living where there is a considerable demand for housing, with competition to buy them and high prices as a result. However there are lots of places in the world with no industry, no young people, and no demand - with property deteriorating and not worth what it would cost to renovate it. 

Read some stories about rural Japan, where they are bulldozing towns no-one wants. They’ve had the same to some extent in the North-East of England, and in some areas of Scotland. 

Its possible / probable that much of the West is heading the same way, with Japan leading the way. 

Progression isn’t linear. You get times when the flow appears to reverse, an influx of young Eastern Europeans, a mass movement to the country due to working from home, but over the piece there is an inexorable move away from the land, which has been going on for several hundred years. 

I don’t have any inclination to be Canute like and try to hold back the tide.... 

Aretnap

No need to go to Italy. Similar offers come up in Britain from time to time.

https://www.stokesentinel.co.uk/news/you-qualify-buy-1-house-774343

The catch is that usually it's a dilapidated house in an empty street that nobody wants to live in; you have to commit to spending a large amount of money on renovations, and while the renovations might well increase it's value to the point where you make a profit, there's no guarantee that they will. It is after all in Stoke, not Chelsea. 

SAC2334

Aretnap said:

No need to go to Italy. Similar offers come up in Britain from time to time.

https://www.stokesentinel.co.uk/news/you-qualify-buy-1-house-774343

The catch is that usually it's a dilapidated house in an empty street that nobody wants to live in; you have to commit to spending a large amount of money on renovations, and while the renovations might well increase it's value to the point where you make a profit, there's no guarantee that they will. It is after all in Stoke, not Chelsea. 

Yes, there were some 25 miles from me in South Yorks  .Even  Jeremy Clarkson mentioned it on Top Gear .A house for a tenner. The local council were selling them off on proviso they were completely refurbed.Many had been burnt out by the local dossers .I can imagine they have the same run down dodgy areas in parts of towns in Italy 

adindas

SAC2334 said:

Aretnap said:

No need to go to Italy. Similar offers come up in Britain from time to time.

https://www.stokesentinel.co.uk/news/you-qualify-buy-1-house-774343

The catch is that usually it's a dilapidated house in an empty street that nobody wants to live in; you have to commit to spending a large amount of money on renovations, and while the renovations might well increase it's value to the point where you make a profit, there's no guarantee that they will. It is after all in Stoke, not Chelsea. 

Yes, there were some 25 miles from me in South Yorks  .Even  Jeremy Clarkson mentioned it on Top Gear .A house for a tenner. The local council were selling them off on proviso they were completely refurbed.Many had been burnt out by the local dossers .I can imagine they have the same run down dodgy areas in parts of towns in Italy 

What happen if you do not refurbish it. Just leave it as it is. You could use an excuse later that you don't have money to refurbish it.

You could show the some money for refurbishment initially but then anyone could spend that money within less than three months.

You refurbish it in ten years time (say) when you believe it is already profitable to let.

Thrugelmir

adindas said:

SAC2334 said:

Aretnap said:

No need to go to Italy. Similar offers come up in Britain from time to time.

https://www.stokesentinel.co.uk/news/you-qualify-buy-1-house-774343

The catch is that usually it's a dilapidated house in an empty street that nobody wants to live in; you have to commit to spending a large amount of money on renovations, and while the renovations might well increase it's value to the point where you make a profit, there's no guarantee that they will. It is after all in Stoke, not Chelsea. 

Yes, there were some 25 miles from me in South Yorks  .Even  Jeremy Clarkson mentioned it on Top Gear .A house for a tenner. The local council were selling them off on proviso they were completely refurbed.Many had been burnt out by the local dossers .I can imagine they have the same run down dodgy areas in parts of towns in Italy 

What happen if you do not refurbish it. Just leave it as it is. You could use an excuse later that you don't have money to refurbish it.

Then by default you lose the property. No one will be playing games. Be a planned regeneration. 

Aretnap

Indeed . The council will be selling the houses for a song because they want the area regenerating, but want to offload some of the costs and risks of the regeneration onto the people who will be buying the houses. If you don't do the renovations in the agreed timeframe the ownership reverts to the council. Depending on the contract there may also be penalty clauses, and if you abandon the renovations half way through you might not be compensated for the money you've already spent.

There's certainly money to be made buying up dilapidated properties for next to nothing and redeveloping them, if you know what you're doing and you have a passion for very big DIY jobs. But it's not free money. It's doubtless a lot of work, and there are significant risks if the renovations turn out to be more costly than you expected, or if the property market doesn't do what you expected, or if you just realise half way through that you've taken on a much bigger job than you were actually ready for.

Albermarle

Or the area goes even more downhill, because the regeneration scheme isn't really successful/not enough takers/stalled building works etc

prowla

One of the TV shows was about some in Liverpool.

coyrls

SAC2334 said:

Aretnap said:

No need to go to Italy. Similar offers come up in Britain from time to time.

https://www.stokesentinel.co.uk/news/you-qualify-buy-1-house-774343

The catch is that usually it's a dilapidated house in an empty street that nobody wants to live in; you have to commit to spending a large amount of money on renovations, and while the renovations might well increase it's value to the point where you make a profit, there's no guarantee that they will. It is after all in Stoke, not Chelsea. 

  I can imagine they have the same run down dodgy areas in parts of towns in Italy 

I think the ones in Italy tend to be in depopulated villages with an older remaining population rather than in dodgy parts of towns.

Marcon

adindas said:

SAC2334 said:

Aretnap said:

No need to go to Italy. Similar offers come up in Britain from time to time.

https://www.stokesentinel.co.uk/news/you-qualify-buy-1-house-774343

The catch is that usually it's a dilapidated house in an empty street that nobody wants to live in; you have to commit to spending a large amount of money on renovations, and while the renovations might well increase it's value to the point where you make a profit, there's no guarantee that they will. It is after all in Stoke, not Chelsea. 

Yes, there were some 25 miles from me in South Yorks  .Even  Jeremy Clarkson mentioned it on Top Gear .A house for a tenner. The local council were selling them off on proviso they were completely refurbed.Many had been burnt out by the local dossers .I can imagine they have the same run down dodgy areas in parts of towns in Italy 

What happen if you do not refurbish it. Just leave it as it is. You could use an excuse later that you don't have money to refurbish it.

You could show the some money for refurbishment initially but then anyone could spend that money within less than three months.

You refurbish it in ten years time (say) when you believe it is already profitable to let.

These aren't unconditional sales. If you don't renovate the property to an acceptable standard within a prescribed timeframe, you lose ownership.