Can you buy a home in Italy for R19?

With property prices out of reach for many first-time buyers in South Africa, the possibility of snapping up a home for €1 or approximately R19 (depending on currency fluctuations) may sound far-fetched. But this is a real possibility if you’re happy to consider a property in far-flung Italy.

The Italian €1 homes project has hit the headlines recently in part because of the ingenuity of the scheme and because celebrities Amanda Holden and comedian Alan Carr took part in the initiative and created a docu-series about it, called The Italian Job.

In the series, the duo donned hard hats and used their passion for interior design to transform a dilapidated home in Sicily. The renovated home was then sold and the profits were donated to charity.

But how realistic is it for South Africans to take part in this and how does it work?

Why launch €1 homes?

The reason behind the €1 homes scheme is a simple one: Italy is struggling with a depopulation problem. This is because young Italians are gravitating towards the bustling cities to find jobs and are falling out of love with the quiet, rural country life. It’s resulting in many of Italy’s small villages becoming desolate with only a few remaining older folk living in them. But as they age further, they are passing on and, in most cases, with no family to leave their homes to.

For those who inherit a home from a relative in the countryside it’s often not worth the trouble. This is because owning a second home in Italy means paying more taxes, so it often makes sense to sell these homes, particularly if they have no intention of moving back from the city.

Do you only have to pay €1?

The project is offered by around 25 Italian municipalities. They offer prospective buyers the opportunity to purchase a home for the symbolic price of €1. It’s symbolic because there’s more to it. Starting prices can go as low as €1, but the catch is that these homes are often very old and neglected and in need of much refurbishment.

They’re by no means luxurious, splendidly built villas! As 1eurohouses.com puts it: ‘We are talking mostly about dilapidated or dangerous properties in need of renovation.’

But you may be able to snap up a bargain that may not need so much work. It’s a case of doing your research and finding the gems among the hundreds of homes being advertised online. 1eurohouses.com adds: ‘In some cases we also talk about houses built in the 80s and 90s. These need less extensive renewals.’

How much do renovations cost?

According to a report by the Independent, renovations can cost between €20,000 and €50,000, so between R384,220 and R960,550. This still keeps it ‘affordable’, particularly when you consider that the average cost of a house in South Africa’s major metros is generally over R1 million.

Don’t forget to factor in other costs like legal fees, which can add up to around €3,000. It’s inadvisable to buy a property online without viewing it, so you’d need to factor in the costs of traveling up to Italy as well as any associated visas that you’ll need for the trip.

Finally, make sure you have all the experts that you will need lined up before engaging in this venture. This means ensuring that you have qualified notaries, construction engineers and builders who can help you with your project.

When it comes to the purchase and renovation rules of the homes, buyers of the €1 houses must guarantee the following according to 1eurohouses.com:

• A plan of the restructuring and revaluation project. This can’t be a wish list or a vague outline – it must be a solid plan and it must be executed within 365 days of purchase of the property.
• Support notarial fees for registration and vulture.
• Start on the work once all the permits have been organised. The timeframe is decided by the municipality.
• Take out a surety policy of between €1,000 and €5,000 to guarantee the execution of the work. Some reports claim that the guarantee fee can go as high as €10,000. This policy usually expires within three years.

Regions taking part in the €1 house initiative include the likes of Lombardy, Tuscany, Liguria, and Piedmont, to name but a few. You could also buy homes in Sardinia and Sicily.

Can South Africans buy property in Italy?

Buying a property in Italy as a foreign buyer is not always a straightforward exercise because there are various rules that apply depending on where you are from. European Union citizens are free to buy property in Italy as well as any citizens of countries that have a bilateral agreement with Italy when it comes to property purchases according to Expatra.com.

If there’s no bilateral agreement Italy’s reciprocity rule will then apply. According to Expatra.com this means that if an Italian can buy a house in your country, then you can buy in Italy.

The municipalities involved in the project may each have their own rules and stipulations, so it’s important to contact them directly first before getting your hopes up on a place you’ve spotted online. 1eurohouses.com adds: ‘Many municipalities (to make sure the buyer is serious) require that interested parties visit the municipality before purchase to see the houses themselves.’

Where can I find listings of these €1 properties?

To find out more about which Italian municipalities are involved in this project and to find out more about how this works, go to case1euro.it, 1eurohouses.com and property-insicily.estate. Local government websites such as Commune of Sambuca or Citta de Troina also have information about the initiative and listed properties for sale.