Content creator Ben Morris traveled to Sicily to investigate the much-hyped €1 home scheme, only to uncover significant hidden costs that make the bargain far more expensive than advertised. The scheme, promoted by around 25 Italian municipalities, aims to combat depopulation by selling abandoned properties at minimal prices to buyers who commit to renovating them.
How the Scheme Works
In Sambuca di Sicilia, local estate agent explained the bidding process: "So, when they launched the first project, then there has been three: €1 houses, €2 houses, and €3 houses. The rules are more or less always the same. You have to do an offer of at least €1, €2 or €3, but you know that the higher offer will win the house."
Ben Morris noted: "So there's the catch in Sambuca. Although houses do go on the market for €1, they usually get bid on for up to €5,000 (about £4,200). However, the town that we're going to visit after this actually has houses that you can straight up buy for €1. No catch. And there's actually places available now."
Real Costs: Renovation and Fees
One notable buyer, Meredith Tabbone, purchased a property for €5,000 and later acquired the adjacent unit. Her total refurbishment costs reached a staggering $446,000 (approximately £333,000). This example underscores that the initial purchase price is only a fraction of the total investment.
In Mussomeli, Ben met Natalie, who showed him properties costing less than £1. Upon entering one two-storey dwelling, he was advised to walk only on the edges of the floor for safety. He remarked: "And that is exactly why so many of these homes are being sold for so cheap. You're going to need to do renovations and spend money to make it livable. You also have the responsibility to make sure your house doesn't fall down and like kill your neighbour or something."
Additional Expenses and Responsibilities
Natalie clarified that beyond the purchase price, buyers must cover notary fees and certificates, which Ben described as another "little catch." These transaction costs add to the financial burden. The underlying bet for municipalities is that renovated, occupied homes generate tax revenue and revitalise communities, whereas empty properties are a liability.
Speaking about the initiative, 1eurohouses.com said in a statement reported by the Independent: "We do not need new constructions and new overbuilding. The strategy to improve the housing environment and reclaim our cultural identity is to revive the small abandoned centres or to redevelop buildings in a state of abandonment, with a story that is our history."
