We have all seen those ads about the €1 homes being sold in Italy, haven’t we? They surely seem too good to be true, right? These ads make most people think how it is possible that homes in Italy, which is one of the most prime real estate in the world, are being sold for €1. We help you decode this scheme which seems almost dream-like to most.
How Do These €1 House Auctions Actually Work?
The key to bagging these 1 euro houses in Italy is to be patient and be prepared to spend a lot of money. These houses are mostly located in the Emilia Romagna region of Italy which is known for the best gourmet experiences in the world. This is the region in which Parmigiano Reggiano, which is known as the king of cheeses, is made and sold. So owning a home in this region is a dream for many people around the world.
These 1 euro houses in Italy are actually auctioned off at the cost of €1 but a bulk of money is spent on renovating the house after you purchase it.
The Process of Auction
Generally, interested buyers have to be present in Italy to attend the auction. But if that is not possible at all, then you can give a lawyer a power of attorney or proxy to attend the auction in your place. But with the coronavirus pandemic changing the way things work around the world, it has also changed the way these 1 euro houses in Italy
are auctioned. You can register for these auctions from the comfort of your home now.
You have to register, pay a registration fee of 10 Euros and place your bid. You are in the auction as soon as you have done this. There is no need to provide a power of attorney to a lawyer anymore. The fee of 10 Euros will be used to cover the technical costs of the bidding and with that fee, you will be provided with a book titled “The Italian Homebuyer’s Guide” which will come in handy to you if you win a home in this auction.
The Next Step after Winning a Home in the Auction
The next thing to do after securing the home for yourself is to renovate the home so that you are able to live comfortably in it. These may be heavy on the pocket but there are many agencies and services in Italy now which help with making these home renovations easier, faster and cheaper.
Many municipalities in Italy provide cash benefits, tax rebates and other monetary advantages when a home is being renovated in their municipality. The Italian allows a tax break of a maximum of €96,000 when a home is renovated. This means that whatever is the total cost of renovating your home, you have to pay 96,000 less than that. This is a great deal for most people.
If you are a citizen of the European Union and have purchased one of the 1 euro houses in Italy, specifically in the Emilia Romagna region of Italy, then you get a regional contribution of €30,000. There are other benefits like this available in other municipalities around Italy so you must check the benefits you are eligible for before you start renovating.
To Conclude
If you happen to win one of the 1 euro houses in Italy, then you must be prepared to spend on renovating it. But owning a home in one of the most prime real estate regions in Italy is definitely a dream come true for most people.