David Invest

The Truth About Italy's $1 Homes

David (Viacheslav) Davidenko

Trading the American hustle for La Dolce Vita, we explore the reality behind Italy's famous one-euro home programs. These symbolic $1 properties represent a cultural investment by small towns combating depopulation while offering foreigners an opportunity to embrace the Italian lifestyle.

• Small Italian towns selling homes for €1 to combat depopulation as younger generations move to cities
• Real costs include €20,000-€50,000 in renovations plus legal fees and taxes
• Italy's "Super Bonus" tax break can cover up to 110% of renovation costs if quality standards are met
• Buyers must submit renovation plans within 12 months and complete work within 3 years
• Towns like Ollolai specifically target Americans for their entrepreneurial spirit and DIY approach
• Purchase requires a refundable deposit (€1,000-€10,000) to ensure commitment
• Some towns offer move-in ready alternatives under €100,000
• Practical considerations include language barriers, finding qualified contractors, and navigating Italian bureaucracy
• Integration requires embracing "il bel far niente" (the beauty of doing nothing) and Italian social customs
• Cultural adjustment means prioritizing connections, lengthy meals, and living in the moment
• Program represents more than a real estate deal – it's a complete lifestyle transformation

If you're ready for a change and want something different, maybe Italy is calling you to trade productivity for presence and rediscover the art of slow living.

📰 Read more about this topic in our latest article: https://sunrisecapitalgroup.com/escape-america-buy-a-house-in-italy-for-just-1/

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Disclaimer: The content provided on this channel is intended for educational and informational purposes only and does not constitute investment, financial, or tax advice. We strongly recommend that you consult with qualified professionals before making any financial decisions. Past performance of investments is not indicative of future results. The information presented here is not a solicitation or offer to buy or sell any securities or investments. Our firm may have conflicts of interest, and we do not guarantee the accuracy or timeliness of the content provided. Investing involves risks, and you should carefully consid...

Speaker 1:

All right. So you know those Italy one dollar homes, the ones you see all over. Yeah Well, today we're going to like take a deep dive into that whole thing and see you know if it's really all it's cracked up to be or just like a fantasy.

Speaker 2:

You know, fixer upper fantasy.

Speaker 1:

Exactly. Is it really La Dolce Vita or is it a money pit? You know, yeah. So we've got excerpts from an article called Italy One Euro Homes for Americans, and that'll kind of be like our guide for this whole deep dive.

Speaker 2:

Yeah, this is a really interesting topic.

Speaker 1:

Yeah.

Speaker 2:

You know, it's more than just like selling off old buildings.

Speaker 1:

Right.

Speaker 2:

These towns are actually. They're really trying to like combat depopulation.

Speaker 1:

Yeah.

Speaker 2:

You know, like all these younger generations are moving to the big cities.

Speaker 1:

Oh yeah, I've heard about that.

Speaker 2:

And that leaves all these properties empty.

Speaker 1:

So they're not just like getting rid of houses.

Speaker 2:

Right, they're trying to revitalize.

Speaker 1:

Bring people back.

Speaker 2:

Yeah, bring people back. Exactly, it's like an investment.

Speaker 1:

Yeah.

Speaker 2:

In the culture you know.

Speaker 1:

A cultural investment. Oh that's a good way to put it.

Speaker 2:

Yeah, the government wants people to like really, you know, renovate the houses and become a part of the community.

Speaker 1:

Become part of the fabric of the town.

Speaker 2:

Yeah, exactly, okay, so yeah.

Speaker 1:

Let's talk about that price tag. Yeah, $1.

Speaker 2:

$1.

Speaker 1:

I mean come on, come on, what's the, what's the? There's got to be more to it.

Speaker 2:

It's symbolic. Oh, okay, it's a way to get your attention Right, but you're going to have to pay for renovations.

Speaker 1:

Okay.

Speaker 2:

And it's not cheap.

Speaker 1:

Oh really, how much are we talking?

Speaker 2:

You're looking at like $21,000.

Speaker 1:

Okay.

Speaker 2:

To $52,800.

Speaker 1:

Wow.

Speaker 2:

Or more. Yeah, so it's not it's for everyone.

Speaker 1:

Yeah, some elbow grease.

Speaker 2:

Yeah.

Speaker 1:

Okay, so then there's this super bonus thing. Right the super bonus, which is a tax break.

Speaker 2:

Yes.

Speaker 1:

That's supposed to cover your renovation cost. Yeah, it can actually cover up to 110% 110%, so they're paying me to fix up their house.

Speaker 2:

Well, there are some catches. Yeah, okay you need like a really good renovation plan and there are deadlines you have to meet, mm-hmm and the work has to be like really high quality, you know.

Speaker 1:

So it's not just free money. They're really making sure that it's done right.

Speaker 2:

It's an investment for them.

Speaker 1:

Okay, so they're basically hoping that these like long-term benefits of, you know, having someone come in and fix up the house and live there is worth more than this upfront cost of like paying for the renovations.

Speaker 2:

Yeah, they want to attract families and businesses.

Speaker 1:

Yeah, bring some life back into these towns.

Speaker 2:

Exactly A boost to the economy.

Speaker 1:

Speaking of attracting new residents, I noticed in this article they highlighted this one town yeah, all Alive.

Speaker 2:

All Alive.

Speaker 1:

Sardinia.

Speaker 2:

Sardinia.

Speaker 1:

It seems like they're like really really trying to get Americans to move there.

Speaker 2:

Yeah, americans specifically.

Speaker 1:

Why Americans?

Speaker 2:

Well, the mayor there, he seems to think that Americans, you know, they have that like entrepreneurial spirit.

Speaker 1:

Oh, ok, yeah.

Speaker 2:

The DIY ethos you know.

Speaker 1:

We like to get our hands dirty. We love a challenge, yeah.

Speaker 2:

We're not afraid of a fixer upper.

Speaker 1:

Yeah, exactly. So is that a common thing, like are all these $1 home programs targeting Americans, or is Al-Alai like unique in that way?

Speaker 2:

It's kind of both.

Speaker 1:

Okay.

Speaker 2:

A lot of towns welcome people from all over.

Speaker 1:

Yeah.

Speaker 2:

But Al-Alai is definitely like, focused on Americans.

Speaker 1:

Okay, so say I'm intrigued, but I'm not exactly Bob the Builder. You know I'm not a big DIY person.

Speaker 2:

Right.

Speaker 1:

Does All I have anything for me?

Speaker 2:

Yeah, they have move-in ready homes.

Speaker 1:

Oh really.

Speaker 2:

For under $105,000. Okay, you have some choices, so that's pick your level of involvement.

Speaker 1:

So let's say I'm ready to take the plunge. What do I actually have to do?

Speaker 2:

Do I like show up with a dollar and get the keys? Not quite Okay. There are closing costs.

Speaker 1:

you know legal fees, taxes, all that Right, that can be a few thousand dollars, so more like a few thousand and one dollar home.

Speaker 2:

Uh-huh, yeah, something like that.

Speaker 1:

All right, and then?

Speaker 2:

And then you got to have a renovation plan.

Speaker 1:

Okay.

Speaker 2:

A detailed one.

Speaker 1:

Yeah.

Speaker 2:

And you have to submit it within 12 months.

Speaker 1:

Okay.

Speaker 2:

And the renovation has to start within a year of when you buy it.

Speaker 1:

So they're serious about this.

Speaker 2:

Yeah, and it has to be done in three years.

Speaker 1:

Oh, wow, so there's a timeline, yeah, okay, what happens if I miss the deadline?

Speaker 2:

Well, there's a deposit.

Speaker 1:

Oh, okay.

Speaker 2:

Usually between $1,000, $10,000.

Speaker 1:

Yeah.

Speaker 2:

You get it back once the renovations are completed.

Speaker 1:

So they're making sure you're not going to like abandon the project.

Speaker 2:

Right, it keeps people committed.

Speaker 1:

Okay, that makes sense.

Speaker 2:

Yeah.

Speaker 1:

So another thing I was thinking about is like what can you actually do with these properties? Right, Can you just live there or can you like rent it out?

Speaker 2:

It depends on the town.

Speaker 1:

Oh really.

Speaker 2:

Yeah, some towns want you to live in the house but other towns they're okay with like second homes or B&Bs or businesses. You know you got to check the rules for that specific town.

Speaker 1:

So you could have like a little side hustle going on.

Speaker 2:

Yeah, exactly.

Speaker 1:

Like a little Italian.

Speaker 2:

A gelato shop, yeah, or a trattoria.

Speaker 1:

Yeah, exactly so many possibilities.

Speaker 2:

It was going to be an investment.

Speaker 1:

Okay, so we've kind of established that these $1 homes, yeah, they're more than just a real estate bargain. Yeah, it's like a whole new life.

Speaker 2:

Yeah.

Speaker 1:

But why Italy? Well, why not Italy? I mean, there are cheap properties all over the world.

Speaker 2:

Yeah, but Italy has the food.

Speaker 1:

Okay, the food yeah.

Speaker 2:

The history, the history, the scenery is amazing.

Speaker 1:

Yeah, it's beautiful.

Speaker 2:

But there's also something about the lifestyle that really like speaks to people, that Italian lifestyle yeah, it's all about the lifestyle that really like, speaks to people, that Italian lifestyle. Yeah, it's all about slowing down. Yeah, connecting with people, you know.

Speaker 1:

Yeah.

Speaker 2:

Enjoying life.

Speaker 1:

Savoring the moment.

Speaker 2:

Exactly.

Speaker 1:

Yeah, and when you think about how much houses cost in America.

Speaker 2:

Oh my gosh.

Speaker 1:

Like, the average is $440,000.

Speaker 2:

Yeah.

Speaker 1:

I mean even with the renovations, it's a good deal. It's a pretty good deal. Yeah, you know, yeah, so it's like trading the daily grind for La Donce Vita.

Speaker 2:

Right.

Speaker 1:

This article highlights a few specific regions that are, like, really good for this kind of thing. So are you ready for a little virtual tour?

Speaker 2:

Let's do it.

Speaker 1:

Okay, first stop. We're going back to Sardinia.

Speaker 2:

Okay.

Speaker 1:

To take a closer look at Ululae Sounds good. All right.

Speaker 2:

Yeah.

Speaker 1:

Welcome back to our deep dive, you know, into Italy's $1 homes.

Speaker 2:

Yeah, last time we were talking about, like you know, the dream of owning a piece of Italy, and all that, yeah, like all the cool things about it. Yeah, but relocating to another country like that's a big deal.

Speaker 1:

It's a huge decision.

Speaker 2:

Yeah, you got to think about more than just, like you know, falling in love with the idea.

Speaker 1:

Yeah, exactly. So for this part, let's get into like the details, like what are some things that our listeners should be like, researching and thinking about All right?

Speaker 2:

Well, first off the legal stuff. Oh yeah, the legal stuff that can be a bit of a headache.

Speaker 1:

I bet especially in another country.

Speaker 2:

Yeah, especially for foreigners.

Speaker 1:

Like what kind of stuff are we talking?

Speaker 2:

Well, yeah, I know about property laws and residency requirements and visas and taxes.

Speaker 1:

So it's not as simple as just like showing up with a dollar and being like I'm home.

Speaker 2:

Yeah, you'll probably want to find a lawyer over there.

Speaker 1:

Okay.

Speaker 2:

Someone who knows about real estate so they can help me with all that stuff. Yeah, exactly, they guide you through it.

Speaker 1:

Okay, what about the language barrier?

Speaker 2:

Oh yeah.

Speaker 1:

I mean I know a little Italian, yeah, like pizza and grozzi. Is that going to cut it?

Speaker 2:

Well, a lot of people in the touristy areas speak English. Okay, but if you're going to a smaller town you might need to know some Italian.

Speaker 1:

Okay, so I should probably brush up a little.

Speaker 2:

Yeah, at least learn some basic phrases, okay, okay, so I should probably brush up a little. Yeah, at least learn some basic phrases, okay, and get a good translation app.

Speaker 1:

That's a good idea. What about the renovations?

Speaker 2:

Okay so.

Speaker 1:

And pretty handy yeah, but like restoring a really old Italian house.

Speaker 2:

It's a different beast.

Speaker 1:

It's a whole other level. You'll need to find contractors who know what they're doing. Okay, so people who are familiar with, like the local building codes and stuff.

Speaker 2:

Exactly and who know how to do that kind of restoration.

Speaker 1:

So how do I find someone like that?

Speaker 2:

Well, you got to get multiple quotes.

Speaker 1:

Okay.

Speaker 2:

Check their references. Make sure you can communicate with them.

Speaker 1:

Right, because of the language barrier. Yeah, and we can't forget about those deadlines.

Speaker 2:

Oh yeah, the deadlines are important.

Speaker 1:

They have a specific time frame.

Speaker 2:

Yeah, you got to start renovations within a year of buying the place and finish them in three.

Speaker 1:

So you really got to have a plan, yeah.

Speaker 2:

You got to have a timeline and a budget.

Speaker 1:

Yeah, before you even start.

Speaker 2:

Yeah, before you even commit.

Speaker 1:

Okay, speaking of budget.

Speaker 2:

Yeah.

Speaker 1:

We talked about renovations, but like what about just living there?

Speaker 2:

Right, you got to think about all the costs.

Speaker 1:

Like flights and moving and furnishing.

Speaker 2:

You got to think about all the costs Like flights and moving and furnishing, yeah, and just like everyday expenses.

Speaker 1:

Groceries and utility.

Speaker 2:

Yeah, transportation, health care, all that.

Speaker 1:

OK. So it's easy to get like caught up in the excitement.

Speaker 2:

Oh yeah.

Speaker 1:

Of the cheap house.

Speaker 2:

It's a good deal.

Speaker 1:

Yeah, but you got to think about all that other stuff. Yeah, research the cost of living For that specific town.

Speaker 2:

Yeah, in that region.

Speaker 1:

Because it could be different.

Speaker 2:

It varies a lot.

Speaker 1:

Okay, so we've got legal stuff language renovations, living expenses. What about, like, the social aspect?

Speaker 2:

Oh yeah, that's important.

Speaker 1:

Like moving to a new country.

Speaker 2:

It's a big adjustment.

Speaker 1:

Especially a small town.

Speaker 2:

Yeah, you're going to want to research the culture.

Speaker 1:

Okay.

Speaker 2:

The customs, the traditions.

Speaker 1:

Learn a few phrases. Yeah, try the local food, go to events, really immerse myself. Yes, the more you integrate the better. Okay, so it's all about embracing that Italian sense of community, exactly. Speaking of community. I kind of like that these towns are small and close-knit.

Speaker 2:

Yeah.

Speaker 1:

But what if I'm someone who likes the city Right? Am I going to feel stuck?

Speaker 2:

That's a good question. It really depends on you.

Speaker 1:

On my personality.

Speaker 2:

Yeah, and what you're looking for.

Speaker 1:

Like if I need that hustle and bustle.

Speaker 2:

Yeah, if you need the energy of the city.

Speaker 1:

Then a small town might not be right for me.

Speaker 2:

Yeah, you might feel bored. But if I want peace and quiet, yeah, if you want a slower pace of life, then a small town could be perfect.

Speaker 1:

Yeah, it's all about finding the right fit.

Speaker 2:

Okay. What about safety? Oh yeah, Is Italy safe?

Speaker 1:

Especially for, you know, foreigners.

Speaker 2:

Yeah Well, italy's pretty safe overall. Okay, especially those small towns. Okay, low crime rate.

Speaker 1:

So I don't have to worry too much.

Speaker 2:

You should always be careful, of course.

Speaker 1:

Right Like be aware of my surroundings.

Speaker 2:

Yeah, basic stuff.

Speaker 1:

Okay, good. What about health care?

Speaker 2:

Italy has national health care.

Speaker 1:

Okay, so everyone's covered.

Speaker 2:

Yeah, all residents.

Speaker 1:

Including foreigners.

Speaker 2:

Including foreigners.

Speaker 1:

But like I don't speak Italian, that well.

Speaker 2:

Yeah, navigating the system can be tricky.

Speaker 1:

So what should I do?

Speaker 2:

Well, research your options. Okay, Maybe think about getting private insurance.

Speaker 1:

Okay.

Speaker 2:

Just in case.

Speaker 1:

And find some English-speaking doctors.

Speaker 2:

Yeah that's important.

Speaker 1:

And like know what to do in an emergency.

Speaker 2:

Exactly.

Speaker 1:

Okay, so we've talked about a lot of the practical stuff.

Speaker 2:

Yeah.

Speaker 1:

But for a lot of people, this is about more than that.

Speaker 2:

It's about the lifestyle.

Speaker 1:

Yeah, it's about like a different way of life.

Speaker 2:

It's about the Italian way of life.

Speaker 1:

The food, the art, the history, the people. Yeah, it's about slowing down.

Speaker 2:

Yeah, enjoying the moment, yeah, living in the present.

Speaker 1:

It's that La Dolce Vita feeling.

Speaker 2:

Exactly.

Speaker 1:

But like how do you actually do that?

Speaker 2:

How do you live it?

Speaker 1:

Yeah, how do you go from being a tourist to actually like living that way?

Speaker 2:

That's a great question and that's what we're going to talk about next time.

Speaker 1:

Okay, so in the next part of our deep dive we'll get into like the actual cultural stuff.

Speaker 2:

The details of daily life.

Speaker 1:

Yeah, like the etiquette.

Speaker 2:

Yeah, how to connect with people?

Speaker 1:

How to really live like a local.

Speaker 2:

Yeah, how to embrace that Italian spirit.

Speaker 1:

Perfect, so stay tuned for part three.

Speaker 2:

Yeah, it's going to be good.

Speaker 1:

All right, so we're back for the last part of our deep dive into Italy's one dollar homes.

Speaker 2:

Yeah.

Speaker 1:

We've talked about, like all the practical stuff, the costs, the potential problems, right, but now I want to get into like, what makes this so appealing, like what does it actually mean to live la dolce vita in Italy?

Speaker 2:

Yeah, it's not just about the house.

Speaker 1:

Right, it's about the whole lifestyle.

Speaker 2:

It's about the culture. Yeah, like Italians, they really value connection and beauty and just enjoying life.

Speaker 1:

So how do you actually do that? How do you go beyond being a tourist Right and actually like integrate into that way of life?

Speaker 2:

Well, first you got to embrace this idea of il bel farniente.

Speaker 1:

Il bel farniente, yeah, it means like the beauty of doing nothing, the beauty of doing nothing.

Speaker 2:

Yeah, it means like the beauty of doing nothing.

Speaker 1:

The beauty of doing nothing.

Speaker 2:

Yeah, italians are really good at like slowing down enjoying a long meal having a conversation that goes on for hours and just like being in the moment.

Speaker 1:

But that's like a huge change for a lot of Americans, like we're so used to being busy all the time.

Speaker 2:

Yeah, we're all about productivity.

Speaker 1:

Yeah, so how do you make that shift?

Speaker 2:

It's a process you know Okay. But it's worth it. You got to, like, reevaluate what's important.

Speaker 1:

Okay.

Speaker 2:

And learn to appreciate the little things.

Speaker 1:

Like, instead of rushing through dinner, I actually sit and enjoy it.

Speaker 2:

Yeah, you taste every bite. You talk to the people you're with.

Speaker 1:

So it's like quality over quantity.

Speaker 2:

Exactly.

Speaker 1:

Connection over achievement.

Speaker 2:

Yeah, and food is a big part of that.

Speaker 1:

Okay.

Speaker 2:

Like in Italy, meals are sacred.

Speaker 1:

Oh yeah, I've heard about that.

Speaker 2:

It's not just fuel.

Speaker 1:

You know it's a social thing, so it's about more than just the food.

Speaker 2:

Yeah, it's about family and friends and community.

Speaker 1:

Okay, so what are some things our listeners should know about Italian food culture?

Speaker 2:

Well, be prepared for long meals. Okay, lots of courses and lots of people.

Speaker 1:

Yeah.

Speaker 2:

Like multi-generational gatherings. Yeah, don't be afraid to try new things. Okay, and talk to everyone and always compliment the cook.

Speaker 1:

Okay, that's important.

Speaker 2:

It's good manners.

Speaker 1:

Okay, so put away my phone. Yeah, brush up on my Italian. Yeah, brush up on my Italian, yeah, and get ready to eat. Exactly. What about other social stuff, like parties and things? Yeah, like, are there any like customs?

Speaker 2:

or rules I should know about. Well, italians are usually really friendly, but there are a few things to remember. Okay, always say hello with a handshake or a kiss on both cheeks.

Speaker 1:

Even if I don't know them.

Speaker 2:

Even if you just met.

Speaker 1:

Okay.

Speaker 2:

And if you're going to someone's house, bring a gift.

Speaker 1:

Like, what kind of gift?

Speaker 2:

Flowers or wine or chocolates.

Speaker 1:

Okay, so it's all about being respectful and showing you care.

Speaker 2:

Yeah, exactly.

Speaker 1:

What about communicating? I've heard that Italians are really expressive.

Speaker 2:

Oh yeah, they use a lot of hand gestures and facial expressions and body language.

Speaker 1:

So I shouldn't be afraid to do that too.

Speaker 2:

No, join in, it's fun.

Speaker 1:

Okay.

Speaker 2:

And don't be surprised if people interrupt each other.

Speaker 1:

Oh really.

Speaker 2:

Yeah, or talk really loud.

Speaker 1:

Is that rude?

Speaker 2:

No, it's just how they're passionate.

Speaker 1:

So I have to match their energy Exactly. I can do that.

Speaker 2:

We can't talk about Italy without talking about fashion.

Speaker 1:

Oh yeah, italians love fashion. They always look so good, they do.

Speaker 2:

Do I need, to like, buy a whole new wardrobe?

Speaker 1:

Well, you don't have to go crazy, okay, but they do dress up, even for casual stuff.

Speaker 2:

So maybe leave the sweatpants at home.

Speaker 1:

Okay.

Speaker 2:

You know, try to look put together.

Speaker 1:

So I got to embrace that Italian style.

Speaker 2:

That's sprettura.

Speaker 1:

Sprettura.

Speaker 2:

It means like effortless elegance.

Speaker 1:

Okay, so easy chic.

Speaker 2:

Yeah, something like that.

Speaker 1:

What about getting around? We've talked about these towns being walkable.

Speaker 2:

Yeah.

Speaker 1:

But what if I want to go somewhere else?

Speaker 2:

Public transportation is pretty good.

Speaker 1:

Okay.

Speaker 2:

Especially the trains.

Speaker 1:

Okay.

Speaker 2:

But if you want to explore, you might want a car. But if you want to explore, you might want a car. Okay, but the roads can be narrow. Oh really, and parking can be interesting.

Speaker 1:

So I gotta be prepared for an adventure.

Speaker 2:

Yeah.

Speaker 1:

Okay, I think we've covered a lot of the practical stuff.

Speaker 2:

Did a basic.

Speaker 1:

But I want to go back to that dolce far niente thing.

Speaker 2:

The sweetness of doing nothing.

Speaker 1:

Yeah, it sounds great, but how do I actually do it without feeling lazy?

Speaker 2:

Well, it's about changing your mindset. Okay, it's not about always doing something, it's about just being. Okay, enjoy the walk, don't worry about the destination.

Speaker 1:

Okay.

Speaker 2:

Savor your coffee without looking at your phone. Yep Spend time with your loved ones.

Speaker 1:

So it's about appreciating the moment.

Speaker 2:

Exactly the mindfulness. Yeah, you can start practicing now.

Speaker 1:

Oh, really, like before I even move.

Speaker 2:

Yeah, take a walk, just to walk, okay. Enjoy a quiet cup of coffee, okay. Hang out with friends, okay, so just slow down.

Speaker 1:

Yeah, All right. So for our listener who's ready to trade the hustle and bustle for La Dolce Vita. Final piece of advice.

Speaker 2:

Okay, be open-minded, be curious and be patient. Okay, you know, embrace the challenges and the rewards of a new culture. Learn Italian, talk to the locals. Enjoy the food.

Speaker 1:

Yeah.

Speaker 2:

And don't be afraid to slow down and enjoy the simple things.

Speaker 1:

That's great advice. I think we've given our listeners a lot to think about yeah, from actually buying and fixing up a house to like the whole Italian way of life.

Speaker 2:

Yeah, it's a big decision.

Speaker 1:

Yeah, it's not just buying a house, it's like a whole new life.

Speaker 2:

Yeah, it could be.

Speaker 1:

And who knows, maybe you'll discover something about yourself you never knew. That's the best part. So, if you're ready for a change, if you want something different, maybe Italy's calling you.

Speaker 2:

Maybe it is.

Speaker 1:

All right, that's it for our deep dive into Italy's $1 homes. Thanks for joining us and ciao.

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