$1 homes in Italy are still a viable option for Aussies to beat the housing crunch at home. Picture: Realtor
Imagine basking in the sun at your villa in the quaint Italian village of Ollolai or sipping a spritz and tucking into pasta in an Italian town literally called Penne — and doing it all for the cost of a convenience store coffee. Sounds pretty good, right?
Italy’s One Euro House Program has made headlines a number of times in the last few years as people consider the possibility of snapping up a home for the equivalent of AUD $1.67.
It’s a concept particularly appealing to Australians struggling to break into their own country’s booming property market because the Italian government places no restrictions on Aussies looking to take advantage of the program.
With Australian interest rates copping multiple hikes in 2026 alone and uncertainty building over the federal government’s changes to negative gearing and capital gains taxation, an Italy home could be the ideal alternative for people willing to make the leap.
The choice seems obvious: Put yourself under huge financial strain to pick up a cramped apartment for $1 million in Sydney or enjoy life in an Italian villa you’ll gradually renovate after buying it for $1.67.
Rae Knopik bought one of the Italy homes after stumbling across them while living in Canberra. Picture: Instagram
But those who have backed in their Italian adventure can have differing experiences, with many saying the reality of buying a one euro home is far from idyllic and much more expensive than anyone realises.
For US woman Rae Knopik, however, it was a dream come true.
Knopik was living in Canberra, Australia, at the peak of the covid pandemic when she and her partner stumbled across the Italian homes by chance on YouTube.
“My family originates from Siciliy way back in the say and part of life journey is to reclaim that part of my culture,” she said on Instagram.
“We threw our hat in the ring and thought ‘why not?’ It turns out that 60,000 people applied for just our house (in Troina) and I had no idea of this at the time.
“All of a sudden, like 12 months go by, and they’re like ‘you won the house’.
“Troina went from a listing online to a place that completely reshaped our lives to the point where we’re now getting married there. It’s a place we return to, are investing in and building a life around.”
Rae Knopik is loving her Sicilian adventure but says there is plenty of fine print of which people should be aware. Picture: Instagram
What are Italy’s $1 home programs?
Due to an ageing population and urban migration, some of the country’s quaintest towns have an empty-home problem. The towns are looking for people to purchase — and renovate — unoccupied and abandoned homes.
To drive interest in the properties, many of these towns are advertising homes for $1. These municipalities are hoping an influx of new ownership could help jump-start local economies and provide needed tax funds for public services.
The town of Ollolai, on the island of Sardinia, for example, is encouraging Americans to “start building your European escape.”
Meanwhile, in Penne, Mayor Gilberto Petrucci hopes to revive his “ghost town” of a city by offering a fresh handful of properties to eager expats looking to start a new life just 35 minutes from the coast.
“There are potentially over 40 empty buildings in town looking for new owners, and they’re all located in the historical centre, which has been declining since families started emigrating decades ago,” he told CNN Travel.
Penne’s latest offerings ask that buyers simply commit to completing the restoration of their home within three years after buying it. No deposit required — which is a big deal, since buying a home for $1 is rarely the case in most places in Italy.
Ollolai is another region in Italy trying to entice people with cheap homes. Picture: Realtor
How do I find available $1 properties in Italy?
Various websites catalogue what’s available and where, but most strongly recommend that you visit the location before you buy.
Homes are in various states of disrepair: Some need relatively minor fixes, but others might need major renovations and updates.
Some homes might look postcard-cute, but buyers who don’t bother visiting run the risk of walking into a scary money pit.
Top regions for deals
Some areas of the country are offering more affordable housing than others. The bulk of available properties is in Sicily, Umbria, and Tuscany, but you can find homes around the country.
For example, if you’re looking in Sicily, villages such as Gangi, Salemi, Mussomeli, and Sambuca have all started $1 initiatives to bring in the next generation to the area.
If you’re looking in Tuscany, consider looking at smaller hamlets well outside of Florence, like Montieri or Fabbriche di Vergemoli.
The Umbria region, located directly east of Tuscany, has towns such as Cantiano that have had $1 homes in the past.
And in Sardinia, Ollolai is still welcoming new tenants.
Ollolai on the island of Sardinia. Picture: Google Maps
The catch: Why a $1 villa costs thousands upfront
While many homes are listed at $1, the actual investment you’ll need to make is much more.
The deposit: To start, municipalities require an upfront deposit of $5,000 to be considered for the home, along with a $15,000 renovation deposit. Those funds are put in escrow while you wait to see if you’ve been granted a home. If you’re given the chance to buy a home but don’t complete your renovations within a set period of time, you’ll lose your deposit.
Legal fees and taxes: Beyond the deposits, you’ll also be responsible upfront for paying any legal fees that might be incurred in the transfer process, including property and land registration taxes, along with VAT and notary fees. Many buyers and agents in Italy say it can actually be cheaper to look for houses priced below $50,000 that don’t come with specialised stipulations.
The strict timeline: Once you buy a home, you’re locked in and required to submit a renovation plan to the local council and start work on the property within two months of purchase. You’ll have to complete your renovations within three years or risk losing the home altogether.
Because most of these homes are hundreds of years old, they could require a major investment. Foundations may be crumbling, plumbing may be non-existent, or the roof may need to be completely replaced. In some cases, buyers have had to spend tens of thousands of dollars to get their homes in liveable condition, but that’s the gamble you’re taking on a $1 property.
Aside from the material cost of renovations, you’ll also want to factor in the cost of either overseeing the renovation project or hiring someone to do it for you.
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