Invest
In a position to buy a €1 European villa? You might be better off looking local instead
Invest
In a position to buy a €1 European villa? You might be better off looking local instead
So, you want to buy a €1 European villa? Here’s what you need to think about before you do.
In a position to buy a €1 European villa? You might be better off looking local instead
So, you want to buy a €1 European villa? Here’s what you need to think about before you do.

For Australians who feel locked out of the property market amid the explosive price growth of recent years, incentive programs that offer European houses for as little as a single euro can feel impossible to pass up.
While there are plenty of terms and conditions worth considering here, Bobby Haeri, co-director of The Investors Agency, told nestegg that those who take up the offer of cheap property should be wary of what they’re signing up for.
“Buyers also need to beware of what they’re buying for the price. Some prices are just associated with a land sale with no housing, so budget plans need to be made for a build,” he said.
Even if the property itself might cost €1, the deed might come with a requirement for the owner to relocate or renovate the property — which can make the real cost significantly higher than it seems.

“I would say, as a general rule of thumb, if a government is giving away blocks of land, this is because people in the population have dispersed over the years,” Mr Haeri said.
If it’s an area where people have dispersed, “then it does not have the fundamentals to be a good investment property”, Mr Haeri said.
Other hurdles here are any maintenance costs, plus the taxes levied against overseas property investors.
Assuming you still want to go ahead, Mr Haeri reminded prospective buyers that it’s unlikely they’ll be able to get financing for any necessary renovations or construction.
“As no Australian lender would finance a construction site overseas, you would need additional tens of thousands of dollars for the renovations or even hundreds of thousands if it’s a full construction of a house,” he explained.
Even then, he added that those who can handle the financing part of the process would be much better throwing it into the local property market instead.
He said: “If you had that kind of money, you would be much better off buying in a blue-chip location in Australia — remembering you can still get into many metropolitan markets for under $400,000 around the country.
“With as little as 5 per cent, you could get lending to buy a piece of real estate in Australia which is in an area which has all the fundamentals for strong growth.”
Still, there’s an exception to every rule.
“If you, however, wanted to buy it as a holiday house, and you were in your 50s or 60s and were already set up financially, it could be an exciting tree/sea change,” he said.
About the author

About the author


Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more