House for 1 euro in Spain: an advantageous offer or a deception?

A few years ago, potential investors around the world were excited by the news that houses and even entire villages are being sold in Spain for 1 euro. Some took it as a joke, while others began to ask about the terms of such a purchase. As it turned out, these offers were indeed true and available to both Spanish buyers and foreign investors.

Distinguishing features of such objects

For 1 euro in Spain you will not be able to buy a house in a livable condition. At this price, only abandoned properties in villages where most of the infrastructure is destroyed are being sold. Such properties appeared in time when young people began to massively move to big cities, agriculture ceased to need a large number of workers, and some farms were completely shut down. This translated to the collapse of many houses in remote villages.

Quite often in ads with cheap and abandoned properties we may find small houses. Usually they have broken windows, no doors, sometimes there is no roof. In some cases, you can see structures that cannot be rebuilt due to a significant deterioration in the condition of the materials of walls and floors.

On the one hand, it may seem that it is quite profitable to buy such a house for 1 euro. But on the other hand, it is better to familiarize yourself with the terms of such a deal in advance. The fact is that the person who pays for the ownership of such object undertakes responsibility to rebuild it, as well as equip the adjacent infrastructure at his own expense. Typically, for this purpose he is given about 3 years. On average, the cost of all the necessary work reaches 200 thousand euros. For such a price in Spain, you can buy quite decent housing, ready for instant check-in. Therefore, the profit when buying 1 euro houses in euros is rather relative.

Who Buys 1 Euro Homes?

Despite the fact that today abandoned houses are no longer sold for 1 euro (their cost is usually several thousand euros), the name of “1 euro home” is used everywhere. At the moment, both the Spaniards and foreign buyers are investing in such objects.

Most often, the reasons for the acquisition are the following:

• Desire to invest in a tourist village to earn money. Since most of the abandoned villages look very authentic, many investors choose them as business properties. After repairing and arranging the infrastructure, they arrange expensive tours to these places. In this case, the investment can pay off very quickly.
• Finding a place for retirement. Local and foreign investors choose deserted villages in order to acquire a house in some of the most peaceful places. They plan to move there when they retire, or visit periodically for leisure purposes.
• Building a farm. Many potential buyers who want to open their own business in the field of agriculture do not want to spend large sums on expensive land. In small villages, for a relatively small price, they can organize a small farm for themselves or for commercial purposes.

You may be able to find real estate objects from this category on the internet. There are specialized Spanish agencies dealing exclusively with such offers. By contacting them, you can get complete information about each house and choose the right region for you.