1€ Houses In Germany
The Italian government offers the possibility to buy real estate for just a single euro. In this article we will see if this option is also available in Germany, so you can buy 1€ houses in Germany.
- Adjusted for inflation, the German real estate market grew by 9.6% in 2020 and 14.2% in 2021
- In Italy, houses are sold for 1€ so that they will be renovated by their new owners
- German real estate offers for one euro means either a price on demand, a bidding process, or a forced auction
- GermanReal.Estate offers the possibility to buy fragments of a property for only 1€
Introduction: The Real Estate Market in Germany
The real estate boom of recent years has passed almost no one by and knows almost no bounds. Just one look at the value development of the last few years is enough to recognize the boom. In 2020, inflation-adjusted real estate prices rose by an average of 9.6%. In the following year 2021, the average inflation-adjusted real estate price increase was 14.2%. More on this is in the graph below. This undoubtedly points to fundamentally higher real estate prices in Germany.
If you pay attention to this development, then the article: “Germany also gives away houses for 1 euro, and you should think about it“, seems even more unusual. Here it is claimed that in Germany is a possibility to buy a house for just one single euro. How is that supposed to be when real estate prices are rising practically without limit? This is exactly what we will find out in this article.
Origin of 1 Euro houses
The origin of the idea of one euro houses is in Italy. As in any other country, certain cities lose lucrativeness. This usually results in low in-migration, if not out-migration from the respective city. In Italy, this is for instance the case in Sicily. There, the Italian government could simply accept the outflow. The consequence would be that the houses, which are no longer inhabited, would slowly vegetate and ultimately decay.
In order to prevent this decay of the housing units, the Italian government came up with a solution. They had the idea of putting houses up for sale for a purchase price of just one single euro. Both the land and the house standing on it. These can now be purchased by the Italian population. However, since no one likes to live in a run-down house, or one that is very difficult to rent out, the government hopes that the buyer will renovate the purchased house.
If many buyers are found and they subsequently renovate the houses, this will have a positive impact on the location. To return to the example of Sicily. There, the government hopes that the renovation will increase the attractiveness and popularity of the area in the future. This should serve the local population, but also boost tourism in Sicily again. In the long term, the entire Italian economy should thus benefit from the one-euro houses.
The method of the one euro houses seems at first somewhat unconventional. Nevertheless, the potential of this idea might be quite large. This can massively increase the attractiveness and popularity of a location in a short time. However, someone who lives in Germany is probably relatively indifferent to this possibility. So what exactly does this opportunity have to do with one-euro houses in Germany?
Examples of 1€ Houses in Germany
To get an overview of whether one euro houses in Germany are for sale, it is a good idea to first take a look at a real estate platform. For this, a filter can be set to the price on ImmoScout24 to “up to 1€“. Surprisingly, many results are displayed, but they do not necessarily correspond to a one-euro house. What exactly is displayed?
- Price on request: Some of the displayed sales objects are a price on request. This means that the houses are not really sold for one Euro. Rather, these are real estate agents who want to get much more attention for their object through this trick. This can be concluded from the fact that among the results are villas that are very unlikely to be sold for less than a seven-figure sum.
- Bidding process: Other objects that are displayed are bidding procedures. Here the starting price is only one euro for a house, nevertheless, this may be doubted. This is because these can also be solid houses, which can be based on a circumstance, for example, the death of the owner. If this guy has no inheritor, the house can be acquired at an auction. And an auction is indeed a bidding procedure.
- Forced sale (Foreclosure): Similar to the bidding procedure, the forced sale also takes place. The forced sale is an auction too. However, the object to be acquired may be accompanied by additional obligations. For example, if you buy a run-down house for little money, the contract may also stipulate a date by which you must demolish or renovate the house. Thus, a few thousand euros can quickly become a few tens of thousands, perhaps even hundreds of thousands.
Ultimately, all the houses that are offered for just one euro, are offers that come with much more cost. In addition to the cost, it is usually also useful to bring the necessary experience, for example, if many renovations are due. In general, it is therefore almost impossible to buy a house with real costs of only one euro. However, are there perhaps other possibilities to get new houses for at least partially one euro?
How much real estate can you afford? Let’s find out together.
Conclusion: Real Estate Security Tokens for 1€
One way you can buy a house for just one euro has remained unmentioned until now. The opportunity of real estate security tokens. For this, the company GermanReal.Estate uses a technology based on a blockchain. This divides a purchased property into one euro fragments, which you can then purchase. Thus, you can purchase fragments of a property, as you can do with ETFs, stocks, and cryptocurrencies.
Even if none of the above options offers you a house for a real value of just one single euro, you can still make good profits with one or the other method. The cheapest way to do this is with real estate security tokens. Here you invest once an amount and can acquire thus a part of real estate. The more you invest, the more of the property you can own. In addition, no future renovation or other costs are due for you.
If you too want to move forward with your real estate investment, and either need help with financing your property or want to learn more in detail about real estate security tokens, feel free to book a free meeting with us at your convenience here.