I have been seeing social media advertisements inviting investments in the way of buying houses in derelict or small and not-so-well-to-do towns. These advertise the price to buy as under $100 or 100 Euro but need some form of upliftment of the property and the town.

  1. How does this work?
  2. How easy is it to do this from outside these countries (Italy, Spain, etc)?
  3. Any government or taxation issues to be aware of?
  • Depends. Maybe you will start getting taxed, maybe you have to live there. If you think you've found a way to 'chest' the system, you probably haven't. Always read the label. – Nathan Cooper Apr 18 '19 at 21:20
  • Cannot speak about how Italy or Spain handle these kinds of things but you'd definitively want to find out what financial obligations (debts) you buy with the property. – cbeleites supports Monica Apr 20 '19 at 12:10

I only can tell you about a scheme that was running in the UK (and shown on TV, that's how I know).

You could get a property very cheap. Actually, you paid, and a property in a street was randomly assigned to you, so it could be in a bad state if you were lucky, and a worse state if you were less lucky.

You had time (I think a year) to renovate the house and move in. If you didn't renovate the house to a livable standard and moved in, the house was gone, and with it all your investment.

These schemes are usually designed to help local people find a home, not to allow speculators to make money.

  • thank you for the response. Yes you're right about the renovation and the general agreement to improve the state of the property and thus, the neighborhood. However, the scheme is to invite investments because the local state of the prop/town is not so good. Often it looks like the economy is down. So it is not quite for locals only. I'd be interested in knowing any government impediments/requirements of the investor like "you must visit once every often" or "you must invest through XYZ realtor", etc. – perennial_noob May 2 '19 at 19:55

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