This 41-year-old mom from Atlanta couldn't afford a house in the US – so she bought one in Italy for $62,000 and said she now only needs $450,000 to retire. Here's why it's so affordable
Stephanie Synclair visited Sicily, Italy for the first time with her young son in 2012 and immediately fell in love with the island.
“I always said I could imagine living here, but it was more of a dream,” she told CNBC's “Make It.”
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“I never imagined buying a house here. I don’t know if I really thought it was possible at the time.”
About ten years later, Synclair discovered that her dream could actually come true – and at an affordable price. For about 59,000 euros, or about $62,000 in cash, she bought a 4,000-square-foot, three-bedroom rental property in a small town in Sicily.
Here you can find out how she achieved it and why she also wants to spend her retirement in the picturesque region.
Synclair found that it is cheaper to live abroad
Synclair is a 41-year-old business owner who makes $80,000 a year running her own tea company, LaRue 1680. In 2020, she thought about buying a home in Atlanta, especially since mortgage rates had dropped. However, the homes in their desired neighborhoods were still out of their price range—they would cost over $800,000 by 2021.
With a budget of $450,000, Synclair began looking for properties outside the US and discovered Mussomeli, a Sicilian town known for selling abandoned houses for as little as 1 euro.
Read more: Owning real estate for passive income is one of the biggest myths in investing – but here's how you can actually make it a success
With the help of a real estate agency, Synclair was able to find a redevelopment project in the city that didn't require quite as much work. She has budgeted around 20,000 euros ($21,000) for repairs and renovations, including converting the ground floor garage into a living room and bar area and adding another bedroom and bathroom.
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Not only does Synclair pay less for a house, but her daily living expenses in Italy are much cheaper than what she would have to pay in the United States
In Atlanta, where she still lives part-time, she spends about $2,635 a month on rent, utilities and internet, and $1,165 on car payments and gas. In Sicily, her utilities and internet add up to just $258 a month, while in March she paid $389 for a rental car and gas (though prices can fluctuate depending on the travel season). She also appreciates the access to fresh and affordable produce and baked goods at the local markets in Mussomeli.
Why she plans to retire in Italy
Due to high inflation and high interest rates, many Americans are rethinking their retirement plans – or whether they can retire at all. Experts typically recommend starting saving for retirement as early as possible so your money has more time to grow.
Make sure you grow your wealth by regularly investing in a tax-advantaged account, and perhaps speak to a financial advisor if you need help with your retirement planning.
Synclair only began actively saving money at age 30, when she decided to automate weekly transfers from her checking account to her savings account, increasing the redirected funds whenever she exceeded her business goals.
As of October, she had accumulated about $14,000 in savings, $33,000 in a Roth IRA and $950,000 in a brokerage account.
“If I were to retire in the US, I would need at least $2.5 million to retire comfortably. This takes into account today’s inflation,” she said.
She says she only needs about $450,000 to retire in Sicily.
“If I lived here and had a life of regular eating, traveling, shopping, etc., I would only need about $18,000 a year, and that would be the remaining money.”
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This article is for informational purposes only and should not be construed as advice. The provision is made without any guarantee.