This 41-year-old Atlanta mom couldn't afford a home in the US — so she bought one in Italy for $62K and says she only needs $450K to retire now. Here's why it's so affordable

Synclair found it's 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 looked into purchasing a home in Atlanta, especially since mortgage rates had plunged. However, the homes in her desired neighborhoods were still out of her price range — going for upwards of $800,000 by 2021.

With a budget of $450,000, Synclair began looking at properties outside of the U.S. and discovered Mussomeli, a Sicilian town known for selling abandoned homes for just 1 euro.

With the help of a real estate agency, Synclair managed to find a fixer-upper in the town that didn’t require quite as much work. She’s budgeted around 20,000 euros ($21,000 U.S.) for repairs and renovations, which included converting the garage on the ground floor into a living room and bar area and adding another bedroom and bathroom.

In addition to paying less for a home, Synclair’s everyday living expenses in Italy are also much less expensive than what she’d have to cough up in the U.S.

In Atlanta, where she still lives part-time, she spends around $2,635 a month on rent, utilities and internet, and $1,165 on her car payments and gas. In Sicily, her utilities and internet add up to just $258 a month, while she paid $389 for a car rental and gas in March (noting 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.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

SmartFinancial can help you do just that. SmartFinancial’s online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

Why she plans to retire in Italy

Thanks to heavy inflation and high interest rates, plenty of Americans are rethinking their retirement plans — or whether they’ll be able to retire at all. Experts typically recommend you start saving for retirement as early as possible, so that your money has more time to grow.

Make sure you’re growing your funds with steady investments in a tax-advantaged account, and perhaps talk to a financial adviser if you need some help with your retirement planning.

Synclair didn’t start actively saving money until she hit her 30s when she decided to automate weekly transfers from her checking to her savings account, and increased the diverted funds whenever she exceeded her business goals.

As of October, she’d amassed about $14,000 in savings, $33,000 in a Roth IRA and $950,000 in a brokerage account.

“If I was to retire in the U.S., I would need at least $2.5 million to retire comfortably. That’s taking today’s inflation in consideration,” she said.

She says she’ll only require about $450,000 to retire in Sicily.

“If I was to live here and live a life of eating out regularly, travel, shopping, etc., I only need about $18,000 a year, and that will be with money left over.”