France, Italy, Portugal: Dream Homes for Under $150,000

In today’s crazy world, the idea of a bolt hole somewhere that’s warm and sunny all year round (where you don’t have to worry about spiraling heating costs) or near the beach, or up in the mountains away from it all has become very appealing to many folks.

It’s no secret that house prices in the U.S. have soared. The typical U.S. home value at the beginning of 2020 was about $230,000, according to Zillow data. As of May 2023, it has shot up to more than $330,000—that’s a 43% rise in just two years. For desirable real estate, you’re talking much, much more. It’s no wonder that the percentage of Americans who still think it’s a good time to buy has hit its lowest point since the 1970s.

Add to that rising inflation, the rapidly rising cost of building materials, a dearth of inventory, as well as rising competition from investors, and the future looks even bleaker for home buyers.

The solution? Look overseas. While real estate has gotten scarcer and prices have risen in other parts of the world too, it’s still possible to find that perfect condo by the beach… a cottage in a tranquil village… or a bolt hole in a beautiful hilltop town. You just need to look beyond U.S. borders.

I spend my summers in Europe, scouting as much as I can from my home in Portugal. I love it here. Europe’s pleasant summer weather—with warm temperatures and longer daylight hours—along with its rich cultural heritage, iconic landmarks, and diverse gastronomy makes it an incredible place to spend time. And also a great place to hunt for real estate.

Sure, Europe’s top tourism spots are expensive, but get off the beaten track and it’s not hard to find incredible opportunities. I’m talking about homes in stunning places, where the cost of living is less, the weather is good, the views are spectacular, and the living is easy. A base from which to hide out, relax, and explore the cultural riches of the Old World… for $150,000 or less.

Here are three places to start looking:

Portugal’s Hidden Hill Towns

Until recently, Portugal was a secret. Sure, millions of tourists visited the beaches of the southern Algarve, which gets 300 days of sunshine a year, but beyond that the country was pretty unknown.

I’ve been scouting here for years. I’ve spent many months on the ground and I’ve bought here. Along with my home on the Silver Coast, I also bought an investment property on the Algarve, which I’ve since sold for six-figure gains.

I’ve found many opportunities for serious real estate investment in Portugal, beginning after the crisis of 2008/09. But if your budget is around $150,000 and you just want a dreamy property… there’s so much on offer.

Portugal has mountain villages and hidden hill towns where time slows down and the food is farm fresh every day. There are rich rolling hills, sun-drenched vineyards, and vibrant little university towns. The cost of living is incredibly low, the people are so polite and friendly.

The hill town of Castelo de Vide in eastern Portugal is a place that’s charmed a number of my scouting team. It’s one of the best preserved medieval towns in Portugal. A jumble of red-roofed, whitewashed houses cling to the side of lush slopes in the foothills of the Serra de São Mamede. You’ll find walking trails through pine and beech forests. Olive groves are everywhere. It’s a part of the world perfect for escaping and relaxing. And while it feels a little stuck in time, it has plenty going on, with lots of stores, cafés, and restaurants too.

It’s here I came across a spacious two-bedroom house for €125,000 ($135,071). The house is whitewashed like everything in this eagle’s nest of a town. Huge granite slabs frame the doorway and bright red roses climb the wall. And, importantly, the house was restored in 2001, so it’s move-in ready.

When buying historic homes, go for a place that’s already been renovated. Don’t take on the work, the costs, the hassles. Let someone else do that and reap the rewards.

But if you like a challenge, there are numerous fixer-uppers available. I came across a large three-bedroom townhouse with a roof terrace listed for just €50,000 ($54,028). But you could expect to spend that again restoring it.

The Overlooked South of France

Whether you dream of a pied-à-terre… a rambling farmhouse… or a village house wrapped in wisteria-hung memories of long ago, France has something for you.

There are scores of hidden corners of France for bargain hunters. But my favorite is the Languedoc region, right next door to Provence.

Once known as the “poor man’s Provence” the Languedoc region of southern France is slowly arriving as a destination. In fact, for six years pre-pandemic, tourist numbers here rose by an average of 17% a year.

I scouted the Languedoc in August 2019 searching for a profitable property to use for a few months of the year out of high season, when the weather’s still warm (this was before I decided on Portugal’s Silver Coast). I was also interested to see how this part of southern France stacked up in terms of value and opportunity against its famous neighbor, Provence.

The Languedoc’s Mediterranean coast is part of France’s sun belt, and its long sandy beaches are still fairly uncrowded. Inland, you’ll find wild mountain ranges, dramatic gorges, and stunning hill towns that many Francophiles will tell you are more authentic than what you’ll find in over-touristed and over-priced Provence.

If your idea of France is fairytale castles perched on rugged mountain peaks and medieval villages, with amazing food and local wine, then you’ll find everything you want in the Languedoc. And if you yearn for Mediterranean views, long beach strolls and fresh seafood, then the Languedoc has that, too.

Many foreigners arrive in the Languedoc, fall in love with a historic home, and pay handsomely for impressive renovations that will never be reflected in the price when they sell. But there are plenty of turn-key renovated properties available. You need just swoop in and enjoy.

For instance, I found a completely renovated home with two bedrooms and two bathrooms for €99,000 ($108,050). The house is near the Olargues, described as one of France’s most beautiful villages. Set in the Regional Natural Park of Haut-Languedoc, its preserved buildings date to the medieval period. You’ve got lakes, rivers, and waterfalls on your doorstep plus a weekly open-air market (along with cafés, restaurants, and shops) in Olargues.

If you’re after something a little more grand, you can even own a two-bedroom, two-bathroom apartment in a converted 18th-century château near the town of Olonzac for €125,000 ($136,427). The château offers high ceilings, original floor tiles, and impressive fireplaces, along with magnificent shared common areas, including a walled garden.

Italy’s Hidden Heartland

The cradle of the Renaissance, the birthplace of opera, the country that gave the world Italian food… Italy is jammed with treasures, and many of its cities are themselves works of art.

It also has many small art towns, medieval gems set amongst sun-drenched vineyards, olive groves, and wildflower meadows… gentle wooded hills crowned with castles and medieval villages…

In Italy, you don’t need a lot of money to live the sweet life. You have sun, a vast cultural heritage on your doorstep, and infinite variations of the most delicious food in the world. Just as well, because Italy is a chronic economic underperformer, stuck in almost constant political paralysis, with a per capita income that has been steadily declining compared with its European peers.

That’s why all over Italy you’ll find remarkably low-priced real estate. Look off the beaten path, away from what I call the “George Clooney real estate”—the kind that attracts the global elites—and you’ll uncover truly deep value.

If you’re looking for a taste of Tuscany without Tuscan price tags, look next door to Umbria. It’s every bit as beautiful, with rolling hills and vineyards, medieval hill towns, and fantastic food.

Umbria is Italy’s green heart, and sinfully overlooked. But that means you can find real bargains here. For instance, I came across a fully renovated historic home in the center of San Feliciano, a village on the shores of Lake Trasimeno, for €140,000 ($151,448). The property of over 1,000 square feet, has its original stone walls, large wooden beam ceilings, and includes a cellar. You’ll find numerous beaches along the lake here and the location is central for exploring the stunning medieval towns in the vicinity, including Perugia and Assisi.

Like France, there’s also the opportunity to live in your own castle. Surrounded by centuries-old olive groves and immersed in the tranquility of the green Umbrian hills, I uncovered an opportunity to own an apartment within a castle that dates back to the early Middle Ages—for just €115,000 ($124,404). The structures have been completely restored, maintaining the terracotta floors and stairs, exposed wooden beams and brick vaults. From the castle’s eagle-eye position, it has extraordinary views over the Umbrian landscape, including Lake Trasimeno.

Note: Unless I say otherwise, I haven’t seen the properties mentioned above in person, nor have I conducted any due diligence (always do your own due diligence on any real estate). The properties above were all available as of the end of May 2023.