‘Dire at best’: A 44-year-old Chicago woman bought a house listed for $1 in Italy — then had to spend $446,000 on renovations to make it a home. What to consider before buying abroad

The real cost of moving

Relocating to more affordable cities is becoming increasingly common, as rising housing prices across the U.S. put homeownership out of reach for many.

According to Redfin, home prices are projected to grow by 4% by the end of 2025. While the average cost of a starter home in the U.S. is $196,611 nationwide, buyers are looking at price tags of $1 million or more in over 200 cities, according to Zillow.

Though the Italian property was initially on the market for 1 euro, the true cost of Tabbone’s Sicilian dream far exceeded that. She initially expected to spend roughly $40,000 to make the property livable. But shortly after buying the original property, she bought the house next door for about $23,000 to create more living space. In total, she ended up spending $446,000 on renovations over three years.

Living in Chicago with no prior renovation experience, Tabbone faced significant inconveniences and expenses.

“It can be expensive to fly back and forth,” she told CNBC Make It. “I definitely would say it’s the second biggest expense that I had. My contractor was the most expensive thing.”

Despite the financial and logistical hurdles, Tabbone's experience of transforming these properties into spaces she could really enjoy shows how the allure of an affordable property abroad often comes with hidden costs that can go far beyond the listing price.

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Was it worth it?

For Tabbone, buying properties in Italy wasn’t just a financial decision — it was a chance to reconnect with her Italian heritage. But was it the smartest financial move? If her main goal was to escape the high cost of living in the U.S., the answer isn’t so clear-cut.

Tabbone herself acknowledges the unique position she was in.

“Because this renovation took so long, I was fortunate that I did not have to pull from savings,” she told CNBC Make It. “I was able to just kind of, as the invoices were coming in, pay for them because the process has been ongoing.”

But for many Americans, making a similar move might require dipping into savings or even retirement funds — choices that could jeopardize long-term financial stability.

The allure of moving abroad often overshadows practical realities. Beyond the upfront cost of buying a property, there are ongoing expenses like maintenance, property taxes and home insurance.

Visa and residency requirements can also complicate the process of living abroad. For example, tax implications are a critical factor as U.S. citizens are subject to federal tax laws regardless of where they live. This means you’ll likely still need to file U.S. taxes on your worldwide income.

As the IRS warns, “If you are a U.S. citizen or resident alien, your worldwide income is generally subject to U.S. income tax, regardless of where you are living.”

Healthcare is another consideration. While some countries offer more affordable healthcare options, non-citizens may face restrictions or need additional coverage, adding to their overall expenses.

So, is relocating — or even owning a second property abroad — worth it? The answer depends on your circumstances. For some, the dream of having a second home might be better replaced by the flexibility of renting out your property for vacations, which can be more cost-effective and less risky. Ultimately, aligning your vision with your financial reality is crucial before taking the leap.