Remember the Italian avalanche that buried a hotel and killed 29 people 12 days ago?
I was 40 miles away at the time, in the city of Sulmona, spending a week in an apartment we had rented from friends who live here in Salem.
These friends (two couples) joined together to buy the apartment a few years ago, and now they not only use it as their own base for exploring Italy on their vacations, they also rent it out through Airbnb.
We were lucky; we got the family and friends rate—just $50 a night.
Here’s a photo of me in front of the Sulmona aqueduct that was built in 1256, with the snow-covered Apennines in the distance.
We also got a lot of snow and some minor earthquakes, which in my mind were unexpected bonuses. Sure, they curtailed some of our plans, but they also provided some great learning experiences!
For example, I learned why my rental car was required to have a set of tire chains in the trunk.
It’s not because the snow is so bad in the area; it’s because the roads aren’t plowed to the standards we’re accustomed to in the U.S.
Furthermore, the sidewalks were rarely cleared at all!
[text_ad]
And I found this amusing, because being a fan of snow shoveling, I was diligent in shoveling a path to the street from our apartment and clearing out my car—but most people didn’t!
They just walked in the street, apparently waiting for the snow to melt!
Granted, the snow often does melt in the town; the period we were there was exceptional. But I was amused, time and again, to watch Italian men trying to drive in and out of snow-clogged parking spots, turning only to the shovel when all else had failed.
Many people didn’t even try.
In any case, as with any Italian vacation, the food and wine were excellent, and the period of rejuvenation did me good.
And if I were in the market for an Italian investment property, I’d certainly consider Sulmona—as well as the entire Abruzzo area.
Property in the town is affordable; a quick look in the window of the local realtor revealed that the average price of an apartment in town was about 130,000 euros.
And while tourists were sparse while we were there, the place is lovely for most of the year, and very accessible as well; it’s just a two-hour ride from Rome.
The Italians we met there claim Abruzzo is the last area of Italy untouched by mass tourism, and while this is partially true, the fact is that we met people from England, the U.S. and Australia in our week there. The Australians also own an apartment in town; they alternate spending six months of the year in Sulmona and six months back in Melbourne.
But the Australians don’t rent out their apartment; he’s retired from S&P, and they don’t need the income.
Our Salem friends, however, like many others, get some additional income from renting out their property—and if all goes well, they’ll eventually have a nice capital gain as well.
But for all these people, international investing is the secondary reason for buying investment property; it’s the reason you tell the banker. The primary reason is that they’ve fallen in love with the region and they want to return there again and again to enjoy life Italian-style.
Unlike foreign stocks, foreign real estate is an asset you can actually enjoy—and share with friends.
But as with any investment, there are risks.
In Sulmona, some of the risks are difficulty establishing clear title, banks wary of foreigners, bureaucracy, inefficient and sometimes crooked officials, and builders who don’t show up or who bill for uncompleted work.
My friends avoided many of those problems by dealing with local residents they had come to trust, and by buying a property that had just been renovated, so there was no need to deal with local builders.
(If you’re interested, let me know and I can give you some contact names.)
But I have no plans to buy investment property in Sulmona—or anywhere else in the world, either, regardless of how good an investment it might be.
For me, additional property would be too much of an anchor, preventing me from visiting new places. And I like new places a lot. Which is why, for me, stocks are the perfect investment; they don’t require any physical maintenance at all.
In closing, here’s a picture of three Maremma sheepdog puppies that were rescued from the avalanche site after being buried for five days.
They’re no substitute for the 29 lost human lives, but they certainly raised the spirits of all involved in the rescue operation.
[author_ad]
