Have you ever saved for one concrete goal and found yourself following a different, more surprising path?
Couple was saving for their first home in Washington, D.C., but bought an apartment in Italy instead: ‘It’s a pinch me moment’ – CNBC
You read a headline and feel the tug of contradiction: disciplined saving, familiar destination, then a sudden turn toward an apartment across the Atlantic. The story — as reported by CNBC — is simple and complicated at once: a couple who had been putting money aside for a first home in Washington, D.C., chose instead to buy an apartment in Italy. The reaction, “It’s a pinch me moment,” captures the strangeness and joy of accomplishing something big in a way that wasn’t the plan.
This article breaks that story into the parts that matter to you: what happened, why it might make sense, the financial and legal realities you must consider if you think about buying property abroad, and practical guidance that clarifies the path forward. You will get clear, actionable steps and a frank take on the emotional and financial trade-offs of choosing a foreign property over a domestic first home.
Before you continue: the website notice, translated and summarized
You encountered a cookie and privacy notice in several languages when the original article loaded. In plain English, the notice says:
- The website uses cookies and data to deliver and maintain services, protect against abuse, measure engagement, and improve the user experience.
- If you accept all cookies, the site will also use data to develop and improve services, measure ad effectiveness, and display personalized content and ads.
- If you reject all cookies, the site will not use cookies for those additional purposes; you will still receive non-personalized content and ads based on the page content and your general location.
- You can select “More options” to manage privacy settings and visit a privacy tools page for further information.
The multilingual list you saw is simply language options for the site and does not affect the substantive story.
What happened: a clear summary of the CNBC report
You should understand the essence of the story first. A couple, saving for a first home in Washington, D.C., recognized that their priorities, opportunities, or sense of possibility had shifted. Instead of completing the purchase in D.C., they bought an apartment in Italy. The couple described the moment of closing as surreal: “It’s a pinch me moment.” That phrase captures simultaneous astonishment, gratitude, and the wish to confirm reality.
You will want to know the reasons behind such a decision: lifestyle yearning, market considerations, remote work flexibility, family ties, or value chasing in an international market. Whatever the motive, the tale is not only about geography but also about decision-making, trade-offs, and how money interacts with desire.
Why you might consider buying abroad instead of a local first home
You have reasons that are fiscal, emotional, and practical. Buying abroad can feel like an escape and an investment simultaneously. Below are the principal motivations that commonly drive such choices, explained in terms that will help you evaluate whether the move might suit your situation.
- Lifestyle and cultural fulfillment. You might value slower rhythms, historic architecture, proximity to other countries, or the idea of living where food and social life are central.
- Financial considerations. Property prices in some European towns and smaller cities can be lower than in U.S. metros, offering perceived value or rental income potential.
- Remote work and mobility. If you can work from anywhere, you might prioritize a setting that improves quality of life rather than proximity to an office.
- Investment diversification. Owning foreign real estate spreads risk across jurisdictions and currencies.
- Personal ties. Family, romantic attachments, or a desire to honor heritage may make foreign property emotionally significant.
You should weigh these motives against financial stability, long-term plans, family needs, and your tolerance for bureaucratic processes in a new country.
The couple’s likely decision process, and how you might mirror it
It helps to know the typical choices people make in this scenario. You would look at savings, projected monthly costs, mortgage eligibility, and long-term plans. Here’s a simplified decision map you can use as a template.
- Assess savings and debt. You determine what you can put down without depleting emergency funds.
- Compare markets. You research D.C. neighborhoods and target Italian cities or regions.
- Evaluate financing. You check lender requirements at home and abroad.
- Consider residency and tax effects. You learn tax obligations in both jurisdictions.
- Visit and inspect. You travel to prospective properties, often more than once.
- Make an offer and complete purchase. This includes hiring local professionals and finalizing legal requirements.
You may find, as the couple did, that the practical numbers and the emotional pull line up in a way that pushes you to a surprising choice.
Financial comparison: Washington, D.C. versus Italian apartment markets
Comparing the two markets is essential before you commit, because the financial implications are substantial and ongoing.
Note: Property values and costs fluctuate by city and region. Use this table as a framework for comparison; you will need up-to-date local data for concrete decisions.
| Category | Washington, D.C. (example) | Typical Italian City / Small Town (example) |
|---|---|---|
| Typical home price for starter market | Higher median prices; expensive urban core | Lower prices in many towns; prime cities (Rome, Milan, Florence) can be expensive |
| Property taxes / annual rates | Municipal property taxes + assessments | IMU (municipal property tax) variations; many exemptions for primary residence |
| Closing costs | 2–5% roundtrip (varies) | 9–12% all-in common (including notary, registration, agent) |
| Mortgage availability | Readily available to residents and citizens | Available to non-residents but stricter with higher rates and lower LTV |
| Maintenance / condo fees | Variable; moderate to high in city buildings | Often lower in small towns; historic buildings may have higher renovation costs |
| Expected rental income potential | Strong in DC core for short-term / corporate rentals | Varies with city and season; tourist towns can command high short-term rates |
| Currency risk | USD exposure only | EUR exposure; exchange rate risk for US-based income |
| Legal complexity | Familiar domestic law | Different legal system, notary-centric purchases, additional bureaucracy |
You must understand how costs aggregate. Closing cost norms differ significantly: in Italy, notary and registration fees, plus agent commissions and taxes, can feel steep compared with many U.S. transactions. Mortgages for foreigners often require larger down payments and higher rates.
Legal and tax considerations you cannot ignore
You will encounter multiple legal and tax issues. They are not inscrutable, but they are detailed and consequential. Address these areas before you commit.
- Residency and visa status. Buying property in Italy does not automatically grant you residency or a long-term visa. If you intend to stay long-term, investigate the appropriate visa (e.g., elective residence, work visa, or residency by investment where applicable).
- Tax residency. If you become a tax resident in Italy, you will be taxed on worldwide income under Italian rules. If you remain a U.S. tax resident, you must report worldwide income to the IRS, potentially claiming foreign tax credits for taxes paid to Italy.
- Double taxation treaty. Italy and the U.S. have tax agreements. You should consult an international tax advisor to understand how rental income, capital gains, and property taxes interact between both systems.
- Inheritance and succession laws. Italian succession rules can differ from U.S. wills and probate, affecting inheritance. You should plan with local counsel.
- Property ownership restrictions. Some areas have restrictions on foreign ownership, particularly in border regions or certain historic properties. Check municipal rules.
- Notary and deed. In Italy, a notary (notaio) performs the deed of sale and ensures legal transfer. The notary is impartial but crucial; you should still have independent legal counsel.
You need expert advice: an Italian lawyer (avvocato) familiar with property law, an accountant who knows cross-border taxation, and a U.S. adviser comfortable with foreign asset reporting requirements (FBAR, Form 8938).
Practical checklist: legal and tax steps
You should go step-by-step. This checklist helps you prepare and avoid costly missteps.
- Obtain a codice fiscale (Italian tax code) — required for purchase.
- Open a local bank account, if advised.
- Verify title and encumbrances with local notary or lawyer.
- Secure a pre-sale contract (compromesso) and a deposit plan.
- Understand purchase taxes and VAT applicability.
- Confirm if the property used to be a primary residence (possible tax concessions).
- File appropriate U.S. disclosures (FBAR, Form 8938) when thresholds are met.
- Consult both U.S. and Italian tax professionals.
Mortgages and financing when you’re buying in Italy
Financing a foreign purchase is one of the first practical hurdles you encounter.
- Italian banks do lend to non-residents, but lending policies are conservative. Expect higher interest rates, a lower loan-to-value (LTV) ratio, and detailed proof of income.
- U.S. banks typically won’t finance foreign property directly. If they do, it’s uncommon. You may use savings, secure a mortgage in Italy, or arrange a home equity loan or line of credit against U.S. property.
- Currency dynamics matter: if your income is in USD and your mortgage is in EUR, exchange rate fluctuations will affect monthly repayments.
Below is a table outlining financing differences and considerations.
| Financing Factor | What you should expect | What you should do |
|---|---|---|
| LTV ratio | Lower than U.S. norms (often 50–70%) | Save larger down payment or finance partially from U.S. assets |
| Interest rate | Potentially higher | Compare multiple Italian lenders; seek fixed-rate options |
| Documentation | Extensive proof of income and tax returns | Prepare translated, certified documents; get early pre-approval |
| Currency risk | If loan in EUR, USD income increases exposure | Consider currency hedging strategies or borrow in USD if possible |
| Alternative financing | Use U.S. HELOC, cash, or private loans | Test scenarios with advisors and maintain emergency liquidity |
You should be conservative with leverage. A foreign mortgage can feel manageable until exchange rate shocks or local economic downturns complicate repayment.
The process of buying property in Italy: step-by-step
The Italian property buying process includes steps and actors that may be unfamiliar. Here’s a practical roadmap.
- Pre-purchase research and visits. You see the property multiple times and check neighborhood infrastructure, services, and renovation needs.
- Codice fiscale. Apply for this tax code at the Italian consulate or local tax office.
- Preliminary agreement (compromesso). This outlines the terms and includes a deposit (caparra), typically 10–30% of the purchase price.
- Due diligence. Your lawyer and notary verify title, liens, building permits, and community obligations.
- Final deed (atto di vendita). The notary finalizes the sale; you pay the balance and taxes.
- Registration. The deed is registered, and you receive the keys.
Typical timelines vary: a straightforward purchase in a non-contentious market can take 2–3 months; more complex deals or those requiring renovation permits might extend to six months or more.
Typical costs and taxes in Italy (general guidance)
Costs will vary, but you should budget beyond the purchase price:
- Agency fees: often 2–3% plus VAT (if applicable), charged to either buyer or seller depending on agreement.
- Notary fees: typically a few percent of the purchase price.
- Registration and cadastral taxes: vary based on whether the property is new and whether you are a resident.
- Legal fees: for lawyer services and due diligence.
- Renovation and maintenance: older properties often require significant investment.
You must add an allowance for unexpected contingencies — older buildings frequently contain hidden costs.
Pros and cons table: Italian apartment versus Washington, D.C. first home
You will want an at-a-glance comparison to weigh the trade-offs.
| Factor | Buying in Italy | Buying in Washington, D.C. |
|---|---|---|
| Lifestyle | Historic neighborhoods, slower pace, culture | Urban amenities, proximity to work and services |
| Financial predictability | Foreign currency exposure, variable taxes | Typically predictable mortgage and tax structure |
| Complexity | Higher bureaucratic complexity and language barrier | More familiar legal and financial procedures |
| Liquidity | May be less liquid depending on local market | Often more liquid in high-demand U.S. markets |
| Rental income potential | Seasonal or tourism-driven in some places | Steady demand for rentals, especially near federal areas |
| Emotional value | Strong lifestyle and cultural reward | Strong civic or community feeling; stability |
Your choice should balance quantifiable financial metrics with qualitative values such as sense of place, family ties, and life goals.
Practical tips if you are considering buying abroad
If the story resonates and you are seriously considering such a purchase, use these practical tips as a foundation.
- Visit multiple times, in different seasons. Neighborhood feel can shift dramatically between seasons.
- Rent first. Live in the area before you buy to test day-to-day life.
- Hire a bilingual attorney and an independent local surveyor.
- Budget at least 10–15% over the purchase price for immediate repairs and renovations, especially in older properties.
- Confirm internet and utility reliability if remote work matters to you.
- Learn basic language skills — even modest effort improves transactions and daily living.
- Maintain a robust emergency fund; foreign properties sometimes require immediate, unexpected expenditures.
- Consider insurance that covers both property damage and liability, and confirm its coverage in Italy.
- Think about exit strategy: how easy will it be to sell if circumstances change?
You must enter with eyes open: buying abroad is wonderful and logistically demanding. Your emotional readiness matters as much as the numbers.
Emotional and interpersonal implications: what “It’s a pinch me moment” reveals
That simple quote reveals how uncommon achievements can feel both surreal and fragile. You will recognize this feeling if you’ve saved patiently and then decided to take a risk that dismantles a prior plan. There is gratitude, yes, but there is also a suspicion that the good thing might be an illusion.
You should expect paradoxes:
- Joy and disorientation. Happiness can coexist with anxiety about maintenance, taxes, and the unknown.
- Pride and vulnerability. You may feel proud of purchasing abroad and simultaneously exposed to critique from family or friends who preferred a traditional route.
- Freedom and obligation. Owning a property you love feels liberating, but it brings obligations — financial, administrative, communal.
Plan for emotional contingencies: keep routines that anchor you, maintain social ties in both countries, and be honest about how much time and energy the property will demand.
Questions you should ask before making an offer
You must ask direct questions to avoid surprises. Here are crucial ones:
- Why is the seller selling?
- What maintenance or renovations are required now and anticipated in the next five years?
- Are there any judicial or municipal claims on the property?
- What are the real historical costs of utilities and condominium fees?
- Can the property be rented short-term or long-term under local regulations?
- What are the zoning restrictions and potential development plans nearby?
- How accessible is healthcare, transportation, and local markets?
Answers to these questions will reveal hidden costs and future value.
How this decision affects your broader financial plan
Buying abroad is not an isolated decision. You must consider retirement planning, emergency liquidity, and diversification.
- Liquidity and home equity. If you use most of your savings for a foreign purchase, you might reduce your ability to respond to emergencies or invest in retirement.
- Exchange-rate effects. You will need to plan for currency conversion when you repatriate rental income or pay contractors.
- Diversification. Property abroad can diversify your asset base but also concentrates risk if you are overexposed to real estate.
- Estate planning. You must align wills and succession plans across jurisdictions.
Consult your financial planner and tax advisor before you finalize a purchase to ensure alignment with long-term goals.
Common mistakes and how to avoid them
You will avoid regret if you are mindful of frequent pitfalls:
- Underestimating bureaucracy. Documentation, registrations, and local rules require time and often patience.
- Skimping on local legal counsel. The notary is impartial; you need your own advocate.
- Neglecting currency risk. Prepare for exchange swings by projecting stress-test scenarios.
- Ignoring ongoing costs. Utilities, municipal fees, and building maintenance add up.
- Buying emotionally without visiting in different seasons. Physical visits mitigate impulse purchases.
You can avoid these mistakes by approaching the purchase as a project plan with timelines, professionals, and contingency funds.
If you decide to buy: an operational checklist you can use
Below is a practical operational checklist to manage the process from interest to ownership.
- Decide budget and funding sources.
- Obtain a codice fiscale.
- Hire a bilingual real estate agent and an independent lawyer.
- Visit the property multiple times and conduct thorough inspections.
- Secure pre-contract written terms and deposit schedule.
- Confirm mortgage terms if applicable.
- Conduct notary and cadastral checks.
- Complete the atto di vendita with a notary and register the deed.
- Pay taxes and register the property for local assessments.
- Set up utilities, insurance, and property management if you won’t be present.
This checklist is a working tool — adapt it to specific local requirements and unique property features.
Final reflections: what the story tells you about choice and possibility
The CNN/CNBC-style story about a couple switching a D.C. first-home plan for an Italian apartment is an anecdote about modern mobility: the capacity to reframe what home means in a world where remote work, global markets, and shifting priorities intersect. It is also a reminder that saving is not simply a mechanical act; it is a conversation about what you prioritize when the opportunity arises.
You must consider that the couple’s decision required privilege and planning, as there are practical and financial buffers that make such cross-border purchases feasible. If you have the resources and the appetite for complexity, the same opportunity might open for you. If you do not, the emotional lesson remains: flexibility and honesty about what you want can produce outcomes that are both surprising and deeply satisfying.
When you see the phrase “It’s a pinch me moment,” think about gratitude and the fragility of good things. Experience does not guarantee protection from future difficulty; prudent planning does. If you choose to follow a similar path, carry both your wonder and your spreadsheets. They serve you equally.
Resources and next steps
You will want concrete avenues to continue your research and preparation:
- Consult an international tax advisor with experience in U.S.-Italy taxation.
- Contact the Italian consulate for residency, visa, and codice fiscale processes.
- Meet with a bilingual real estate lawyer in the region where you plan to buy.
- Join expat forums and local community groups to learn about daily living and logistics.
- Prepare a three-year financial projection including worst-case currency scenarios and maintenance contingencies.
If you are active in your planning and realistic about trade-offs, the leap can be both strategic and meaningful. The story of the couple who shifted their dream from Washington, D.C. to Italy is not simply a viral human-interest piece; it is a prompt for you to ask what you would do if your disciplined savings could unlock a life you hadn’t expected.