Eric plans to pull off his own Italian job

Apr 27 2008 Frances Traynor

Travel Agent Hopes To Make A Big Profit From Holiday Home In The Unspoilt South Of Italy Place In The Sun

As a travel agent, Eric Smith knows how to spot up-and-coming resorts.

So it's no surprise he has bagged himself a bargain in southern Italy.

Caulonia, a traditional seaside town in Calabria, has long been a favourite with Italian holidaymakers and Eric believes it will soon be a hit with British tourists too.

He has bought a new one-bedroom apartment in Caulonia Marina, with a communal swimming pool and landscaped gardens.

The development is being built and Eric will be handed the keys of his holiday home next year.

Eric, 53, is the boss of Eric Smith World Travel in Oban, where he lives with his wife Carma, 52, and daughters Caitlin, 15, and 12-year-old Rosie.

While the family love taking breaks in Italy, their investment of 75,000 euros (around £60,000) is more of a financial one.

Eric said: "I see this as a long-term investment. I hope to rent the apartment out, although we will also use it.

"In Italy once you've owned a property for five years, you can sell it without paying tax, which is a big incentive.

"I saw potential with this resort.

The cost of living in southern Italy is so much cheaper than in the north and other Mediterranean resorts. A cappuccino costs one euro and you can enjoy a great meal out for around five or six euros per person.

"This area isn't really known to British travellers but Ryanair have just started flights from Stansted to Lamezia airport, which is about an hour's drive away.

"Once one of the low-cost airlines moves in, others tend to follow. I think more direct flights from Scotland will come.

"There is also the option of flying direct to Rome or Naples from Glasgow, then taking a train direct to Caulonia."

Eric has been in the travel business for more than 30 years and is no stranger to buying abroad.

He had a holiday home in Tenerife which he sold a few years ago and considered buying in Cyprus before falling for the Caulonia development being marketed by Let's Live Abroad.

In January he spent five days in Caulonia where representatives from Let's Live Abroad showed him round the resort.

He was impressed with the plans for the luxury apartment, with its own terrace and sea views.

But a beautiful beach and great weather isn't Caulonia's only selling point. The region has been a popular spot for centuries and, apart from Roman remains, there is also a site of an ancient Greek temple nearby.

Every July the town even boasts its own film festival, the Festival Del Giovane Cinema Italiano.

Eric said: "The weather is beautiful all year round and the apartment is within a kilometre of the sea.

"But I was impressed that there are lots of other things to do beyond a beach holiday.

"There is interesting architecture and archaeological sites, plus a lot of very fine restaurants that won't break the bank."

Eric and Carma paid a £3000 deposit in January then put down 50 per cent of the apartment price eight weeks later. The balance is due when the apartment is completed and the couple will then consider taking out an Italian mortgage.

With his experience in business and travel, Eric had no qualms about buying the apartment even though the worldwide credit crunch has begun to bite and getting a mortgage has become a little harder.

He said: "I see the current credit crunch as a short-term problem, perhaps a year or two.

"As I have already owned abroad, I have no fears about dealing with banks in a foreign country.

"Let's Live Abroad have been very professional in their dealings with us and they will put us in touch with the right people if we decide to take out a mortgage.

"This is a beautiful apartment in a beautiful part of the world - I'm in it for the long-term."

FACTFILE

Calabria is proving popular with investors because it is a relatively unspoilt area of Italy. The infrastructure is still being established, with new roads, restaurants, beach bars and golf courses springing up all the time.

Anyone who buys property in Italy enjoys the same rights as Italian nationals.

The compromesso, or contract, is legally binding and a deposit will be payable at the time of signing. Make sure you have any issues with the property ironed out before you sign as it effectively commits you to go ahead with the sale - no matter what.

For more information, log on to www.letsliveabroad.com or call 0845 22 55 777.