Fancy a home for a dollar? There's a catch

Left: Cumnock in Australia is trying to rejuvenate itself by dangling offers to entice people to come and live in the many houses vacated by residents who have moved away. Above: Gangi, a small town in Italy, offered 20 properties for less than US$2
Cumnock in Australia is trying to rejuvenate itself by dangling offers to entice people to come and live in the many houses vacated by residents who have moved away. PHOTOS: SCREENGRAB/REALESTATE.COM.AU, ISTOCKPHOTO

CUMNOCK (Australia) • Like many small towns around the world, Cumnock in south-east Australia has gone through a long period of population decline and fading fortunes.

It was once a key railway stopover in the state of New South Wales, but the closure of the train station and opening of a new highway turned the bustling small town into a picturesque but quiet place, largely off the grid.

As its population dwindled to its current count of fewer than 300 people, residents had for years feared that the town's primary school might eventually have to close, which would have been a devastating blow for Cumnock.

So they began to wonder how this community - in a region regularly affected by drought and about a four-hour drive from the state capital Sydney - could expand again.

Cumnock did not have expansive shopping malls, attractive restaurants or world-famous museums. But it did have lots of empty houses from all the people who had left.

So in 2008, an idea was born: Give those houses to anyone willing to move here, not only for a fair price, but essentially for free.

 Gangi, a small town in Italy, offered 20 properties for less than US$2
Gangi, a small town in Italy, offered 20 properties for less than US$2 each in an attempt to revive itself. PHOTOS: SCREENGRAB/REALESTATE.COM.AU, ISTOCKPHOTO

For houses in need of renovations, the town would charge a symbolic weekly fee of less than US$1 (S$1.35). Renovated cottages would cost slightly more but would still be extremely cheap.

When Ms Nicole Lewis read about the scheme four years ago, she took note. Shortly afterwards, she left her city life and moved to Cumnock with her husband and five kids. "Everyone was so welcoming - it was an instant fit," she recalled of her first few weeks.

The couple still pay about US$100 a week in rent for their three-bedroom house, with fireplaces, a back veranda and no immediate neighbours. "It's the typical Australian country home feel," she said.

More than a decade after Cumnock launched its experiment, the concept has been picked up by over a dozen other towns across Australia and around the world.

Italy's hilltop town of Sambuca made headlines last week when it announced it was selling homes for less than US$2, in an effort to halt its population decline as more young residents move to bigger cities where they are pursuing degrees and have better chances of finding employment.

The campaign may sound similar to close observers of the Italian real estate market: In 2014, the small Sicilian town of Gangi launched just such a scheme, offering 20 properties for less than US$2 each.

In both Italian towns, like in Australia's Cumnock, applicants had to commit to renovating the homes.

For young urban families, Cumnock's initiative may be more attractive now than a few years ago.

Researchers in Europe and Australia have observed that while more people are moving from rural areas to cities, there is also a growing number of people who now find cities so unaffordable that they are forced to move back into suburbs or smaller towns. That could be great news for the Cumnocks, Gangis and Sambucas of the world. The more unaffordable bigger cities become, the more attractive life in smaller towns might appear.

The flight of Ms Lewis' family and others who have since joined her in Cumnock certainly will not stop the world's growing urbanisation, with the proportion of the global population living in cities expected to increase from the current 54 per cent to 66 per cent in 2050.

In fact, these families' arrival in Cumnock could not even prevent the recent closure of the local pub and hotel. But it might be able to offer these shrinking towns, which are tapping into the right mood at the right time, a much-needed lifeline and boost in confidence.

"Overall, I'd say it's been successful. It highlights that rural areas' lifestyle is actually better than in Sydney, and more affordable," Mr Phil King said as he drank a beer in the local bowling alley that now also serves as the town pub.

His friend Scott Reynolds agreed that the programme has been a boost for Cumnock: "It's put the place on the map a bit."

WASHINGTON POST

A version of this article appeared in the print edition of The Sunday Times on January 20, 2019, with the headline 'Fancy a home for a dollar? There's a catch'. Print Edition | Subscribe