Real estate investors' budgets may have been hit by the harsh reality of modern-day economic life, however the pull of purchasing property in a country such as Italy remains undimmed.

As a result rising numbers of foreign purchasers in Italy's property sector are opting to fix up properties or even build anew instead of buying resale property.

The principal reason is glaring cost. Leave behind any hopes of helping yourself to renovation homes for Euro 1, a publicity gimmick launched a couple of years ago in Salemi, Sicily. Nonetheless in regions such as Sicily, Calabria and Molise a rustic ruin can be found from just Euro 11,000.

Throw in costs of restoration that can begin at roundabout Euro 800 per sq m and one can convert a an old wreck into a 90sq m dream holiday retreat for around Euro 90,000 far less than what one would set you back otherwise. In addition, beyond the initial purchase price, renovation costs may be split over the lifetime of the building work, which can be as long as the buyers prefer.

Stefania Russo, founder of Italian real estate search specialists The Property Organiser, explains: "The credit crunch has led to more investors going down the restoration path. The costs in places such as Abruzzo are about Euro 950 per sq metre about 50% what you would face in northern Italy. And rather than having to come up with funds up front, this route lets them spread expenses over months or years, if they want to turn it into a long-term project.

"In addition, buyers like the option to leave their personalised imprint on their homes, which is easier to do through renovation than if they buy a resale and then try to change it."

Italy's long history means it has a countless number of buildings up to 500 years old, needing only some TLC to convert them into welcoming modern homes. Italy also has a plentiful supply of farmhouses favoured by countless overseas investors largely because of the mass migration of swathes of country folk who, in the 19th and early 20th centuries, left villages for towns and cities or even a new life in the US and Latin America. By the way, if you are tempted to try something a little different, the answer may lie in the approxmiately 6,000 churches and chapels up for sale to be upgraded into homes.

Having settled on a property, the next requirement is engaging the right professionals to bring your dreams into reality. Although some are prepared to do most of this themselves, the most advisable route is to get a reputable geometra/surveyor (your property agent should be able to point you in the direction of with one). They will be able to find goodl builders for you as well as get in touch with local authorities for the needed work permission. Bear in mind that many old rustic homes are built in stone and so renovating such homes will need craftsmen used to dealing with stone.

One frequently present problem with building projects like this is that your outlay can rise out of control, often by up to 20%. Common pitfalls include swimming pools (the cost of which can be 20,000); upgrading access roads (budget up to Euro 2,000 for a 50-metre section); and improving gardens. However, your surveyor can insist on a contract with your work team specifying a cost ceiling in addition to a deadline, with penalties applicable if they are breached.

Although surveyors design homes to a certain level, their expertise is limited and you would be advised to also seek out an architect to take charge of design. It goes without saying before a brick is laid that you make abundantly clear what you envisage and that you convey this to the architect. Deciding on something different once work is under way takes up valuable time, is expensive and a pain in the rear for everyone else concerned.

Be realistic about the likely timescales involved. The purchasing procedure can last between four and 12 weeks and sorting out building permission a further six months depending on the local authority involved.

Finally, unless you intend being on-site for extensive periods, your team should also include a project manager, independent of the builders to act as your eyes and ears in your absence and help keep the project on track. The architect or geometra can also do this for you. One project manager explains: "By dropping in as often as is necessary, more often than not with no advance notice, we keep the client abreast of progress using fulsome dossiers and digital photos. It means any problems can be resolved straight away. We maintain everything going to plan and, even more crucially, ensure the buyer isn't caught unawares by ugly surprises.