There’s something intriguing about Hungary. Take away Budapest, goulash and gypsy violins, and it’s practically unknown to the English-speaking world.

Did you know Pecs is one of 2010’s European Cities of Culture? Or that Lake Balaton has thatched-roof villages and vineyards? When I told friends I’d been to towns like Dombovar and Kormend, it produced the same puzzled reaction as if I’d said I’d explored the far side of Pluto.

So it isn’t surprising that ripe-for-restoration cottages list for $10,000. Or that traditional homes of the move-into variety often sell for under $50,000. Nobody knows rural Hungary exists!

Of course, I’m exaggerating. Although there’s still only a trickle of westerners, Hungary’s low cost of living and affordable properties are starting to get attention. Pensions stretch a long way here. Annual property taxes rarely exceed $60, and you’ll find two-course lunch specials for just $2.70.

In May, I journeyed into the provinces—the heartland of the now-vanished Austro-Hungarian Empire. From Lake Balaton to the baroque towns near the Austrian border, countless places are sprinkled with enchantment.

Nostalgia seems embedded in the collective psyche. This is the forgotten Europe of piglet markets and horse-drawn carts, of stray chickens and arcaded farmhouses where paprika peppers are hung to dry during the hot summers.

Wild boars roam the forests and handsome csardas (inns) serve roast duck and dumplings for $6. And it’s no rumor. There’s often a “man down the lane” who turns villagers’ excess apricots and cherries into palinka (schnapps).

Hungary’s Far West

One newcomer is Bruce Sylvester, an American medical journalist living in a village outside Kormend, in western Hungary. Bruce enjoys life’s good things and dines in Kormend’s best hotel every day. He puts his daily living costs at between $20 and $30.

That’s less than $11,000 a year to live in what he calls “wonderland.” And, incidentally, wonderland comes with a nearby private medical clinic and all the connectivity needed for a work-from-home Internet business.

Bruce’s story illustrates the likely restoration costs of a traditional cottage. He paid $8,000 for his, plus $2,000 for the land. Including the purchase price, the total cost was $45,000.

On the edge of a national park, the Kormend area is great for seeking rural bargains. Farmhouses and cute cottages with thick walls and stout oak beams, for instance. I saw a 200-year-old cottage here for $14,500. It needs modernizing, but labor costs are low. Knowing the expense of thatching roofs in Ireland, I was astounded to learn the price here: $9,000 for a typical cottage.

Oh, and if you need it, Austria and its ultra-private banking system are but 20 minutes away.

Lake Balaton

A refurbished farmhouse in Lake Balaton’s vineyard country is yours for $159,000. That’s not as inexpensive as Kormend, but Balaton has star quality for Hungarians.

At 48 miles long, Balaton is Central Europe’s largest lake. With golf, sailing and imported sand beaches, it’s known both as “the Hungarian Sea” and “Budapest’s Summer Capital.” And Hungarians aren’t the only ones who flock here in huge numbers during summer.  During Communist times, many West-German families vacationed in Balaton where they met East-German relatives separated by the Wall. There are now many German retirees here.

Balaton is most attractive on its hilly northern and western shores. Surrounded by vineyards, numerous storybook villages hug the north shore. To the west, my favorite towns are Keszthely and spa town Heviz. I stayed in Heviz, built around a thermal lake. Even in winter, its waters are warm enough for bathing. Unless teenage discos are your thing, avoid the flat southern shore around Siofok. It’s overbuilt and rather down-market.

To the Manor Born

I wanted to view some castles firsthand, but most medieval ones were destroyed during wars with the Turks. And baroque palaces now usually operate as hotels and wellness centers.

Small manors and villas often appear under the German word Herrenhaus, meaning ‘master’s house.’ Most were built between the early 19th to early 20th centuries.

Outside the town of Dombovar in southern Hungary, Marta Dudas showed me an immaculate Herrenhaus dating from 1907. Its German owners renovated it two years ago and installed under-floor heating. Painted yellow and white, many of its fixtures and fittings are German-made. There’s a guest cottage in the equally immaculate grounds that include cherry, apricot and nut trees. Living space for the two properties amounts to 2,795 square feet. Price: $274,000.

With mosaic domes and wedding-cake houses, the city of Pecs is 40 minutes away. I only explored for a few hours, but it has a lovely, laid-back feel. Once ruled by the Turks, Pecs has a rich heritage, with mosques and minarets still on display, although now they’re museum pieces.

Hungary—Are you Serious?

Misconceptions exist about many places east of Vienna, Hungary included. For starters, Hungary doesn’t lie under permafrost. I can’t argue about snowy winters (pile those logs into the wood-fired stove), but it has four seasons. It’s blessed with springtime lilac blossoms, fall wine festivals, and golden summers with temperatures hitting the 90s F.

Communism’s blight? Much of the countryside is a mosaic of forests, lakes and farmland, not industrial decay. Baroque towns have houses painted egg-yolk yellow and salmon pink. It’s like the non-Alpine half of Austria—the two countries share a border.

Hungarians never considered themselves part of the Eastern Bloc. From architecture to food, there was a big difference between the countries of the former Soviet Union and those of Central Europe.

Worried about language? Bruce Sylvester doesn’t speak Hungarian. But he finds he doesn’t need to. As English is now taught in school, almost every local under the age of 35 speaks some. For university entrants, the ability to communicate fluently in English or German is a compulsory requirement.

Well-stocked supermarkets are everywhere, including branches of major European chains like Tesco, Lidl, and Interspar.

Fast motorways link to Budapest and also plug into the European network. For Bruce in Kormend, Graz (and its airport) in Austria is an hour away. And he can be in Vienna in two hours. From Lake Balaton, Venice in Italy is a six-hour drive, and you can reach the Adriatic coast in four hours.

Hungary has a lot going for it. Even on a small budget, a European lifestyle doesn’t have to remain a romantic dream.

Live in a Hungarian Castle

Austrian agency Casa-Mia has a number of Hungarian castles on their books. The site is in English as well as German. 

• In the northwestern village of Ostffyasszonyfa, Karolyi Castle was built around 1900. With living space of 8,492 square feet, it’s partly renovated with a new attic and roof. There’s planning permission to convert it into apartments. Price: $285,600.

• At Bucsu, near the Austrian border, is a partly refurbished castle dating from 1790 on around four acres of land. Living space amounts to 4,300 square feet, but the vaulted cellar and attics need major work. Price: $424,500.

• Around three miles southeast of Szeged in Csongrad county, this turreted three-story property of 11,000 square feet is partly renovated inside. The 15 acres of land include a course angling pond. Price: $952,000.

• In the northeastern, permission has been granted to convert Sarvar’s Hatvanyi castle into a conference and wellness hotel. Plans are for 41 bedrooms, three conference rooms, a restaurant, a wellness area, a basement bar and an external swimming pool. Dating from 1890, the castle is partly renovated. It’s a massive property with four floors, each approximately 7,525 square feet. Price $2.14 million.

Steenie’s Contacts in Hungary

A long-time resident in Hungary, Englishman Christopher Keeling is my local contact in western Hungary. Part estate agent, part building planner and contractor, and part consultant, he introduced me to Bruce—and also to Alex, an American doctor. Alex is renovating a massive old townhouse in Kormend for his retirement. Christopher’s website gives extensive details about moving to this corner of Hungary—and also how easy it is.

Based in Keszthely, my Balaton contact is Tamas Marothy of Canella. Their English-language site can be found here . For properties around the town of Dombovar in southern Hungary you can contact Marta Dudas of Europlusimmo.