Built entirely on islands, looking just like a Canaletto painting, La Serennisima remains as dream-like and mysterious as when the Doges ruled the Adriatic waves. And although it was baking hot during my recent June visit, the place seems to have cleaned up its act. We couldn’t smell drains, sewers, or any other noxious niffs rising from the canals.

Despite the city’s expensive reputation, properties are selling for much less than I expected. Naturally, it costs zillions to buy an entire palace—especially if it overlooks the Grand Canal—but in Venice’s less touristy areas you’ll find attractive apartments, in restored buildings, starting at around $93,000. And Venice is an all-year-round destination—many people actually prefer the misty days of winter, so it’s easy to let an apartment year-round.

As long as it doesn’t disappear into the sea, this city will never go out of fashion.

Before getting on to property buys, I want to show you the less-touristy side of Venice. Although the dollar’s strength means it’s far less pricey than a couple of years ago, if you’re not wary, Venice can still make gaping holes in your budget, especially if you copy the majority of tourists who throng the hotels and pavement cafés around the Piazza San Marco. You won’t hear many Italian voices in Florian’s, where a 7,000 lire charge is added to every person’s bill, simply for the privilege of hearing the in-house orchestra.

Sitting on the marble steps of St. Mark’s Square’s shady arcade, swigging a bottle of water, I was told to move by one of Florian’s waiters. I got my revenge by nicking one of the menus—they’re not on the tables, so you don’t know what the bill will be if you order without asking for the price-list first.

They charge 11,500 lire ($5.30) for a cappuccino and 7,000 lire ($3.20) for seven fluid ounces of bottled water. English Afternoon Tea of scones, jam, whipped cream, a finger sandwich, and tea will set you back 35,000 lire ($16). What a rip-off! But you don’t have to be fleeced.

Europe’s first Ghetto

We also wandered through the northerly Cannaregio district, my favorite Venetian neighborhood. Here children play in sun-dappled squares, old ladies gossip in armchairs in the street, and stores sell things like sewing machines and cotton bobbins rather than exorbitantly priced carnival masks and Murano glass. In backstreet bars and eateries called osterias, you can have a cappuccino for 2,500 lire ($1.15), a glass of wine for 2,000 lire (90 cents), and delicious pizzas the size of a garbage-can lid for less than $5. (You can always tell a place offers good value if you see workmen using it.)

Europe’s first designated Jewish quarter, the Ghetto, is the heart of Cannaregio. The word ghetto derives from the Italian word for foundry. Most of the district’s original inhabitants worked in the metal-smelting industry. Few tourists stumble into this quarter of lightless alleyways and ribbon-thin canals, where laundry flaps from green-shuttered, 16th-century buildings towering 6- and 7-stories high. About 500 Jews still live in this tiny core of Cannaregio, and you’ll find five synagogues, Jewish shops, a museum, and even a kosher restaurant called Gam-Gam.

To reach Cannaregio, take the No. 1 or 82 waterbus and get off at either Ferrovia or San Marcuola. Single tickets cost 6,000 lire ($2.75), but locals in possession of a resident’s card pay only 1,500 lire (70 cents). Although Venice is a small, walkable city, riding the vaporetti gives the best views of the Grand Canal’s palaces. It’s cheapest to buy a day ticket for 18,000 lire ($8.28) or a three-day ticket for 36,000 lire ($16.56).

Tickets are valid for the Lido and farther-out Lagoon stops, such as the glass-blowing island of Murano, so don’t be fooled by the San Marco touts flogging over-priced boat trips.

Why ground-floor apartments are cheapest

The majority of Venetians live in apartments, with palazzos and “houses of architectural value” often being divided into several households. The most sought-after addresses are those with a dreamy view of the Grand Canal.

Ground-floor property may be offered at a low price because it’s prone to flooding—Venice is subject to high tides twice a year. You’ll also pay more for an apartment in a refurbished building where an elevator has been installed. Property agents charge commissions of 3%. On signing a contract, the law requires a notary to be present. Legal fees average 10% to 11% of the contract price.

On offer now

We passed scores of small realty offices. Few have websites or speak English. If your Italian is limited, Immobiliare Cera and Venice Real Estate speak English and are used to dealing with international buyers.

Italian speakers can check out www.casavenezia.it, listing 16 agencies. The following properties were on the market last month: