Buying Properties Abroad - A Great Investment

Yesterday we looked at different reasons for buying properties abroad. One of these was buying as an investment. This could be a way of investing money you have inherited or received as a bonus.

If buying properties abroad is seen as an investment, rather than as a holiday home, obviously the first consideration will be the extent to which a property is not only going to hold its value, but appreciate in value. So if this is your intention, the first thing you need to do is investigate the market.

Now this is where things get a bit complicated. You don't have a crystal ball - so you can't predict precisely whether a property is going to hold and increase its value. Just the fact that a property is cheap doesn't necessarily mean it's going to go up. Quite a lot of people have bought property overseas because the salesman assured them the market would take off - only to find that this never happened.

Some people say you should buy in countries with a proven track record, such as Spain and France. Others say that these are saturated and you should look further afield. In actual fact there are still some remarkably low-priced properties to be found in France so you could possibly find a good investment here. If buying in Spain you need to be VERY careful - many people have got their fingers burnt through not checking the legalities thoroughly enough.

Some of the things you should check include:

• Is inward investment in the country on the increase? For instance, countries which have just joined the EU, such as Bulgaria, could be a good prospect.


• Is the government making major efforts to improve the infrastructure? There are good reasons for believing that Egypt and Turkey, where properties are quite low-priced at the moment, will prove a profitable market. In Egypt because the government want more people to come to the country, and in Turkey because they are desperate to join the EU.


• What are the prospects for political stability in the country? Most EU countries are relatively stable. If there is the prospect of political upheaval in a country, obviously a property bought there might not be a good investment.


• Are there problems with the climate? Many people buy properties based on the fact that they enjoyed a holiday in that country - but that would have been in the peak holiday season. In places like the Caribbean where there is a risk of hurricanes and tornados at certain times of the year, a property might not be a good investment.


• Take expert advice on the economic outlook of a country where you are considering buying investment property. Economic conditions have a powerful effect on the property market and therefore on the chances of your property proving a good investment.

These are certainly not all the factors to consider, but they are some of the main ones. Buying properties abroad, and all types of investment, always carry some degree of risk but you can make sure you keep the risks to a minimum. I would love to hear your views or experiences - have you made a good or bad investment in property abroad? Have you got any tips or warnings for people considering taking this step? If you want to find a fantastic selection of properties go to http://www.bizwrite.co.uk/realestate/propertyabroad.html