A lot of us have thought at some point about buying property overseas. The possibility of high returns for a relatively small real investment is a major attraction to anyone.The main reason the majority of people don’t invest more seems to be that the whole process seems too high-risk and they feel the legal and the paper-work end of things requires some special qualification. People often say to me they are concerned that they won’t be able to ‘keep an eye on their investment’. My usual answer to this is ‘when is the last time you’ve seen your shares?’ The main mistake people make is seeing an investment property as a home instead of an investment.

It is important to study the currency exchange rate stability before deciding what type of finance to take as it can have a big effect on repayments. With the equity loan the only up front payment I had to make was a €10,000 deposit. I often find that paying over a large lump sum at the start is a good idea even if not required as it not only reduces repayments but it helps you to assess if you can afford the property by how difficult it was to get that sort of money together and also gives you a sense of assurance in the case that something should go wrong. The particular development I choose has one important feature in that there is a guaranteed rental agreement on it for five years.

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