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Do's & Don'ts of Overseas Property Investment

Buying a property overseas is big business and today the investor is spoilt for choice, with the expansion of the EU and the attraction of long haul destinations, such as Florida and Dubai. Where you choose to invest could be governed by any number of things, such as culture, lifestyle, whether the property is purely for investment or for personal use. One thing is common to all overseas purchases, however, you need to have sound advice in order to purchase your property legally and safely. Another consideration is to minimise your exposure to unfavourable exchange rate fluctuations, as much as you can.

Do check that you will be able to get a mortgage. Most mortgages, particularly in Europe, assess your ability to borrow from your net income. A maximum 35% of income should cover existing outgoings, including your UK mortgage and your proposed euro loan.
Don't rely on rental income to cover all the property outgoings. Always consult local specialists and UK holiday companies for a realistic rental valuation.
Do be aware of any tax implications relating to the property.
Don't sign anything until you have consulted your lawyer.
Do remember that inheritance tax laws can differ from those in the UK and make sure you aware of what these differences are.
Don't hand over any money until instructed by your legal advisor.
Do ask to see an up-to-date entry of the property at the local land registry.
Don't leave your brains at the airport; be as vigilant about buying a property overseas as you would be in the UK, and if anything... more so.
Do ask if you will be allowed to make any structural alterations to the property, if you so wish.
Don't expect the property to be automatically connected to utilities. If the property isn't connected, find out how much the connection charge will be.
Do check that the contract guarantees vacant possession on the completion date.

Don't accept the contract price if it isn't a fixed one.