What are the risks of buying property overseas? I've seen posts here, and read some articles about people investing in overseas property. Apparently it is more popular in the UK and Ireland, since property prices there are so high, and they are closer to some of the more popular areas. Americans can't just run over to Spain for the weekend, really.

I realize a lot of people buy condos or houses when they retire overseas, but now I'm thinking about investment property. Is it a smart thing to do?

I know I would have to limit myself to places with adequate property rights, and worry about the stability of the government and exchange rate problems if there is a mortgage, but what else should I worry about?

You really have to be careful about choosing what area to buy in, as well as what country. If you are buying for investment purposes, you would want to stick to ex-pat areas.

You have to worry about getting an honest agent and lawyer. You have to worry about property conveyance issues that are different from what you have come to expect at home. And what you really have to worry about is the price of what you buy. Ex-pats tend to overpay, and then when they want to sell, they have to sell to another ex-pat, because they have priced themselves out of the local market. As long as the ex-pats keep coming, you are OK. If they stop, you may find the property difficult to sell without taking a big loss.

One advantage, though, is that if you do buy into an area that is growing in popularity, you can make a lot of money. That said, we chose to wait before buying.

In answer to you question about the dangers of buying abroad, the best protection is to research your seller/agent and transferring lawyer as much as possible BEFORE sending any payments!

Try to 'Google' every name or word relevant to your purchase....you may be surprised at how much info is out there about this! For e.g.

check out totallyproperty.com/bulgaria-property/2538-watch-out-have-you-been-caught-them-yet. Watch Out Have You been Caught by Them Yet ??????????????? - Overseas Real Estate and Property Investment Forum - The TotallyProperty (dotcom) Property Forum very good clues on how to avoid losing out...worth reading all the way through!

Sofia News Agency forum www novinite com/forum_view.php?main_id=109875]Sofia News Agency - Forum is an intersting article on the subject too.

IF YOU SEE A PARTICULAR NAME YOU WANT TO CHECK (ESPECIALLY IN THE TEXT) JUST TYPE IT IN GOOGLE ...YOU MAY BE SURPRISED!

I hope this is of some help in answering your question, PM me if you need any more
Robin Hood

Checking out everything on Google is a good idea anytime you are spending a lot of money. When I move, I plan to Google every possible employer, every shipping company, and every rental agent.

I would try to know someone that can offer first hand advice on what to do and what to expect. I would also check out the market trends in that country i.e see how much properties go up by. It may be an idea to rent before you buy so you can get a feel of things befor rushing headlong into something.

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Renting first is a good idea. I know that if we decide to stay and buy property, we will feel a lot more comfortable about it than we would have otherwise.

But what if I just want to make an investment, and not really live there?

As house prices in the UK are relatively high, some people are buying property elsewhere in Europe to get a first step on the property ladder. I think it is tricky knowing where to buy a property. I would think about the likely resale value and the type of people who are likely to buy. For example, those who retire to a place in the sun may require a property close to the beach.

I wonder if some of the speculation by people who can't afford property in the UK or Ireland is on a scale that seems small compared to a property purchase at home. If you can't buy anything for less than half a million pounds, then risking 60,000 GBP on a condo in Bulgaria probably doesn't seem like such a gamble.