Things to consider when buying property abroad

For some people simply heading away to a hotel on a foreign holiday is not enough. Many are choosing to buy property abroad, but are not thoroughly considering the potential pitfalls of purchasing a foreign retreat.

Some choose to buy when they retire, others may make theirs an investment earlier in adulthood. Either way, anyone considering such a purchase must think about cost and location.

While it may seem like a good idea to move out into the remote areas of another country, you may only get the benefits if you vist 2-3 times a year. Its nice to get away from it all every now again, but if you choose to eventually live abroad then being miles away from local towns and villages will only inconvenience you.

If the pound is performing badly against the euro, for example, it might not be the best time to invest. Although the price of dwellings can fall in line this, it is not always at the same rate.

Another thing that must be carefully considered are properties that need rennovations. In many cases, local councils will have something to say about making additions to derelict buildings, forcing trips to court and extra money needed for admin and paperwork. In some cases people inadvertently buy a a listed building that cannot be built upon, so it's always the best idea to do some research before jumping into anything too quickly.

When choosing a location, it can be important to consider whether the value is likely to drop or rise and amenities and transport nearby. It is advisable to study the trends in property pricing in the area you are looking at moving into, this way you can judge whether things are going to get better or worse.

You also may want to consider how much time you are planning to spend there and how you will manage the building – paying bills, for example, during your absences. Many people worry about the pressures of security while they are away, but there are firms that will perform routine security checks on your property. Another option may be to get to know the locals and ask if they can look after your property while you're gone.

Tax can also be a pertinent issue – you may have to pay these to authorities in two countries – to the destination's government on arrival and Britain's, if you sell, are liable for capital gains tax.

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