Henry Emson, director of Bridgehouse International, says: When choosing an overseas market it is vital to establish what suits your investment goals and the level of risk you are prepared to take: the less established markets are high risk but offer better potential returns.

In Europe we recommend countries with a strong currency and established or pending EU membership with a flourishing tourist industry.

It is important that favourable mortgage options can be set up from within the country and there must be good local demand for property to ensure that you sell well when the time comes. Local demand also offers security from currency fluctuations and tourism trends.

When choosing a development, location is the key, so always buy property near the sea, ski gondola, golf course, etc. Then you will always recoup the location premium you pay. Buy into a high-quality, well-built development as the properties will offer the best rental returns and resale security. Always look at the price per square foot. A large one-bedroom flat may easily be worth more than a small two-bedroom flat if it is in a larger space.

Check that the developer has a good track record. If possible, visit past projects and talk to existing owners and tenants.

Most of us don’t have the time to do all that when planning to invest overseas so you should use an investment company or adviser. Pick a company that can assist in resales, rentals and advice on the local market. It should also be experienced in dealing with developers and ideally would have large client numbers to negotiate the best investment terms.

Investment returns are never certain, but if you take the right advice and invest wisely then they can be substantial. Much of your return will depend on the mortgages available within a country; they can improve returns greatly.

Finally, don’t be short-sighted: property investment should always be for a minimum of two to five years. It takes time for property markets to appreciate, and anyone who tells you otherwise is giving a hard sell. Reselling can be unpredictable, so have a long-term plan in hand to avoid a position where you need to sell and have to compromise on your price.
Bridgehouse International: 020—7478 9253

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