'Plan carefully' when buying overseas property

Brits looking to transfer money overseas and invest in a second home have been advised to thoroughly research an area before making a purchase.

Andy Bridge, managing director of A Place in the Sun, explained that buying a property abroad is a "serious business" and needs to be approached in the same manner as if it was in the UK.

He warned people to be diligent when deciding on whether they can afford a home in a foreign country and to think carefully about the location.

Individuals were advised that in the current economic climate it is wise to avoid choosing to invest in a destination that is reliant on budget airlines to keep the cost of travelling to the nation low.

"You are far better off choosing a property in a country you love, in a location well-served by travel connections ... and taking a realistic view of the likely rental yield," Mr Bridge stated.

It was suggested that purchasing a second home can provide people with the opportunity to escape the UK several times a year and enjoy life elsewhere with friends and family.

Many individuals are believed to see an overseas property as an investment, which they can not only visit but also rent out.

However, Mr Bridge noted that in the current economic climate it is difficult to select one particular country where prices are set to rise and a good return can be made.

As a result, investors were advised to be sure they can afford a second home and establish a plan that will ensure they are protected against "currency variations".

Recent research from the Worldwide Property Group revealed that more Brits (67 per cent) would rather purchase a house abroad than in the UK.

Posted by Sarah Pitton

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