Buying abroad: don't panic

Despite the current economic woes, buying abroad can still be a huge success – if you know what you want, says Laura Latham

The recent reams of newsprint about global property markets may have given you second thoughts about buying overseas. Stories of owners trapped by negative equity or developers going bust are, unfortunately, now commonplace but they aren't representative of everyone's experiences.

Thousands of people have bought overseas and done very well. Providing you buy for the right reasons and do your research, there's no reason why you can't be happy, too.

David Dixon did everything right when he bought in Italy two years ago. Having worked and holidayed extensively there he was familiar with Italian culture and also understood the rental market.

His three-bedroom property overlooks Lake Maggiore and was purchased from a reputable developer. Dixon uses it several times a year for holidays, and rents it out for approximately 30 weeks a year, which nets him around £20,000.

"I'm very happy," he says, "My apartment is in a stunning location and appeals to families, so it rents well. I also have a good management company dealing with the day-to-day running of the property."

Dixon thinks people have too many expectations of owning overseas and believes investors are often naïve about the culture they're buying into. "In Italy, for example, there's a very relaxed attitude, so it can take ages to get anything done."

Like Dixon, it makes sense to buy somewhere you love, rather than making a decision based purely on investment. Then, if you can't rent the property or its value drops, at least you'll still be able to take quality holidays. Getting sound legal advice will also help you avoid common pitfalls, such as entrusting your money to a dodgy builder or buying somewhere without a clean title.

"I cannot stress enough the importance of doing your research and only dealing with reputable agents and developers," says Andrew Hawkins of Chesterton International. "Check how long they've worked in that area, their knowledge of the buying process and always seek independent legal advice."

Hawkins admits some owners have had problems but says "these are the exception not the rule. There are many happy owners out there who love their homes and have had positive experiences."

Laura McAlpine is also content, having bought in Bulgaria in 2003. She owns two homes: a three-bed chalet near the ski resort of Borovets and a four-bedroom villa on the Black Sea. "We're very pleased with both properties," she says, "they cost a fraction of anything similar in other European resorts and we have the best of both worlds."

McAlpine holidays in Bulgaria several times each year and rents her homes on an ad-hoc basis. The chalet cost £55,000 and the villa £100,000 and both have more than doubled in value since she bought them.

Contrary to the negative press Bulgaria often receives, McAlpine says she hasn't had any problems. She likes where she owns and her family have made close friends there, plus she says the quality of workmanship on her properties was high. "We love it and as long as we're enjoying Bulgaria there's certainly no rush to sell."

Zoldi BG: 01252 843 444, www.zoldi.com ; Chesterton International: 020-3040 8210, www.chesterton-international.com ; Pure International: 020-3031 2860, www.pureintl.com

Offshore investments: A beginner's guide

*Buy in an area you know and like. If your asset doesn't rent or appreciate at least you can still enjoy holidays there.

*Don't expect rental income to cover your mortgage. If you can't meet all the costs yourself, don't take the risk.

*Familiarise yourself with local planning laws, so that you're less likely to be conned into buying an illegal build.

*Buy through companies with a solid track record and get the best independent legal advice you can.