Why overseas property purchases need advice

All the recent evidence suggests that UK property buyers are keener than ever to buy property overseas , whether for residential or investment purposes. Surveys by Barclays and Yorkshire Bank have shown a large increase in the number wanting to head for somewhat sunnier climes, a trend widely attributed to the desire to escape the British weather following the wet summer.

But there can be no doubt that large-scale investment in overseas property is already an established industry. The International Property Investment pavilion (IPI) 2007 Report, which was released this week, shows that Britons spent over £20 billion on overseas bricks and mortar while the total number of people now owning a property beyond these shores is now over a million.

Commenting on the findings, IPI show manager Siobhan McAfee said: "In the past three years, the international property market has become an increasingly attractive investment vehicle," adding: "This trend looks set to continue with research indicating that 35 per cent of IFAs will be giving overseas property advice within the next three years."

The involvement of independent financial advisors (IFAs) is a pretty good idea for those looking to get involved in the overseas market, according to the ifs School of Finance. The school, well known for its campaigns to get more financial literacy teaching into the school curriculum to prevent the next generation getting into bad debt, is also keen that overseas property investors don't go down the wrong path.

Mark Roberts, head of financial education at the school, stated that the funding was the main issue such an advisor would get involved in, saying: "An IFA, by their very nature, is there to serve the interests of the customer, so if the customer is eager to invest in overseas property then the likelihood is the IFA would be promoting the best ways of the funding of the purchase."

However, he added, many IFAs were not very well qualified to deal with the various pitfalls potentially lining the route to a foreign investment. Noting that "the average IFA is not going to know all the ins and outs of the property market and the particular legislation that's required", he suggested that specialists IFAs were the best way to go.

There can be little doubt that those looking to invest in property overseas should get the best advice and as much information available before they start and get it from the best informed sources. With so many different laws on tax, inheritance, ownership rights, land registration, tenancy rights and other issues, investing blind risks all kinds of problems ahead. With so much invested in foreign bricks and mortar by Britons, there are 20 billion reasons a year to ensure the best help available is made good use of.

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property