Investors need to seek expert advice

People who are purchasing an overseas property don't always take professional advice despite the fact they wouldn't do the same in their own country, leading experts are warning.

According to Barclays Buying Abroad, foreign property buyers need to remember that each country has its own rules and should therefore not be compared with their own.

Suzanne Clay, business development manager at the firm, said that while this may sound 'obvious', it is very important for consumers to be aware of these differences.

'Taking professional advice is crucial. Find a local solicitor or a specialist solicitor in the UK but do your homework,' she said.

Ms Clay added that buyers of property abroad should also seek advice on tax issues in order to understand the financial implications of owning a foreign residence.

Meanwhile, similar advice has been issued by the BuyAssociation website. Paul Collins, property editor at the online portal, said people should not behave differently when buying a residence in another country.

A D V E R T I S E M E N T

Specifically, he said consumers should take the same precautions they would if they were buying at home, such as getting legal and tax advice.

The advent of the credit crunch makes it even more important to seek advice on the financial side of property investment. 'I think the obvious answer in today's climate is that if you have the money free to invest fine, but if you need to borrow money to do that then that is not so straightforward,' said Miranda John, international manager with Savills Private Finance.

She points out that if you are trying to raise money in the UK, obviously what you could raise six months ago just will not be available. 'The reduction we are seeing in base rates are, at the moment, not being passed on so potential investors need to take very specific advice on whether it is a financially astute decision for them to raise money in the UK,' Ms John added.

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