These days there is so much choice when it comes to to buying abroad that deciding where to start looking can be a little bewildering.

What's your budget?
The biggest influence upon your choice of destination is, obviously, going to be your budget:
You need to consider not only how much you can afford to spend on the property, but how much you can afford to spend in terms of on-going maintenance of the property. Stick firmly to your budget as there are always extra expenses that you will incur when buying property abroad.

What are your priorities?
The next vital step is to work out your priorities as a buyer:
Do you want to buy somewhere to relocate to, are you looking for a second home for your use only, a second home with rental potential, a buy-to-let property, or are you buying purely for capital gain?  If you are making a permanent move, ask yourself if the culture, climate and facilities in your short-listed destinations will genuinely suit you?  If you are looking for a second home with rental potential  don't be lured into a false economy: buying cheaply could offer less value for money in terms of how much rental revenue you can expect.

Ask yourself whether a period property or a new build would best meet your needs. An older property may cost more to maintain, but a new property may come with more maintenance charges. In terms of rental potential a newer property with a pool may be more appealing to families. Don't forget how a country's climate can impact upon your plan to holiday in or rent out a property overseas.

Location location location
Some people will decide to buy somewhere based on an enjoyable holiday, but if you are looking to make a canny investment it's not as simple as choosing an 'emerging' market. This does not guarantee you'll make money!

Generally buying in an established destination means you are making a secure tried and tested investment, whereas buying in an emerging market tends to mean you are getting more for your money and the possibility that you might make a profit some way down the road. Do you prefer the town or the country? Do you want to be inland or on the coast? If you are buying in a seaside resort then the nearer to the beach the better. Nearby shops and restaurants are also a bonus.

Transport links in the destination are pretty important: the attractiveness of a destination as both a tourism destination and property hotspot are fairly dependent on ease of access. Proximity to an airport and regular flights are a definite plus point for a property. The state of a country's economy will influence house prices; a booming economy will generally drive up the cost of property. 

Research
Once you've decided where you want to buy and what you want to get out of your property it is important to research the properties available and the prices in the area before
spending money and time on inspection trips or, even more importantly, making an offer on a property.

Internet research is certainly a good starting point. Look at a range of property agents' sites to compare prices; use search engines to find out more about your destination of choice; visit the country's embassy website as they will have answers to some of your questions.

Country guide books are useful, and there are plenty of books on the market about buying property abroad. 
 
Once you've done a certain amount of research from home there will be only one thing for it and that's travelling to a particular area and spending time in it. You need to ensure you're looking at the areas of a country that will meet your aspirations for your holiday home in the sun.

Top Tips
Try to visit the location at different times of the year and day to make sure that the town doesn't completely shut down outside of tourist season, or turn into clubber's paradise come the evening.

Talk to expats who have already bought property in the country. They will have inside knowledge to help you make a sound decision.

Check out the planning permission rules in the country you're buying in. You may need extra permission if you plan to renovate the property.  

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Article published in December 2006