3 tips to follow when buying abroad - Video script

John Fitzsimons looks at what you should always do if you fancy buying a property overseas

We may be enjoying a few weeks of sun in the UK at the moment, but for those Brits that are determined for this weather to be the norm, buying a property overseas can be very tempting.

If you’re thinking of buying a property abroad, be sure to follow these three tips.

#1 Buying the right property

An obvious place to start but the success of your overseas purchase really does depend on how good a choice you make at the outset. Just because you had a nice week’s holiday in Malta doesn’t mean that it is the right place for you to buy a holiday home. How often will you be going back? Will the journey from the airport start to get you down?

And how long before you get bored of the place?

Try to take  a step back and view the whole process a little rationally before you hand over your cash.

#2 How to pay for it

The money involved with the purchase also requires a bit of forethought. It’s important to arrange an Agreement in Principle for your mortgage before you sign any contracts or hand over any cash.

You’ll also need to decide what currency you want to pay your mortgage in. If you’re going to be paying in a different currency, the Euro for example, then it’s really important to give yourself a little leeway either side in case of currency fluctuations. You may be able to afford the mortgage fine at the moment, but if the value of Sterling plummets, it might get a lot harder.

#3 The exit plan

Whenever making an investment, whether it’s shares in BP or a property in the Maldives, it’s essential to put some thought towards your exit strategy. You may have fallen in love with a converted barn in the middle of nowhere, but that doesn’t mean others will!

Unless you plan to own the property forever, it pays to put some serious thought into how and when you are likely to want to sell up.