At a recent conference, property experts Property Frontiers urged property investors to learn all the legal requirements and perform all the necessary legal checks before buying an overseas property.  To achieve this, they recommended making sure the property had a clean land title and ensuring that investors ensure that they will own it in its entirety (rather than ‘part owning’ it).  These are two of the concerns I have always had when considering property investment abroad as I have heard similar horror stories from other buyers.

I have even come across stories of developments that have been stopped completely due to economic problems as well as situations where land has been reclaimed by local authorities for public infrastructure developments.

For me, UK investment property is a much less risky form of investment.  If I am going to invest in property I am generally committing a significant amount of money and so I do not want to gamble that money without being completely sure of the title of the property, that local searches are undertaken and that the development is secure.  I have never felt 100% confident in those areas when considering property investment advice in European countries and further afield.

The UK has a land registry with very strict laws on title and talented, experienced solicitors and conveyancers who can establish proper title and deal with other property issues that may arise.  I also like to research and know the area in which I am buying.  Whilst several fact-finding trips to Spain might seem very appealing, I can never fully know the property and rental market, neighbourhoods and other local issues from this far away.  Decreases in property values can also be much more pronounced overseas.

Knowing the market is the key when you’re looking to invest in property, and with language barriers, different laws, unusual tax regimes and different methods of purchase, property investment abroad is fraught with danger.  Would I buy shares in an overseas company I didn’t know much about?  No – I’d buy them in a UK based company that I could research and who I knew.  The same, I think, should be true for those looking to invest in property.