Advice crucial to overseas investment

Investors hoping to buy property on foreign soil should seek detailed advice before making a purchase, it has been claimed.

According to Savills Private Finance, talking to specialists is crucial to the process of overseas purchase, especially in regards to loan financing.

Miranda John, international manager with Savills specialist financial services division, claimed that the advent of the credit crunch made expert advice even more pertinent.

"I think the obvious answer in today's climate is that is fine if you have the money free to invest elsewhere, but if you need to borrow money to do that then that is not so straightforward," she said.

"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.

Meanwhile, research by the Association of International Property Professionals, has revealed that Spain is the most popular overseas property destination, with 31.6 per cent share of the market.

Overseas Property News posted on 06/05/2008 16:28:32