Top tips for buying property abroad

Buyers should beware of linguistic, legal and taxation differences

At the end of a long period of rising house prices at home, more and more people are looking at buying abroad.

In 2005, UK residents bought foreign property worth a total of over £1.6bn.

The market is traditionally split between those buying-to-let and those buying a home to live in, as either a main residence or a sunny second home.

Older buy-to-let investors have been joined in recent years by a new breed of buyers.

Only option

Increasingly a number of young people priced out of the British market have been looking overseas as the only option for buying a first property.

And whilst prices in most UK regions have hit a plateau, several European countries' markets are still rising.

Those considering buying abroad need to be prepared for a rough ride though, with language and legal difficulties, tax variations and currency risk to worry about.

And there is often an explanation for seemingly 'cheap' property.

Eastern Europe

Buyers in the poorer parts of Eastern Europe for instance should not expect their bargain detached home to appreciate to British levels anytime soon.

In the first of Rachel's two-part special investigation, she looks at the most popular places to buy and hears the story of one recent investor.

You can choose narrowband or broadband by clicking on the video link below and selecting 'settings'...

VIDEO: Buying Abroad - Part 1

In her second film she looks at the nitty-gritty of what to do once you've found your perfect property.

VIDEO: Buying Abroad - Part 2