I was watching a property programme the other night, and pondering the fate of a couple who were complaining that the villa they’d bought in the Valencia region of Spain had turned out to be illegal. As they moaned on about their financial crisis, the following was revealed:

(reporter) “So did you get a lawyer to check out the property before you handed over your money?”

(sheepish-looking couple) “Well, not exactly, we just thought that everything would be ok…”

And I asked myself, why do people inflict such pain on themselves in a way that they wouldn’t do at home? I mean, can you imagine buying a house in the UK for example, and NOT consulting a lawyer about it? Of course not. People would rightly accuse you of being mad. So why do it abroad? And it got me thinking; why not put together a guide? You know, like the Seven Deadly Sins or something. So here it is:

Sin 1: Not thinking about location. This may seem obvious, but you’d be amazed how many people buy property without a clue over how they are going to get there! Check out the transport situation. Is it close enough to the airport, for example.

Sin 2: Relying on being able to resell. Don’t assume you can resell your chosen property without a proper consultation with your agent. You need to make sure it has something which makes it ‘resellable’ compared to other developments. In real estate jargon, this is called the ‘exit strategy.’

Sin 3: Making your heart rule your head. Don’t let the sun, sea and sand of your chosen dream location obscure the reality that you are basically making a financial investment – so make sure you actually have enough money (cash or mortgage) to make it work.

Sin 4: Not understanding the payments. Off-plan property is usually paid for by a staged payment schedule, including an initial deposit. Make sure you know how much you need to pay, and by when.

Sin 5: Assuming that a rental market exists. Don’t assume that you’ll be able to rent out your property to pay for the mortgage. However, some off-plan deals come with guaranteed rental plans, so go for those if you spot them.

Sin 6: Not considering exchange rates. Transferring money from your local currency may leave you at the mercy of daily exchange rate fluctuations. It may be an idea to book a favourable rate in advance, with a professional money exchange broker.

And finally, back to our friends on the TV…

Sin 7: Not getting a lawyer. Don’t even think about investment property abroad without consulting a lawyer, because if it all goes pear-shaped you’ll only have yourself to blame. And no amount of appearances on property TV programmes is going to fix that…