May be there should be a checklist of key questions for foreign property investment, things like:
- have you visited the country in question?
- what form of government is in place? Are there any socio economic issues?
- what's the legal position regarding foreign property ownership, land title, inheritence etc.
- what tax allowances are in place, what does income & CGT look like, is there a dual taxation agreement in place?
- what tax incentives are in place, who are they aimed at, how do they work? (e.g. lease backs)
- are there any currency risks involved? Is EU & Euro membership pending?
- how will a mortgate be secured (IRL or abroad), what are interest rates?
- what's the purchasing process, how does biding work, when is a contract in place, what role do lawyers, surveyors, notaires etc. play (& how does it differ to how things work here).
- what's the exit strategy, how do I sell? what are the consequences/costs if I sell early?
- who's selling, what's the background of the seller?
- how does the property/development in question compare to other properties in the local market? what are local market rents like?
- (for holiday homes) How long is the "season", what's the off season like?
- (for normal homes) What rights do tenants have, how does the rental process differ to Irl? What will a property mgmt agency cost?
- what percentage of your property & overall investment portfolio will this represent?
Off to the pub now for some more inspiration