Types of Investment Properties

Whether it's your first property investment or you already have several under your belt, you need to have a clear idea in your own mind of why you are buying it. Is it purely for investment or part investment or part second home / holiday house? List down what exactly it is that you are looking for. A good way of doing this is to make a checklist of requirements that a suitable property would meet. This will help you to keep focused.

If you are looking to buy purely for investment, try to forget your own personal preferences - this is not somewhere for you to live in, it is something that is going to make you money. You may find that buying a flat in a foreign city to rent out to permanent tenants makes more sense than buying a holiday home, where frequent changes mean the running costs can go sky high.

But if you want a place that doubles as a holiday home, try and get the right balance between giving yourself enough time to enjoy holidays there, and maximising your income by letting the property for a big a chunk of the year as possible.

If you still know the area well and are confident of your marketing skills, you may benefit from buying somewhere unusual and off the beaten track and renting it to a particular market. Otherwise you will want to keep to the established areas or even buy a property with an established letting record.

Consider the frequency with which you will use the property, think about the distances from airports, rental potential and long term investment - establish a budget and remember to include the costs of fees associated with the buying process.

If unobstructed views are a priority, consider homes which are beachfront, frontline golf or elevated positions and always ask if further development is planned for the area.

The location of the property is an important factor in a person's final decision. When buying a property you need to be sure that it suits your personal needs (work, education, transport and lifestyle).

Other things to consider are:

• Are you looking for a new or resale property
• Climate (all year round)
• Number of bedrooms/bathrooms (for visitors)
• Noise
• Type of property
• Direction facing (affects light)
• Method of heating / air conditioning
• Age of property
• How long it has been on the market (resale)
• Tourist attractions
• Other facilities

Get out there and look

Try to view as many properties as possible to give you an idea of what is available and what house prices are like in your area. Weigh up carefully the pros and cons of having a property in the country and region you are considering buying in. Take at least two trips out there and try and rent a place nearby in peak and off peak holiday seasons. Finally, do not buy a property without visiting it first.

Properties in Cities:

These can be a good buy offering long and short term rental opportunities. Also depending on the city holiday lets can also be very popular. If your funds are limited, countries who joined the EU in 2004 and to join 2007 are worth watching for capital growth.

Golf Course property

Finding a property in a tourist area with a pool will always be a safer option for rental during the summer months. Having a property linked or on a golf course offers all year round rental. With the peak time being during the UK winter months. You will however pay more of a premium for these properties.

Skiing

Property prices can vary greatly in ski resorts. Buying close to the centre of a major resort and ski lifts can be relatively expensive, whilst buying 1-2kms away can be very reasonable. This obviously offers great winter rental opportunities for skiers. It also however, offers great summer rental as well if the property is next to beautiful lakes and in and around national or regional parks, which can be very popular with walkers and summer holiday makers.

If it's purely as an investment on capital growth consider newer, less established resorts as well the popular well known ones.

Restoration

In recent years buying a run down property as either a development project or for investment purposes has become very popular in France . A great number of the older stone houses on the market are in need of work to put them in good order, having either been left empty for years or just generally neglected. Many people who contemplate buying a property in France have already considered undertaking a restoration project to some degree.

There is obviously a danger in buying property in a run-down condition, but if you follow certain rules you will minimize the pitfalls and maximize the chances of your renovation being a profitable investment property. These rules can be used as rough guidelines for most countries. Please see countries for more specific information.

Research and ground-work in the beginning will pay dividends later. Make contact not only with agents but with architects, builders and even surveyors if necessary to obtain as much information as possible prior to your visit. Follow some simple ground rules:

1. Fix your budget and don't take on anything that will obviously pass your limits.
2. Don't buy on impulse ; it is better to come back and take another long look.
3. Take notes and photographs as a reminder; one hour processing exists in France too!
4. Ask to see for yourself that there is a supply of electricity and that this supply is adequate.
5. Check the condition, if any, of the fosse septique ( septic tank ). Should a new one be necessary, is it possible to install one successfully.
6. Ensure that there is a 'town' (mains) water supply .
7. Have a copy of the 'cadastre' ( land registry ) plan for reference.
8. Check that the roof is in good condition , the ridge line is straight and roof timbers (the charpente) are sound.
9. Always ensure that there are no major repairs required to the house which are obvious but which you are told are 'mere trifles' - structural repairs are just as expensive in France as anywhere.
10. If in doubt - instruct an Expertises - a French Surveyor , who can advise you on the condition of your prospective home as well as how much it will cost to put right. See the section on Surveying in France.
11. Seek local advice . A great deal of information can be obtained from 'the locals'.

Keep every single receipt for building work carried out on a property so that these costs can be set against the perceived 'gain' on the resale of the property for French Capital Gains Tax.

You will also find that fixtures and fittings on the continent are a lot cheaper than in the UK, in fact people renovating or just giving their properties a face lift in the UK often go to the huge superstores in France for fittings and save themselves a fortune.

With enough good pre-planning, it is entirely possible to turn a borderline ruin into a beautiful rentable and profitable property, or the retirement home you always dreamed of.

Pros & Cons of various properties