Overseas property can be a "good idea" for pensions

Using property abroad to supplement a pension plan can be a "good idea" providing that sufficient research is carried out first, an expert has claimed.



Rhiannon Williamson, director of online property publication Amberlamb, said that diversification was the key to successful investment and that using bricks and mortar to compliment more traditional pension planning could be a good way to create diversification.

Her comments came after a survey from Self-Catering-Breaks.com revealed that almost 50 per cent of British second home owners have chosen to invest in property overseas as part of their pension.

The main factors this group looked for when choosing their overseas property were rental potential and buying in the right location, the poll found.

However, Ms Williamson warned that there was always an element of risk associated with investing in real estate and that this risk was potentially heightened when buying abroad.

Buyers need to research whether they are about to pay the right price for a property, whether rental or resale demand is strong and sustainable, and when planning to use property for retirement income should take a long-term view of the market, she advised.

"What so often happens is that people assume a foreign market works in a certain way when quite often the market, buying process and legal aspects of the property ownership process are very different indeed," she commented.

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