It is important but at the same time it is very much a question of what you’re trying to do with your investment. If there are risky areas or risky countries in your portfolio, a diverse mix means there is hopefully something else to counter that.

We’re not quite thinking of investment property in terms of the stock market yet so some investors may consider a stock market approach but I think 80% of people buying abroad now are not treating it as they woul

When it comes to investing your cash in overseas property, the road to strong returns can be rocky. Knowing how to create a balanced portfolio and make that portfolio work for you requires a little bit of luck and a lot of know how.

For the first time investor, choosing where and what to invest in is the first step towards a desirable portfolio. In order to avoid the pitfalls, overseas investment property specialist, Charlie Pritchard of David Stanley Redfern Ltd. has the following advice…

A number of factors come into play when you talk about a balanced portfolio. The first thing to consider is obviously the amount you have to invest initially. If you have two hundred thousand pounds for example you can do a lot more than you could with fifty thousand pounds. If you are looking to buy one or two properties, especially on a small budget, you also need to consider closing costs.

To talk about a balanced portfolio depends very much on the monies you have and what you’re planning on doing with it i.e. whether you want a quick return or a longer term pension fund, racking up the return.

1. Should a balanced portfolio include a mixture of property types, property areas, property values?

A balanced portfolio can be as general as that. It doesn’t need to include different property types but diverse property areas or countries are favourable. For a balanced mix you shouldn’t put everything in to one country however good it may seem.

We do have clients that buy exclusively in one county but from a balanced point of view it makes sense to look at different countries, e.g. buy one property in Egypt, one property in Brazil and one in Cape Verde. A range of property types is not so important as you can buy villas or apartments in various countries.

2. How important is it to have a balanced portfolio?

It is important but at the same time it is very much a question of what you’re trying to do with your investment. If there are risky areas or risky countries in your portfolio, a diverse mix means there is hopefully something else to counter that.

We’re not quite thinking of investment property in terms of the stock market yet so some investors may consider a stock market approach but I think 80% of people buying abroad now are not treating it as they would

ern Ltd. has the following advice…

A number of factors come into play when you talk about a balanced portfolio. The first thing to consider is obviously the amount you have to invest initially. If you have two hundred thousand pounds for example you can do a lot more than you could with fifty thousand pounds. If you are looking to buy one or two properties, especially on a small budget, you also need to consider closing costs.

To talk about a balanced portfolio depends very much on the monies you have and what you’re planning on doing with it i.e. whether you want a quick return or a longer term pension fund, racking up the return.

1. Should a balanced portfolio include a mixture of property types, property areas, property values?

A balanced portfolio can be as general as that. It doesn’t need to include different property types but diverse property areas or countries are favourable. For a balanced mix you shouldn’t put everything in to one country however good it may seem.

We do have clients that buy exclusively in one county but from a balanced point of view it makes sense to look at different countries, e.g. buy one property in Egypt, one property in Brazil and one in Cape Verde. A range of property types is not so important as you can buy villas or apartments in various countries.

2. How important is it to have a balanced portfolio?

It is important but at the same time it is very much a question of what you’re trying to do with your investment. If there are risky areas or risky countries in your portfolio, a diverse mix means there is hopefully something else to counter that.

We’re not quite thinking of investment property in terms of the stock market yet so some investors may consider a stock market approach but I think 80% of people buying abroad now are not treating it as they woul

portfolio depends very much on the monies you have and what you’re planning on doing with it i.e. whether you want a quick return or a longer term pension fund, racking up the return.

1. Should a balanced portfolio include a mixture of property types, property areas, property values?

A balanced portfolio can be as general as that. It doesn’t need to include different property types but diverse property areas or countries are favourable. For a balanced mix you shouldn’t put everything in to one country however good it may seem.

We do have clients that buy exclusively in one county but from a balanced point of view it makes sense to look at different countries, e.g. buy one property in Egypt, one property in Brazil and one in Cape Verde. A range of property types is not so important as you can buy villas or apartments in various countries.

2. How important is it to have a balanced portfolio?

It is important but at the same time it is very much a question of what you’re trying to do with your investment. If there are risky areas or risky countries in your portfolio, a diverse mix means there is hopefully something else to counter that.

We’re not quite thinking of investment property in terms of the stock market yet so some investors may consider a stock market approach but I think 80% of people buying abroad now are not treating it as they woul

d mix you shouldn’t put everything in to one country however good it may seem.

We do have clients that buy exclusively in one county but from a balanced point of view it makes sense to look at different countries, e.g. buy one property in Egypt, one property in Brazil and one in Cape Verde. A range of property types is not so important as you can buy villas or apartments in various countries.

2. How important is it to have a balanced portfolio?

It is important but at the same time it is very much a question of what you’re trying to do with your investment. If there are risky areas or risky countries in your portfolio, a diverse mix means there is hopefully something else to counter that.

We’re not quite thinking of investment property in terms of the stock market yet so some investors may consider a stock market approach but I think 80% of people buying abroad now are not treating it as they woul

It is important but at the same time it is very much a question of what you’re trying to do with your investment. If there are risky areas or risky countries in your portfolio, a diverse mix means there is hopefully something else to counter that.

We’re not quite thinking of investment property in terms of the stock market yet so some investors may consider a stock market approach but I think 80% of people buying abroad now are not treating it as they would a stock market investment.

3. Even if you invest in just a few properties, is it advisable to opt for a diverse mix or should you stick to an area that you know well?

With any purchasing I would suggest that you go for a few properties. If you have ?200,000, it may be nice to go for just one property but I would suggest going for three or four. If one is doing particular well then put a bit more in if possible.

Of course, it’s useful knowing a particular place well but you need to do your research for any country that you want to invest in before committing to a purchase. Even within a country you know well, each development and resale property is different. The same can be said for different areas of the same country so you can never sit back and say ‘yes I know this country well enough’.

4. What are the key points to consider?

When looking at a property there are a few points to keep in mind. Value for money is obviously the greatest one as this will have an impact on other areas of your investment.

You must also ask yourself what the investment is for. These two often go hand in hand i.e. are you buying as second home or is it purely for investment.

Very often buyers will look for low running costs and low cost of living in the host country. If the property doesn’t cost too much to support, any rental income is then for the direct benefit of the owner.

Climate is also important. We’ve seen a slight shift in this recently as more and more investors are looking at Canada due to its skiing facilities. Again, others just want to buy somewhere in sun.

If the property under consideration is for investment, you should also give some thought to the location. Do you want something in a holiday resort or close to the city centre? If you’re buying in Egypt you’d buy in Sharm El Sheikh as i