Mediterranean meditations

Buying a property abroad and getting rental income from it is an idea which attracts many - but where do you start? Which are the most favoured holiday destinations and what type of property should you opt for? The Mediterranean destinations are always popular and, along with Portugal, many Brits choose to holiday in countries such as Spain, Italy, Cyprus and Greece. But doing your research before buying is crucial, says Oonagh Karanjia from Crete Property Consultants: "Finding a property which [the client] hopes to rent out is a common request, but the market here in Crete is very different to somewhere such as Spain's Costa del Sol where there is more of a market for two-bedroom, two-bathroomed apartments."

Karanjia finds that tourists to Crete visit for diverse reasons. "You're just as likely to find botanists or people who are interested in archaeology. They do like the sea but they don't tend to be the sorts of people who want to roast on beaches like sausages."

Crete is a long, thin island; the coast is never far away, and while pockets of "18-30" destinations do exist, most tourists prefer rural locations where they can enjoy solitude. "They don't want to be woken by hotel doors banging, and they like being in villages where there are no other English people and they can wander down to the local taverna or bakery," adds Karanjia.

Crete Property Consultants' clients are made up of one-third of buyers who want to retire to the island, a third who want to use the property themselves and occasionally let it, with the remainder buying purely as an investment, according to Karanjia. She has sound advice for buyers who are thinking about renting out a property, whatever their chosen destination: "Buy something which you really love and where you would want to spend time. It is pointless here to buy an apartment as you will be competing with tour operators, and where is the value there?"

Karanjia used to let her own house, a traditional Cretan building with courtyard. "I could rent out permanently if I wanted." She now spends so much time on the island, she no longer lets it, but Crete Property Consultants are currently selling a range of properties which would appeal to holiday makers and give buyers a good income. For £50,000 they have a pretty one-bedroom house in the village of Hamezi in the north-east, which has a roof terrace and balcony and could net owners around €40 (£27) nightly in summer months. But off-season trade is increasing too. "We get a surprising amount of winter visitors, considering that you have to change planes in Athens, but they come for the less frenetic, more laid-back lifestyle."

Transport links are crucial when buying a holiday home and Mike Hayes, editor of Homes Overseas magazine, says: "Where cheap airlines open up and holidaymakers go, buyers inevitably follow." Buyers should keep an eye on up-and-coming holiday destinations such as Croatia, which was recently voted one of the top 10 favoured holiday spots. This year 20 new holiday companies will operate there, and British Airways has extended its flight schedule. Croatiansun's Paul Keppler says: "We've seen dramatic increases in the number of UK tourists and buyers coming to Croatia in the past few years. It is one of the most unspoiled and rewarding places to live. The weather, the warm welcome from locals and the cost of living make buying here worthwhile." Like many selling agents, Croatiansun handles all rentals after buying, which can give buyers guaranteed returns; but again, research into the letting season before buying is vital.

Both northern and southern Cyprus are good summer and winter destinations, thanks to the climate and expanding golf facilities. Suresh Hiremath is typical of the growing numbers of Brits who are buying there for pleasure and investment. He owns several properties on the island including a villa at award-winning development Aphrodite Hills and several apartments bought through Cybarco. "As soon as I saw the island I fell in love with it and decided to invest there."

Hiremath currently nets around £1,900 a week for a three-bedroom villa with pool and gets £850 a week for a two-bedroom, two-bathroom apartment. Cybarco are currently selling a range of properties that would be ideal for rentals. These include Adonis Village near Paphos, part of the Aphrodite Hills development, where one-bedroom apartments have just been released from CY£109,000 up to CY£232,100 (£125,000-£270,000) for three-bedroom terrace houses.

Hiremath believes that there will always be a market for tourism in Cyprus, which is continually improving its infrastructure to attract more tourists and buyers. Since buying, he has seen capital growth of around 40 per cent each year, and while he has sold some properties on, he is keeping some for his own use. "I intend to retire there myself one day, if work ever allows."

Crete Property Consultants:

020-7328 1829; www.creteproperty.co.uk

Croatiansun:

0038 520 312 228; www.croatiansun.com

Cybarco:

020-8371 9700; www.cybarco.com

Steps in the right direction

* Do your research thoroughly before visiting your chosen destination. Once you're there, it is tempting to sign on the dotted line when you may be under pressure to do so.

* Read as much as you can on the subject. There are countless books on buying abroad and specialist publications and websites can be excellent starting points.

*Use reputable agents. The Federation of Overseas Property Developers, Agents and Consultants (FOPDAC) is a good starting point.

* Make several trips before buying and, if you're planning on spending any length of time there yourself, visit out of season.

* Decide before buying exactly what you want from your property.

* Buy somewhere which gives you a choice of transport options. Relying on one carrier who then pulls out can be disastrous.

* Always make use of independent legal and financial advice.

USEFUL PUBLICATIONS

Homes Overseas magazine; French Property News; Viva España magazine

WEBSITES

www.newskys.co.uk; www.fopdac.com