Investors 'should look to France and Spain to ensure money is safe'
Overseas property investors might be better off putting their money into established markets like France and Spain than gambling on potentially higher returns in eastern Europe, it has been suggested.
Speaking to the Eastern Daily Press, David O'Donnell, an employee of Irish-based legal firm Tom McGrath & Associates, noted that many investors in emerging markets such as Bulgaria were putting themselves at risk by trusting dishonest estate agents.
"In some cases, buyers are signing contracts where the property is valued at much less than they are paying, in order to avoid more tax, at the behest of property agents," Mr O'Donnell told the regional newspaper.
According to Mr O'Donnell, paying more to an estate agent than is suggested on paper to reduce payable tax is an act of fraud and could therefore land investors in hot water.
As a result, the safer havens of France and Spain could be better prospects.
Reports in the Birmingham Mail suggest former MG Rover boss John Towers is one of the many people to have invested in French property recently.
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