A place in the sun is burning a hole in many foreign property owners' pockets. Although the purchase of a holiday home abroad is the latest status symbol, many buyers are unaware of the legal issues and costs involved.

No doubt the lifestyle promised by sandy beaches and golf courses is extremely enticing.

Despite its popularity, the main message coming from industry professionals and consumers groups in relation to the trend is - buyers beware.

The first step in making the decision is to examine the real motivation for purchasing a property abroad.

Individuals fall broadly into several categories says REA Mortgage Services' Mr Richard Eberle. "It's either someone with a lot of money looking for a holiday home, those who can't afford to buy a house here but want to get on the property ladder abroad and people looking at it from an investment point of view," he said.

In addition, retirees are increasingly looking for properties in European states with superior standards of living.

As ever, location is the key consideration when buying a home or apartment. Potential buyers should make every effort to educate themselves about the area in which they would like to buy. This includes future development plans that may affect the value of the property.

Mr Eberle believes the foreign property trend is a very strange development. "In terms of a holiday home, the cost involved in acquiring and managing the property each year would be the same as spending two or three weeks holidays here in the best hotel in town," he said.

Realistic budgeting will help buyers make a decision with which they can live. Mr Eberle says there's no such thing as a guarantee on rentals. "In some locations, estate agents should be able to provide an estimate of rental rates and how often you can expect to rent but you need to be extremely conservative with these assumptions," he said.

Those looking for a home abroad should be able to make mortgage repayments without relying on rental at all. That way, any additional funds are a bonus not a necessity.

Some additional yearly expenses include management company fees, regular maintenance, electricity, cleaning and insurance.

Choosing a property agent is another important consideration. "If I were buying property in a foreign country with a different legal system the only prudent way to do it is with someone who is reputable to you here," says Mr Eberle.

In general, the over-reliance of buyers on the estate agent, due to language barriers, is a concern. Once the property is sold, the buyer then must rely on the local management agent or construction company involved.

Bank financing may be a problem. Generally speaking, most property financing is done locally as those banks will be more comfortable lending assets within their jurisdiction. Interest rates may be far less favourable than those on offer here.

Irish lenders may finance purchases abroad but they rely on assets here to secure the loan. This means your primary property must be remortaged to obtain the extra cash for a foreign property purchase.

Some foreign estate agents encourage consumers to put down a small deposit, such as £1,500. Mr Eberle says the customer's deposit does not represent a sale but the builder's bank may make him a loan on the basis that he has a commitment from a purchaser. "I'd be very nervous about who I'm paying a deposit over to though," said Mr Eberle.

In Spain, consumer groups advise potential buyers to ask the seller for their name, address, telephone number, company name and tax number. They may also request bank account details.

Often, purchasers have no idea about the financial and legal issues involved when buying a foreign home. In some situations, individuals are being far less vigilant about this situation than when purchasing their own homes here.

Individuals need to be very clear about why they are doing this, particularly if the property is an investment.

Potential buyers are going in with a Dublin mindset or the belief that prices will appreciate abroad the way they have been appreciating here over the last number of years. In most markets, property prices only move up with the rate of inflation.

"If they go in thinking it will appreciate 5-10 per cent a year they're kidding themselves," says Mr Eberle.

Spain is still the most popular place to buy property. The majority of queries to Spanish Consumer Associations and Municipal Offices of Consumer Information (OMICs) relate to problems arising from disparities between what the purchaser believes he has bought and what is delivered to him in the end. Many of these problems are attributed to lack of information on the conditions and characteristics of the accommodation. Under Spanish consumer law however, information is a basic consumer right and specific details must be provided to buyers before the sale is completed. Ensure that any contract which is signed reflects your belief in what is to be received. Do not rely on visual images provided by the seller unless they are specifically and permanently included within the contract.

Although purchasing property abroad can be rewarding personally and financially, due diligence is required when considering such a big decision.

Consumers need to realise "they are buying something far from home that they have very little control over", says Mr Eberle.