Paying over the odds for properties: One practice in the market is to offer a guaranteed rental income over a certain period, but these guarantees are often paid out of an artificially inflated asking price. It is also said that Irish people pay the "Paddy price" for properties in some countries.

Assuming that the only way is up for property prices: There is an oversupply of properties in some markets, which can prove costly when owners move to sell. Some countries, including France and Portugal, have planning restrictions that may ease the overcrowding problem.

Relying on the rental yield to cover the cost of the mortgage: In the emerging markets of eastern Europe, rents can be hit and miss, meaning investors will usually be counting on property prices taking off in the next decade.

Using the family home as security: This is a dangerous move because if the overseas investment goes wrong, buyers could lose their family home.

It is better to either secure finance on the overseas property, or if finance is not available locally, release equity from an existing Irish investment property.

Failing to get independent advice: Letting the developer or the estate agent handle the entire transaction without hiring a tax adviser and solicitor means buyers increase the risk of running into problems with the title, unexpected tax liabilities and disappearing deposits.

Failing to budget for transaction costs: Buying property is expensive: there will usually be solicitors, surveyors, agents and management companies that need to be paid, plus local taxes, levies and borrowing costs to take into account. Outside the euro zone, currency considerations will come into play.