With current overseas property scandals filling up the headlines what can you do to make sure you don't become one of the unlucky statistics, ask Shane McGinley.

Every year thousands of people stream through overseas property exhibitions with billions spent on a variety of different emerging and mature markets. Television programmes and magazines, catering to those buying abroad, are big business and inspection trips are leaving Dublin with greater frequency.

There have always been exposés in the newspapers about dodgy dealings. The Marbella market was dogged with scandal, disgruntled buyers have called Joe Duffy on Lifeline and RTE has done debates on it. However recent scandals and court cases have highlighted the need for buyers to be more vigilant, ith some agents calling for urgent regulation in the industry.

Regulating the Industry
"People are using overseas property to fund their pension and there is not enough being done to regulate the industry," says Michael Bolger, from Empire Consulting, a firm who offer buyers independent advice on the various phases of overseas investment. "If you buy shares there is the financial regulator and there are guidelines," says Bolger, who believes there is a nee for a strong regulatory body and a company register for overseas agents.

"Unlike commercial property investors who generally have a strong investment knowledge, the majority of overseas buyers are ordinary people, with relatively modest funds available, hoping to secure a good return and real capital growth by investing in attractive schemes in up and coming tourist destinations. We believe regulation would help protect people from making unwise investments with unscrupulous operators", says Gillian Ryan, associate director of Colliers Jackson-Stops International Homes and Residential Investments division.

Ryan believes regulation should cover a number of issues, not just advertising. "We believe that those marketing overseas developments should be required to show what due diligence has been conducted on the property developer, the construction company and the market. There should be regulations covering the information which must be given to a buyer entering into such an agreement such as a clear statement on all costs related to their investment - acquisiton, ongoing maintenance costs and exit costs - as well as an obligation to support any statements on yields, capital appreciation and so on with independent data showing how the market has performed historically," she says.

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