I think it is fair to say that the euphoric rise in the number of people purchasing property abroad that we were experiencing a few years ago has waned considerably in the aftermath of the credit crunch. That's not to say that it is still an appealing venture for many UK investors wanting to have a holiday home abroad. However, following numerous 'scandals' and plenty of stories of unsuspecting buyers coming unstuck, the overseas property buyer of 2010 is a far more diligent animal. Forewarned is forearmed - protect your purchase by avoiding these common buyer mistakes.

1. Not using an independent lawyer.

This has to be number one on the list! I am amazed at the number of people that I have come across over the years who seem to have left their sanity at the airport when they jumped on a plane to take part in an overseas 'Inspection Trip' and forgot to instruct a good independent lawyer.

Your lawyer is an invaluable asset in the buying process and it is important to enlist one that is on YOUR side. They will not only act as facilitator, but often as an interpreter between sellers, buyers, banks, agents and notary offices. It is important therefore that they are completely independent from your developer or agent, with no financial interest in your property purchase. Many people have made the mistake of thinking that the notary included in their purchase cost is a suitable substitute for hiring a lawyer. But notaries perform a very different role than that of a lawyer. They will be working for the government and will legally oversee the property transaction from start to finish to ensure that everything is done within the state's guidelines - they won't warn you about unfair clauses in the contract or advise you in any way.

A good lawyer, however, will look after your interests and do all the necessary checks like a a solicitor acting for you on a UK property purchase would such as checking planning, licences, transfer documents, title and advising you on inheritance law. Don't be pushed in to appointing the 'chosen' lawyer of the developer or agent. Whilst there is the argument that this lawyer may already be familiar with the property and there are economies of scale applying since all other purchasers are using the same firm, it is unlikely that they will be on your side completely. Having an independent lawyer not only provides you with legally binding security, it also ensures that your best interests are being protected.

2. Signing Contracts too Early

You may come under pressure to sign the Preliminary Contract in respect of your purchase - particularly if you are buying a new build property from a developer who may have strict rules on the amount of time you are allowed between expressing interest in a property (and effectively taking it off the market) and signing contracts.

Don't confuse the Preliminary Contract with the reservation agreement. This is something that you will be asked to sign early on in the process when you want to put your name down against a particular property. It is quite common for the Reservation Agreement to be signed whilst still in the UK or during an Inspection Trip and it is there to provide assurance to the developer that you are seriously interested in the property. It is usual to pay a holding deposit at the time of signing the Reservation Agreement (typically around £2000) but you should be clear about under what conditions this deposit may be refundable - very often it isn't!

When you sign the Preliminary Contract, you will usually pay the deposit (which can vary from 10% to 40% depending on the developers terms) and since you are at this point committed to buy, this is not returnable.

You should always check the terms of any refund policy on the Reservation Agreement and only sign the Preliminary Contract once it has been thoroughly checked out by your independent lawyer.

 3. Developer in Breach of Contract

If the terms of your contract have been broken - for example, if your property is finished later than expected - then you may be entitled to compensation. However, even if you know the work will not be completed by the agreed date, you will have to wait until after this to make a claim. The amount of protection you have in this type of situation depends on the terms of your contract - and specifications in contracts can be quite vague. Make sure your lawyer checks through the contract thoroughly and that you understand the full implications of a breach in the contract before you sign it.

Another scenario that British buyers have faced when buying abroad, is the developer actually going bankrupt before completing your property. If this happens, your course of action will depend on the type of guarantee stated in the contract. An 'extrinsic' guarantee means that the bank has accepted joint liability with the developer and therefore has a responsibility to complete the project. An 'intrinsic' guarantee, on the other hand, simply promises that the developer will refund any money paid if they are unable to complete the project. However, the harsh reality is that if they go bankrupt they may be unable to give you a refund.

You should get your lawyer to check through contracts fully and any guarantees that they come with before you sign.

4. Unrealistic Budgeting

Leveraging can be a great strategy in a rising market but it is important that you are aware of the risks and don't over-leverage your investment. Taking out a mortgage that is the limit of what you can afford could be dangerous if property prices fall. In this situation, you could end up in negative equity, or even lose your investment. Don't assume that if a mortgage is mentioned, that you will get it - lending criteria in other countries can be more restrictive than here in the UK.

Renovations on a property can often end up being more expensive than first thought, so it is important to factor these in when considering a property. Buying a property abroad has numerous additional costs, which are easily forgotten by buyers when considering their budget. There are fees for agents, lawyers and notaries as well as purchase taxes which can add another 10- 15% onto the purchase price of the property.

5. Whose House Is It?

With agents and multiple companies involved in overseas house sales, it can be a challenge to work out who the 'seller' actually is. Agents can often seem like they are selling a property, when in fact they are doing so for a third party. Due to this, unsuspecting buyers could end up paying for a property that ultimately they don't own. This situation could be avoided by getting a lawyer to check through the paperwork and contract before you sign. If the seller doesn't infact own the property or the land, a lawyer can inform you of this and the reasons for it. Having the appropriate planning permission is no longer something to feign ignorance about as a foreign buyer, so it is important that the relevant checks are done before committing to the purchase.

As we all set our minds to Christmas shopping, strategies for coping with the ?in-laws, parties and silly stuff, what does the Christmas season spell for the property developer?

1. Auction rooms are quieter - generally there are fewer people winding their way into the auction rooms from late November onwards. This means that if you are interested in a property that is going under the hammer during late November or December, you may find less competition in the room. Bear in mind though the 28 day completion and given that many companies pretty much just tick over on skeleton staff for 2 weeks over the Christmas period, you may find that progress on any finance and legal leg work takes longer than usual.

2. Estate Agents go into hibernation - Estate agents traditionally find that the number of new listings falls sharply in the weeks leading up to Christmas and there are fewer committed buyers as well - with people delaying making any decisions about house moving until the New Year. This year, with an already very weak supply of property coming onto the market, a further fall in new listings means that Estate Agents are desperately short of stock to sell.

3. Tenants Go Home - If you are renting to students or young working professionals, you may find that they pack up and head back to Mum & Dad for the Christmas / New Year period. This means that your property may be left vacant for a while. Keep an eye of your rental units yourself if possible during this time and be aware that you may be obligated to notify your home insurance company if your property is vacant for anything more than 2 weeks.

4. Building work slows - Aside from the shorter days and delays due to bad weather you may find that building works slows considerably during the festive season. Like most businesses, your trades people and contractors are likely to take time off for a well earned rest. This may mean that your on-site labour count decreases and progress on your project slows up.

Do you have a property developer or investor in the family? Perhaps you are a property enthusiast yourself and are wondering what to put on your Wish List.. Clearly a new bathroom suite is going to cause Great Aunt Mildred a wrapping dilemma, so here are some property related Christmas gift ideas that will fit under the Christmas tree.

1. A signed copy of my book ?Teach Yourself: Making Money From Property' - Learn all the tricks of the property trade with my guide to property investing, renovating and developing. This is a practical and inspirational guide that could be an invaluable companion to any property entrepreneur. Visit the Store and you'll get a signed copy for just £9.99 plus £2.49 postage and packaging.

2. Property Development Software - There are lots of specialist software packages and tools available to help property developers and investors with tasks such as; calculating cashflow, rental yields and how much you should pay for property as well as project planning and rental management.

3. Themed Cuff Links - for those ?off site' days when your property developer can wear a dress shirt. There are some really interesting cuff links available if you search online. I found ?For Sale and Sold' signs ones, Hammer and Drill ones and even, my favourite, an auction gavel set! Check out www.hotcufflinks.co.uk

4. Property Education - get expert knowledge, guidance and mentoring from successful property investors who have been there, done that and bought the proverbial T-shirt. If you really want to help your loved one get a head start in the world of property investing, then pay for them to get some solid education on a weekend training course such as my Making Money From Property training programme. For details, check out the Learn with Martin area.

5. Power Tools - Needless to say for those property investors who are hands on developers, the latest power tools and gadgets are bound to turn them on. Cordless tools are a ?must' if your loved one is into property renovation. Visit http://www.blackanddecker.co.uk/powertools/newproducts/ for some ideas.

6. Vouchers - Not maybe the most exciting thing to unwrap, but nowadays there are so many different retailers offering gift vouchers or cards, buying vouchers is no longer a ?cop out'. Whereas vouchers used to mean books or music, you could now buy the property enthusiast in your life anything from house plants and accessories for dressing up a property for sale or rent to landlord insurance.

7. Magazine Subscription - buying an annual subscription to a property related publication means that your property person can get regular inspiration and information about their most loved subject - property. You could choose from a wide variety of monthly or quarterly publications on topics such as interior design, being a landlord, self build, renovation or even more specific subjects such as kitchens and bathrooms.

8. Customised Workwear - Show you care by giving your property developer friend some groovy workwear - perhaps safety gloves, glasses or boots or all in one suits for those on-site days. If your property developer has a company name, then it doesn't cost much to have t-shirts, sweatshirts, fleeces or caps customised with and embroidered logo or name. This is also a great way for your friend to advertise they're business.

9. Digital camera and / or photo album - Any property renovator worth their salts will keep a photographic record of the various projects they have taken on - not just for sentimental reasons but also these ?before' and ?after' photos can help with work estimates, insurance and advertising the property for sale or rent. They also make up a useful record of a property portfolio.

10. Monopoly Board Game - for the real armchair property tycoon. This firm family favourite has now been around for over 70 years and is still one of the UK's most popular board games . Approximately 750 million people have played the game, making it "the most played (commercial) board in the World. Already got the conventional version? Then what about ?My Monopoly'! For about £80 you can have your own customised version allowing you to build a property empire on spaces named by you, for you. Not sure what street names your loved one would want to choose, then you can give them a voucher. Go to www.mymonopoly.com