Mistakes to Avoid When Buying Property Abroad – My Advice After 15 Years of Experience in the Construction Industry

Today we’re going to talk about the mistakes you should avoid when buying property abroad. An expert with 15 years of experience explains what to check before buying property abroad.

Given the current situation in Western countries, and especially in Spain, many investors are turning their attention abroad in search of good opportunities to invest in real estate. However, we must not forget that what works in one place isn’t necessarily the same in another.

Most mistakes aren’t made on the construction site. They’re made before that. Partly at the time of purchase or when choosing the location. But also when deciding who to trust and what to take for granted. Of course, these aspects are especially sensitive when you want to buy a property abroad: different construction methods, different building codes, different legal circumstances, and a different work ethic.

In collaboration with various partners, we offer a range of investment options in nearly all the most popular destinations, including, for example, Bali, Bulgaria, Mexico, Northern Cyprus, Montenegro, and Dubai.

Especially if you don’t want to use our network of partners but instead invest on your own, it’s essential to have some basic knowledge about real estate to avoid unpleasant surprises. What’s more, even if you go through our partners, knowledge never hurts and is the only reliable protection against potential mistakes that could end up costing you dearly.

Today’s article is a guest post written by Benjamin Fercher. It draws on 15 years of construction experience and will highlight three key points—or realities—that are essential for avoiding major mistakes. It turns out that the most costly construction mistakes are often already present at the time of signing; they do not arise during construction, as some might think.

The three realities you need to know to avoid problems

Reality 1: The actual construction is always more complex than the blueprint.

What seems to work on paper can fall apart during execution. Many projects are designed with the rendering in mind, not how they will actually be built, taking into account materials, climate, local labor, and on-site issues.

Reality 2: Legal certainty isn’t assumed; it’s verified.

Just because something appears in a registry doesn’t automatically mean there are no risks. And just because a developer sells a home off-plan doesn’t mean the project will be completed. Before buying, you must verify ownership, encumbrances, permits, warranties, and what would happen if the developer defaults or goes bankrupt.

Reality 3: Climate and physics don’t negotiate.

You can ignore humidity, heat, rain, wind, the terrain, or the materials… but they won’t ignore you. Anyone who builds without considering the climate may not have problems the first year, but sooner or later they will.

These three realities determine whether your home will still be standing decades from now or whether it will end up as a never-ending construction site, a legal trap, or a permanent renovation project. We’ll go over everything step by step.

Reality 1: What Really Happens on the Construction Site

Why plans die on the construction site.

The architect sits down and designs a multi-layered wall: drywall, vapor barrier, mineral wool, OSB board, polystyrene insulation, base plaster, reinforcement, and finish plaster. On paper, everything is perfect. Then comes the construction.

The local mason knows his materials and techniques: solid walls and plaster. What he may not know—or master—are complex seven-layer construction systems, with vapor barriers, specific insulation, technical joints, and details that must be executed down to the millimeter.

So he starts improvising, thinking it will work just as well.

The vapor barrier is slapped on however it can be. The joint between the window and the wall is filled with polyurethane foam. The plaster is applied thinner than planned because the material is expensive. And every small adjustment seems reasonable at the time.

The problem is that you’ve imported foreign complexity into a country where traditional construction relies on simpler, more robust, and easier-to-repair solutions.

And this isn’t a criticism of the local builder. Often it’s pure professional survival instinct. If he doesn’t understand the system, he won’t execute it as the technical manual says; he’ll execute it as he believes makes sense based on his experience.

And for a while it may seem to work. After all, construction foam can withstand anything… at least during the two-year warranty.

But complex systems only work if every layer is executed correctly. On paper, that seems easy. On the actual job site, with heat, time pressure, costs, mistakes, local suppliers, and laborers who aren’t familiar with the system, it’s often an illusion.

The Reality of Local Workers

When you build abroad, your property is constructed by local workers and technicians. They know their country’s construction methods, the materials that have been working there for decades, and the solutions that hold up in that climate.

What they may not be familiar with are high-tech Central European systems: multi-layer solutions, millimeter-precise technical details, manufacturer-specific products, and construction systems designed for a different climate, different regulations, and a different way of working.

If you arrive with materials in a container, with connection details that only the manufacturer understands, you’re not just building your house—you’re also building a major maintenance problem that will keep you busy for many years.

Take, for example, a prefabricated or modular construction. The modules are built in Central Europe, then transported and assembled on-site. Everything seems clean, fast, and efficient. But not everything is resolved at the factory.

The connections between modules, the interfaces with the foundation, the joints, the finishes, and the penetrations for water and electricity are executed on-site. And often these are done by local workers who aren’t familiar with the system, haven’t been trained by the manufacturer, and don’t understand the consequences of a poor connection.

For the first few years, everything seems to work, but five years later, a connection starts leaking, the insulation gets soaked, and the entire structure stops functioning. The manufacturer sends a renovation proposal worth thousands of euros, because the warranty has expired, or it turns out that model no longer exists.

Having a house that only the manufacturer can repair is not having a refuge, but declaring yourself dependent for life on a single supplier.

Why the use of “traditional local architecture” is not mere romanticism

If in Cyprus or the Mediterranean basin locals build thick monolithic walls of stone, brick, concrete, or clay, there are reasons for it. If you see in the tropics that houses are built on stilts, there are reasons for that too.

Traditional local construction isn’t backward; it’s a matter of risk minimization.

The thick stone wall in Cyprus keeps the heat out during the day and stores coolness at night. In the best-case scenario, it requires no air conditioning, no insulation, and no technology. It works because it is physically sound.

The house on stilts in the tropics isolates the building from the damp ground. It allows air to circulate, keeps termites away, and protects against flooding.

Anyone who ignores this logic and places a prefabricated house from Central Europe in Cyprus, or plans to build one that way, is building against reality. The house will overheat, leak, and be beyond repair.

Just because the house you’re going to build has a building permit doesn’t necessarily mean it’s functional.

The Trap of Joints

Construction defects rarely occur on surfaces. They arise at the joints: where the roof meets the wall, where the wall meets the baseboard, where the window meets the wall.

Those are the weak points; that’s where most errors and damage occur.

Why? Because two trades meet at the joints: The roofer waterproofs the roof, the plumber makes the connection, but no one ensures that both work together. With simple details, these problems don’t even arise, because each trade knows exactly what it has to do and the solution works with a simple and viable logic of joints.

On paper, everything is clear. In reality, people improvise.

Example of a window connection: The mason builds the soffit. The window manufacturer installs the window. The plasterer applies the plaster. But who handles the sealing? Who applies the second layer of waterproofing under the sill? Who installs the sill?

If this isn’t clarified beforehand, it gets sorted out on-site. With construction foam or silicone. Or with a “no big deal.”

Three years later: water seeps behind the plaster. We find mold on the soffit. The insulation is soaked. Functionality is gone.

Simple details last longer than complex ones. Large eaves protect facades. Clean baseboards insulate against moisture. Those who skimp on joints pay more later in renovations.

Reality 2: Legal certainty is an assumption

The property registry doesn’t work the same everywhere

In some European countries, registration in the property registry offers a very high degree of legal certainty: whoever is listed as the owner is usually, in fact, the owner. The system is well-organized, the data is usually up-to-date, and the risks of double sales or serious ownership disputes are very low.

But it’s a mistake to assume this is how it works everywhere.

In many jurisdictions, the registry may be incomplete, outdated, or only partially digitized. Sometimes multiple databases coexist, or different authorities have maintained parallel records for years. It can also happen that a person remains listed as the owner of a property even though they sold it decades ago, or that there are discrepancies between the registry, the cadastre, and the physical reality of the property.

Therefore, before buying property abroad, it is not enough to simply see a name in a database. You must verify the actual ownership, the chain of title, encumbrances, the property boundaries, the cadastral status, compliance with zoning laws, and any third-party rights that may affect the property.

Example: The Philippines

The Philippines has a property registry. But that doesn’t mean everything is as straightforward as it may seem from the outside.

There may be unresolved indigenous land claims, hereditary community issues that have never been fully settled, poorly documented family transfers, overlapping titles, or even forged documents that look convincing enough to fool a buyer, an intermediary, or even a notary.

Imagine you buy a piece of land.

The seller shows you the supposed “original certificate of title.” You have it reviewed. The lawyer tells you, “At first glance, it seems to be in order.” You pay. You build. You start using the property.

And three years later, someone shows up at your door and says:

“This land is mine.”

Maybe they have an inheritance claim. Maybe it belongs to a local community. Maybe there’s a prior title. Maybe the document you saw wasn’t as solid as it seemed.

And that’s the point: in some countries, registration doesn’t necessarily mean you’re the undisputed owner. It means someone has managed to register a right in your favor. And there can be a huge difference between a registration and truly secure ownership.

Developer insolvency: the worst-case scenario

Buying off-plan usually works like this: you see a rendering, review a building specifications sheet and a project description, and the developer promises you the home will be finished in 18 months.

You pay a down payment, say 30%. Then, you make further payments as construction progresses. On paper, it seems reasonable: you pay in phases and the developer builds in phases.

But the important question is: what happens if the developer goes bankrupt when construction is only 12 months in?

That’s when you find out if you were actually buying a home… or if, in practice, you were financing the developer without sufficient guarantees.

In many European countries, there are completion guarantees, escrow accounts, and bank guarantees. When you buy a property abroad, these usually don’t exist.

The UAE, Turkey, parts of Southeast Asia… There, buying off-plan is the norm. But protection is not. You pay 30%, and the developer uses your money to finance the next project. After 12 months, construction grinds to a halt, the developer declares bankruptcy, and you’re left without a home or your money.

Your legal situation: you are a creditor in an insolvency proceeding. Your chances of recovering the money are slim. Anyone who pays more than a 30% down payment without the money being protected in an escrow account is speculating. They are not buying.

What “property” really means

Freehold, leasehold, usufruct: these aren’t technical terms. They are different ways of owning—or not owning—a property.

Freehold means you own the land and the building. There is no expiration date. You can sell it, pass it on through inheritance, mortgage it, or keep it indefinitely.

Leasehold means you have the right to use the property for a set period: 30, 60, 90, or 99 years, for example. When the term expires, the right ends and the property reverts to the landowner. Sometimes it can be renewed, but you shouldn’t take that for granted.

Usufruct means you can use and enjoy the property, but you are not the full owner. Depending on the country and the contract, you may have extensive rights of use, but you will not necessarily be able to sell the property as if it were yours, freely mortgage it, or pass it on to your heirs under the same conditions.

In many countries, foreigners cannot acquire full ownership of land. They can buy apartments, usage rights, long-term lease rights, or shares in local structures. In other cases, a local company is set up to purchase the land, but that company must be partly—sometimes majority-owned—by residents or nationals of the country.

That’s why, before buying, the question isn’t just: “How much does it cost?”

The real question is: What exactly am I buying: property, temporary use, an economic right, or a structure that depends on a local third party?

Example: Thailand

In Thailand, foreigners can buy apartments (full ownership), but not land. Anyone wanting a property abroad or a house needs a leasehold structure: 30 years, renewable, not automatically inheritable.

If you don’t know what type of property you’re buying, you’re buying blind.

Illegal constructions and local arbitrariness: a ticking time bomb

You go and buy a second-hand property in Greece, for example. It’s a beautiful 200-year-old stone house with an extension from the 1990s.

The seller claims everything is in order, and you go ahead and buy it.

Two years later, you receive a letter from the city council. The addition is unauthorized; they demand its demolition, or a fine, or its legalization upon payment of a fee.

Illegal constructions are not minor offenses. They are legal time bombs.

A specific example from my own experience:

My father wanted to build a vacation home in Corfu, on a secluded plot of land. The preliminary archaeological survey was conducted properly, and no ancient remains were found. Formally, the land appeared to be buildable. However, during the subsequent permitting process, it became clear that additional local authorizations were required. Despite several attempts, a valid building permit could not be obtained.

The result: to this day, more than 20 years later, the land remains an olive grove. It is not legally prohibited to build there, but in practice, the project is blocked.

The lesson here is not that one should avoid buying in Corfu; the point is that we must be very mindful of these kinds of systems.

In many regions, it is not only the laws but also local interpretation, informal powers, and power structures that determine whether a project can be carried out or not.

In many countries in Southern Europe (Greece, Portugal, Spain, the Balkans), illegal construction or local arbitrariness is widespread. Not out of malice, but out of habit. The authorities have been negligent for decades.

If you buy a second-hand property without checking that all extensions and renovations are authorized, you are taking a huge risk. Of course, that risk is borne not by the seller, but by the new owner.

Reality 3: Climate and building physics always end up prevailing

Why air conditioning isn’t the solution

Homes without thermal mass in a hot climate turn into ovens during the day. The walls don’t buffer the heat, the interior overheats, and the only solution ends up being to run the air conditioning 24 hours a day, 7 days a week. Your electricity bill skyrockets, your solar panel system can’t keep up, and your “self-sufficient haven” is an illusion.

The problem isn’t the air conditioning. The problem is the house. A well-designed house in a hot climate wouldn’t need continuous cooling. It needs thermal mass on the inside (thick walls of clay, brick, stone), shading on the outside (large roof overhangs, light-colored facades, proper window orientation), and nighttime cooling (cross-ventilation, air ducts).

During the day, the thick walls keep the heat out; at night, you open the windows. Cool air comes in, the walls cool down, and the next morning, you close the windows. The walls slowly release the coolness. This isn’t esoteric. It’s physics.

An air conditioner that has to run 24 hours a day, 7 days a week, isn’t comfort. It is an admission that the house was poorly designed.

Materials unsuitable for the climate

Expanded polystyrene ETI (external thermal insulation system) is, unfortunately, the norm in Central Europe. In hot and humid climates, it turns out to be a disaster.

Polystyrene is impermeable to vapor diffusion. Moisture entering the wall from the inside cannot escape to the outside. It condenses behind the plaster and mold forms. After a few years, the first black spots appear, the plaster peels off, and the polystyrene is soaked. In that case, unfortunately, it cannot be repaired. It can only be replaced. It costs twice as much as the original facade did.

Another example: a wooden house on damp ground in the tropics. Wood is a wonderful building material, but only if it stays dry. On damp ground, it doesn’t stay dry; termites arrive, fungi arrive, and the wood rots.

The solution would be to use pilings, concrete footings, clearance from the ground, air circulation, and local wood species that are more resistant.

Or you could also opt for a flat roof with a slight slope in rainy regions. Flat roofs are in style and are designed with taste, but the water has to flow. A flat roof without enough slope causes water to pool. Standing water finds its way, and leaks in the roof are guaranteed.

Anyone who builds without considering the climate loses out. Not immediately, but in the long run, make no mistake.

The monolithic solution instead of opting for multiple layers

The more layers a structure has, the more complex the system becomes. And the more complex the system, the more points of failure arise. A seven-layer wall or roof only works if every layer performs its function exactly.

On the blueprint, everything looks perfect: every line fits, every membrane is in place, every joint is resolved. On the actual job site, things change. One layer is forgotten. Another is installed upside down. A third is punctured during transport. A joint is poorly sealed. One material is substituted with an “equivalent” one because the original wasn’t available.

And the system may seem to work for a while, but three, five, or ten years later the consequences appear: condensation, leaks, loss of insulation, mold, warping, or structural damage.

That is why, in certain climates and countries, a monolithic, simple, and robust solution can be much smarter than a sophisticated construction that only works if everything is executed perfectly.

Monolithic construction as an example of simple construction: solid walls made of a single material. Mud, brick, solid wood, concrete, stone. No layers, no sheets, no adhesives. Instead, a lot of mass.

Example: 40 cm clay bricks in southern Italy. On the exterior, lime plaster; on the interior, clay plaster. Done. The house cools down at night and keeps the heat out during the day. It doesn’t need air conditioning, it doesn’t need insulation, it doesn’t need maintenance.

Simple systems last longer. Not because they’re primitive, but because they’re less likely to break.

Maintenance: the forgotten factor

Let’s suppose we’ve chosen to build a house with a home automation system, proprietary ventilation systems, and special windows—it looks perfect on paper, and that’s how they sell it to us.

Now, let’s take a look at that same house ten years later: the home automation system no longer has technical support, the ventilation system needs a new filter that is no longer manufactured, the windows have a defective special hinge that only the manufacturer can supply, but, unfortunately, the company no longer exists.

A house that only the manufacturer can maintain is not a refuge. It is a constant source of dependency.

As a solution, it’s best to opt for standard components, simple systems, and local availability. Windows and doors that any carpenter or locksmith can repair. Electrical systems that any electrician can understand.

The goal: the house should function without you.

The questions you should ask yourself before making any decision about the purchase

There are three fundamental questions. Before signing, before transferring the money, before committing emotionally, you must ask yourself these three questions:

Question 1: Who is going to build the house and who will repair it later?

It’s not built by your architect, nor by the developer. It’s built by the local builder, the local electrician, the local plumber.

Do they know how to handle the system? Do they understand the details? Do I understand the details? And in five years, if something breaks: who will fix it?

Question 2: What happens if the developer disappears?

Is the money secured? Is there an escrow account? A completion guarantee? Or do you pay directly into the developer’s account and wait? Hope is not a strategy.

Question 3: Is the construction method suited to the climate, or will I have to compensate for problems with technology?

Do I need an air conditioner that runs 24 hours a day, 7 days a week? Will the facade last 30 years without needing renovation? Does the house function even without electricity?

Your checklist to fill out before buying

Have you checked the property registry? Who did it? Just the real estate agent? That’s not enough. An independent lawyer. An up-to-date extract. Have the encumbrances been checked? Better to do it on-site.

Have you researched the developer? References? History of insolvency? Completed projects? Have you spoken with previous buyers?

Have you consulted local professionals? Can they maintain the system? Are materials available?

Have you checked if this type of construction makes sense in this climate? What do the locals build? Why do they build that way?

Do you have the legal certainty you need? Freehold? Leasehold? Right of use? Heritable? Saleable?

Have you made sure no illegal construction has taken place? Are all additions and renovations authorized? Is proof available?

Are the plot boundaries defined? Are all boundary points and lines clearly visible? Has a surveyor been there and checked everything?

And yet, most people still make major mistakes when buying homes

The theory is clear, the checklist easy to create (I’m not telling you anything that hasn’t been known for a long time), and yet most people make bad purchases. Why?

Because they buy on impulse, in a hurry, and based on false assumptions.

The rendered image looks great, the real estate agent says, “Only two units left.” The sun is shining, the sea is sparkling, you picture yourself sitting on the terrace and think, “Finally out of Europe.”

You sign the contract, and a few years later, construction grinds to a halt. The developer isn’t answering anymore; the money has vanished.

Or: the house is finished, but the air conditioning runs nonstop. The facade has cracks. The roof leaks. One corner is always damp.

Or: suddenly, the property title is no longer clear. An heir appears. The city council demands demolition.

The problem isn’t that people are foolish; the problem is that they’re impatient, they don’t check things thoroughly enough, and they often rely on their gut instinct. The most costly mistakes aren’t made out of foolishness; they’re made out of impatience.

In Conclusion

Of course, this article doesn’t replace an individual review, but it does show what needs to be checked before wasting capital, time, and energy.

This article was prepared with the support and technical input of builder Benjamin Fercher, and clearly presents the three decisive factors when buying or building property abroad. The goal is simple: to help you understand what really matters in practice, so you can make a good purchase… or so you know when it’s better not to buy.

Benjamin has 15 years of professional experience as a builder, both in Austria and in the international construction sector, ranging from classic solid-construction homes to self-sufficient designs using wood, clay, and stone.

Whenever you decide to invest in real estate abroad (or in anything else in any country in the world), make sure you fully understand your investment or that you’re being advised by people who don’t have interests that conflict with yours.