Overseas investment property can yield huge gains but you need to be mindful of risk.

Here we will look at some ways to make big gains in overseas investment property and keep risk to a minimum to make big long term gains.

1. Do your homework and use common sense

Many people think they can just follow a salesman's advice and make money blindly - This of course is just ignorance and laziness.

If you want to make money in overseas property investment you need to do your homework and use common sense.

This is not say don't take advice but weigh up all the facts for yourself.

Research all the facts on the investment and the country before you invest, it's certainly time well spent in overseas property investment.

2. Be Wary of new hot spots

A normal sales trick is to give you a new "hot spot" that will take off and will make huge gains.

The problem with new property "hot spots" is most don't take off and you can replace the word "will" with "may"

Sure, you could make more money by being a pioneer and some did get rich, but keep in mind most got arrows instead!

Your best bet is to stick with destinations that have taken off (most overseas investment property trends last for years) and you can make big profits as well as have low risk.

3. Buy established trends

A trend in motion sucks in money, if it's a popular overseas property investment destinations it tends to get more popular.

A good example is Costa Rica, which offers an established trend and fair prices.

For example, a property bought near the popular resort of Jaco for $30,000 just 15 years ago, is worth as much as $800,000 today.

Will these gains continue?

Looks like it with investment pouring in and beach front property still up to 70% less than in the southern US states.

4. Location

You have be careful of location in any country and this applies to our example above, buy in Jaco and overseas property is expensive and growth rates are less.

So look nearby for expanding resorts and infrastructure when their completed prices rise.

Look for fair value (rather than the cheapest) nears these areas and you can turn 30 - 100% more per annum with low risk.

5. Look at the law

Many countries don't give you the same rights as residents and in many countries property laws can spring surprises.

For example, in Eastern Europe people can re appear after being displaced during the war and suddenly claim your property!

Be careful and get a good lawyer especially if the contracts are not in your language.

Don't take risks here - Its money well spent.

6. Use rental income for bigger gains

You want capital growth and to be able to sell your overseas investment property at a profit but don't forget the bonus of rental income.

In many areas this can really increase your overall profit and that is why you should stick to popular overseas investment property destinations.

If there popular, the chance to make some great rental income is there to.

So, there you have some simple tips regarding overseas property investment.

Use common sense and make your own mind up and if possible visit the area you are investing in - If you do you could make some great gains.