As with any investments, whether stock market, currencies or ISA's, there are certain risks. Investing in property has proven to be one of the most lucrative investments over the past decade. Property prices have doubled in the United Kingdom since 1999. With so much equity in peoples homes in the UK, smart investors have been investing heavily in the Costa del Sol in Southern Spain. The annual appreciation of properties on the Costa del Sol is no longer 20-30% but don't stall or ponder for too long purely because returns are not so rewarding. Money is still being made on the Costa del Sol in abundance through property dealings.

One of the favourites is still the classic "off plan" purchase. "Ian Vestor" can buy a property from a developer even before the first brick has been laid or the first barrow of dirt excavated. He can pay a 30% deposit and 70% on completion some two years later. Buying "off plan" often gives buyers a far better deal than buying a completed property. Property Developers will offer the off plan properties at 20-30% below the current market value in order to attract investors and get their project off the ground.

However, some deals may seem too good to be true, but a little common sense will help you avoid the pitfalls:

• Do not buy off plan for the sake of buying off plan. Buy in at an early stage in order to get the best price. As units are being sold, the developer will increase the price.
• Try to invest in a property which you really like yourself. If you like the location and proposed standards and views, there is a good chance someone else will like it.
• Stay away from projects with payment plans allowing just 20% deposit and 80% on completion. This will inevitably attract too many investors.
• Do not reject serious offers. If an offer is made by a purchaser that will enable you to net a mere 70%; take it!! And move on to a new project. 70% is by far a lot more than you would have made by depositing your savings in a high interest savings account.
• Place your property on the market as soon as you have entered into private contract thus increasing your chances of selling it.
• Make sure you can afford the repayments on a mortgage if you fail to sell before completion.

If it's that easy, why doesn't everybody do it?

These are common reactions. However, many property investors have had their fingers burnt due to greed, by not using reputable real estate agencies but even more important; lack of common sense! Some property investors think this is so good that they purchase 4 properties in a new project. Before completion they need to sell all four or be prepared to pay the balance, either cash or by taking over a pre-arranged mortgage.

• Some property investors buy off plan properties simply for the sake of buying off plan properties.
• There are other investors that buy off plan properties from agencies telling them that they are investing in a great project where in fact the project is sold solely to investors looking to sell before completion. If a project of 100 units is solely sold to investors, your chance of selling your property will be one in a hundred. Not the best of odds!