"Look at this, Kathie," Bill continued, handing me the magazine. "This upholsterer from South Wales has bought a house on the island of St. Vincent…and two others in the Dominican Republic. He says these investments 'give him great peace of mind.'

"But he's never been to the Caribbean…never stepped foot on these islands. And he's buying retail in developed markets! Certain, that, nevertheless, the values of the properties he's investing in will go up…because, I guess, well, real estate values always go up, don't they?

"He has no idea what he's doing. It's nuts."

Sure enough, when I looked at the article Bill pointed to, Paul from Caerphilly has just invested $700,000 in a two-bedroom house on St. Vincent and The Grenadines. As he explains, "I am not even looking to visit the development but rather to sit back and watch my investment work for me."

Ah, dear reader, if only it were that easy. But you and I know better.

Bill walked out of my office shaking his head. "This is just what we've been warning readers of International Living not to do all these years."

Indeed. And I'll take this opportunity to remind you again of a few fundamentals:

First, never buy in a market where you've never been. Lief and I broke this rule once three years ago, and we're regretting it. Without question, if you're buying with any thought to personal use, you want to spend time in a place before committing to a real estate purchase. But even if you're buying only for investment, you should pound the local pavements (or beaches) with your own two feet. No amount of research can substitute.

Second, buy only what you see. The developer or real estate agent may promise a marina, a clubhouse, paved roads, and a helicopter landing pad…but if those things don't exist the day you sign your contract…they don't exist. And you're not buying them. Maybe, someday, they'll be built. But don't figure them into your purchase price.