He says there is also the maintenance of a property to consider. For example, a private management arrangement, which is a centralised management typically found in multicomplex developments, branded or hotel-style managed properties.

To reduce the chance of disappointment, avoid being rushed into purchasing a property that seems too good to be true and treat the transaction as a business proposal. It is worth spending time doing some research about local facilities and transport. Are there good links to the airport? If there is a beach close by, are the tides dangerous?

As the number of Hong Kong families sending their children to Australia, Canada, the United States and Britain for their tertiary education continues to increase, many choose to buy a property instead of renting it for their children.

Depressed property prices in the US and Britain, combined with access to low interest rates in Asia, often make buying more attractive than renting.

Estate agents advise parents that buying properties for their children to use to consider location and market potential if they decide to sell or lease the property at a later date. Although there is a tendency to buy new properties in large development projects, older properties close to transport, education and entertainment facilities can sometimes generate better rental returns and sell quicker.

Simister says people who purchase resort villas with the intention of leasing and using the property for private use, should consider the timing of their holiday arrangements. 'Very often the rental difference between high and low season can be double or triple,' Simister says. 'If people are flexible about when they use their properties, it can make a significant difference to the income revenues.'

According to Knight Frank's international property investment department, investors are looking at opportunities in the overseas market as Hong Kong is among the most expensive residential markets in the world. The real estate firm says resort properties are again in strong demand as they offer investors long-term rental income and capital growth potential.

Simister says while Thailand remains the number one location for foreign property investors, Cambodia is implementing investor-friendly polices to become a niche player in the market.

'Development along the Cambodia coastline is just emerging. With the recent expansion of Sihanoukville International Airport, the area is well positioned to handle a growing tourism industry and capture Cambodia's untapped potential,' Simister says.

He says priced at US$600,000, the 27 rainforest, beach and over-water villas on Song Saa Island is the first luxury private island development to be completed in Cambodia. Accessible by seaplane operated by the resort, each villa ranges from 135 square metres to 297 square metres and each has its own private pool. All villas come with 99-year leases and offer an 8 per cent guaranteed yield for five years. Foreign property investors pay tax on profits capped at 20 per cent.

'The villas offer the opportunity to acquire special real estate,' Simister says. 'They offer a well balanced design, ideal for a private holiday home and investment which has the ability to generate consistent income through a managed rental programme run by an experienced luxury resort specialist team.'

Also in Cambodia, Simister says plans are in motion to develop the pristine island of Koh Rong into an eco-resort, ideal for property investors prepared to take a long-term view. 'The island project, which will evolve over the next five years, is set to rival established destinations such as Phuket, Koh Samui and Bali,' he says.

'Since the project is balancing ecological protection with minimum carbon footprint, development will be targeting forward-looking investors within the region and globally who share a vision on ecological development,' Simister says.