Don't overstretch yourself to buy an investment property just because everyone else is doing it. If you are releasing equity from your own home, make sure you can cope with the higher mortgage repayments before taking the plunge and remember that interest rates will inevitably go up, but rents won't necessarily follow.

Investigate the merits of interest-only mortgages, but remember that you don't make any dent in the capital owed under this type of mortgage, and the longer you stay on it, the higher your monthly repayments will be for the remainder of the term and the higher your total interest repayments will be. If you stay on interest-only indefinitely, you will have to sell the property to clear the loan.

Shop around for your mortgage. Although the simplest way to release equity from your home to finance a second property may be to take out a top-up loan from your current lender, there may be better rates on offer elsewhere. Buying a second property could be a good time to switch lenders and get a better deal.

Choose a location where there is a proven rental market and decide on the type of tenants you want i.e. families, professionals etc. But remember there is such a thing as being too fussy. If it's a choice between renting your property in a short-term let to an overseas student who doesn't want to sign a lease or leaving your property empty while you hold out for a more permanent arrangement, you could be waiting.

Take advantage of the tax breaks. Property investors can offset mortgage interest repayments against rental income and there is also tax relief for refurbishment and structural costs. Remember that there may be a capital gains tax (CGT) liability on a second home when you go to sell.

If you're buying overseas, make sure to use a trustworthy agency with good local knowledge. Always do independent research to make sure you are not paying over the odds for properties in areas with no rental market. Check if the country has a double taxation treaty with the Republic and if other local taxes will eat into your investment return.

Hire a lettings management agency if you don't want the hassle of fixing broken pipes or inspecting carpet burns. They will take a 5-10 per cent cut of the rent for taking midnight emergency calls about leaking washing machines and ensuring tenants comply with the terms of the lease, but the expense could be worth it for inexperienced landlords and busy investors with large property portfolios, plus fees can be offset against tax.

If you are renovating a fixer-upper in the hope of earning huge capital appreciation solely through your inspired DIY efforts, make sure to watch Channel 4's Property Ladder at least once. In each episode, amateur property developers go woefully over budget, ignore sound advice, then find when they go to sell that not everyone wants to buy a property with no upstairs bathroom.