Smart careful investors I find invest based on strict business models;
1) The property should yield after costs (dont forget the costs of the interest lost on deposit, accountancy, insurance, ongoing repairs etc) at least 7%
2) It should certainly be let for 12 months pa and not seasonal
3) Currently you should expect to get about 20%+ off the summer 2007 price
4) Newbuild often leads to an over supply, so reduced ren yield which is why so many lenders wont touch it
5) Capital growth is merely a by product and not to be factored into the business as it's unpredictable and if you sell you lose 40% in Tax anyway
Anything that does not meet this criteria is not an 'investment', it's merely a lifestyle purchase.
Having said all this, if you can locate a truly exceptional location with limited futute supply you might want to look at capital growth prospects, but dont be fooled by the many that say they bought for £100 and sold for £300 as they nearly always dont factor in the costs and Tax to include selling and buying costs and loss of interest on depoit. Thier true profit is almost always way less than they think
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Been investing abroad a few years. Always amazed people invest in places that produce just a few months rent per year 
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