One of the aspects of the current scenario of real estate in Malta is the availability of surplus properties that can be purchased as a rental investment. There are many good reasons for buying a property as a rental investment at the moment. With the recession that has brought on a reduction in the general purchase of properties, there has been a subsequent resultant lowering of prices that make purchases even more palatable. In fact, in this buyers’ market scenario, there has never been a better time for people to actually buying a second property as rental investment.
When you decide it is high time you put your money in a rental property you probably wonder where you can best invest. Being such a tiny island one might believe that there are not many options available but, in fact, good rental opportunities can be found all over the island. So which part of Malta is suitable for your investment and what do you look out for? Let’s start considering what makes sense within varied options:
– Choose to purchase real estate in Malta in an area which attracts expatriates on the job looking for a long term rental. Think of Sliema, St Julian’s, Bugibba or Qawra. Birzebbugia or Marsascala are also typical options on the other side of the island. It is good to know that purchasing a one or two bedroom apartment will provide you a better return on you rental investment. It is proven that your rental return can reach between 1% and 2 % more than the average of what you will get when purchasing a three bedroom apartment. The reason being is that there are many young single expatriates that are being employed with iGaming companies and other industries such as the Finance, Information Technology and Shipping who are only interested in modern one or two bedroom apartments. On another note, a three bedroom apartment is ideal when you are looking for a family-type clientele.
– Do something on short term holidays… clients have become more inclined to choose apartments or villas for their holiday instead of hotels for various reasons. For some, they are guaranteed complete privacy and independence. Others would need to find accommodation for a relatively short period of time, but have come to realize that staying in a hotel for, say, 6 weeks, may prove to be quite costly. Lastly, it is more cost effective to accommodate a small group (for example, a small family of 4 – 6 people) into one apartment / villa than it would be for a hotel to source one room to accommodate them all (at a decent price).
– Choose to buy Malta real estate in an area which attracts university students. Students, whether they come from our sister island Gozo, or whether they come from other parts of Europe and the world, will have a budget set aside to rent out property to live in for a long or short term period. Malta enjoys a steady influx of students at varied levels and so you will want to see which category of student you want to target. Finding a property which can be rented to more than one student will give you the option of having one or two or perhaps three students living temporarily under your rental roof. Alternatively you can opt to purchase a one-bedroom apartment to rent out to just one student on a long term basis. It all depends on how much time and energy you can dedicate to the rental arrangements which you must keep under control. For this specific category, choose parts of Malta where students congregate, namely the area around the University of Malta, the area around the Institute of Tourism Studies, or a central location such as Valletta or Floriana from where a student would be able to get a direct bus to any destination. A rental investment in these areas would ensure a long lasting demand.
– If you opt for the cultural segment of tourism then you will want to concentrate on finding a property which is situated in Valletta or Mdina or a central location such as Attard or Mosta. Alternatively choose a location in The Three Cities, all of which are picking up in popularity with tourists who are seeking to have a vacation immersed in history. This kind of tourist will look out for a more unique and classy place to stay.
– If you want to attract local renters who are seeking long-term accommodation, you can just about settle for any location as long as it is close to shops, to transport options, to a town/village core and with available parking space. If the location is pretty busy, try to offer the rental with a garage space incorporated. There are a number of Maltese families that may be renovating their home and require temporary accommodation for a minimum one year/
Whichever location you ultimately decide to concentrate on, remember that you must cater for all necessary commodities regardless of whether you want to offer a low/mid/ high range rental. So what’s your next step? Call a reputable Malta real estate agent and start touring those rental options… today!