Looking to buy property in Malta as an investment? Malta is the perfect location for this, a country with high demand in real estate. With so many properties sold and rented out each year, Malta is the ideal place for a property investment.
In recent years reports and statistics have revealed a considerable increase in the number of people investing in rental properties and therefore becoming new landlords. Indeed, for some, buying property for sale to let has become an alternative to other forms of investment.
Unlike banks and investment instruments such as bonds, the local property market gives a double return: income in the form of rent plus capital growth, and in some areas capital growth has been quite outstanding. The income (initial yield) should be enough to cover your mortgage payments, with a margin for safety built in.
At first glance, buying property in Malta is a foolproof way to wealth and security: once the place is successfully let, all the landlord has to do is sit back and watch the money roll in!
Well, it’s not quite as easy as that, a properly managed property investment can be a very good way of increasing your wealth. However, there are certain pitfalls regarding the management side of your property which if neglected, it could result in serious consequences with real problems. Here are some tips on investing in property for sale in Malta.
Letting is a relatively complex area which requires a fair amount of knowledge. The best option would therefore be to use a real estate agent to do your rental investment and thus minimise the risks related to market knowledge and maximum promotion. For the tenant, renting has become a convenient alternative to buying and for some it has become the only option:
For the landlord, whether it’s a side-line to an existing day job or a full-time occupation, buying to let real estate has become an alternative to other forms of savings and investment:
The volatility of the stock markets have made some consider property and “landlording” as a safe alternative.
Many start-out buying and letting real estate as a side-line and end up owning a portfolio of properties large enough to support them financially – indeed there have probably been more millionaires created in Europe from property-related businesses than almost any other occupation. Furthermore, there is an added incentive to enter this field as it is now being predicted that early retirement may not be an option for most people and that pensions may not provide all we desire in old age.
Look out for the next article that will give you an insight into Residential and Commercial investments as well as the customers that rent them. Also, read more about the types of rental investment properties available Malta.