The best advice when investing in property in Malta
Louis Schembri
Franchise Owner – St. Julian’s Office
How much is a € 500,000 budget in the local real estate rental market and how to invest it?
When I have such a budget I used to invest in the main localities of Sliema and St. Julian’s, where there is always a great demand for rents as well as for the purchase of property. Another area worth considering – and which has risen in popularity in the recent past – is the shores of Valletta and Floriana. Here, landlords can make a huge return on their investment, especially when it comes to the short rental business. In addition to the excellent return on investment in these areas, investors will always gain a substantial appreciation of capital.
Would you have a € 2m budget for a buy-to-lease purchase, invest it in a historic property located in a historic location, or focus on contemporary property in a modern city or lifestyle development?
With a budget like this I spread my investment. I would like to buy an apartment by the sea with a spacious outdoor area, which is always demanded for rent or purchase. I also look at investing in a one-timeownhouse that still retains its authentic features – foreign clients are especially eager to rent such properties. In addition, due to the lack of supply, properties of such period continue to appreciate in value.
When looking for a residential home, what kind of outdoor space, mod-cons and value added buy € 2m?
With a budget of € 2m, one would expect to have a comfortable outdoor area with a swimming pool, interconnected garage, PV panels, a fully equipped fitted kitchen and generally air conditioning in all rooms.
Frederick Stivala
Franchise Owner – St. Julian’s Office
How much is a € 500,000 budget in the local real estate rental market and how to invest it?
In this case, I consider two options. The first would be to buy two small properties in the region of € 250,000 – such properties usually give you the best percentage of return on investment. The second option would be to purchase one property in a designated special area complex. These properties usually give you a lower percentage return on capital – however as foreign nationals have several advantages when buying in these SDA complexes, the demand is always good, if one needs to liquidate the their investment.
Would you have a € 2m budget for a buy-to-lease purchase, invest it in a historic property located in a historic location, or focus on contemporary property in a modern city or lifestyle development?
I will definitely go for a lifestyle development. Foreigners love lifestyle developments as they are generally safe, clean and mostly enjoy amenities such as swimming pools, gym, food and shopping.
When looking for a residential home, what kind of outdoor space, mod-cons and value added buy € 2m?
Property of this value needs to have a swimming pool, garden, garage, privacy, entertainment areas, storage space, as well as energy efficient heating and cooling systems.
Timothy Scerri
Head of Residential Sales – Sliema Office
How much is a € 500,000 budget in the local real estate rental market and how to invest it?
A budget of € 500,000 for a buy-to-let is a pretty good one – which means one can choose from several options. A large apartment or penthouse in St. Julian’s, Swieqi / Ibraġġ, Madliena and Baħar iċ-Ċagħaq are a few areas to consider as the rental market in these localities is highly sought after. With a budget, one can also find a three bedroom apartment in Sliema which is considered as the best option as it is the closest to the district of the head office and other amenities. Alternatively, one can choose a two-bedroom residence in a Special Designated Area (SDA). Another proposal would be to buy two properties rather than one as with the said budget one would be able to buy a two bedroom apartment and a one bedroom apartment in the aforementioned areas. This option generates higher rental income.
Would you have a € 2m budget for a buy-to-lease purchase, invest it in a historic property located in a historic location, or focus on contemporary property in a modern city or lifestyle development?
I believe both options are good – choice would be a matter of opinion and choice. Time property in a historic location is usually rented to foreigners who want to integrate with the local society, who have all the amenities within walking distance and of course love the village life, while contemporary property with that the budget is leased to families who have younger children who are closer to. independent English-speaking schools.
When looking for a residential home, what kind of outdoor space, mod-cons and value added buy € 2m?
Nowadays people who spend that kind of money prefer to buy a property that has all the modern commodities rather than having grand houses with little or no garden. People would rather have three bedrooms all with bathroom facilities than have four bedrooms with two shared bathrooms. Trends have changed and people are looking for comfort rather than space although with a budget of € 2m you usually get both.
Robert Spiteri Paris
Managing Director
How much is a € 500,000 budget in the local real estate rental market and how to invest it?
The real estate market offers some excellent buys to hire investment opportunities for prospective buyers with a budget of € 500,000. I am investing these funds in places and markets that have done well in recent years and are likely to remain strong in the near future, these will be coastal cities, especially those located in the area of -port. Such villages include the historic capital city of Valletta, the three unique and beautiful cities and other localities such as Ta ‘Xbiex and the more modern cities / business district of Sliema / St. Julian’s and the surrounding area. -about. With this budget one can acquire an apartment or maisonette in a sought after street and in an up-market location, close to quality amenities, waterfront and shopping mall, and so on. Of course tenants are attracted to properties closer to the shore. One word of advice would be to try to choose a property with some outdoor space as this can serve as an important selling point due to the Maltese climate, many prospective tenants are looking for a sunny place to sit and consider parking facilities. . assi. Another option would be to go for two or three smaller properties that can result in better yield and rental income in the short term but do not benefit from the same capital growth that one solid investment gives you in the long run as explained in my next answer. . . It all depends on his plan.
Would you have a € 2m budget for a buy-to-let purchase, invest it in a temporary property located in a historic location, or focus on contemporary property in a modern city or lifestyle development?
For prospective clients with € 2m to invest in buying property to lease investments, I advise looking at both options. Historic localities and in particular time buildings (houses of character / townhouses) are highly sought after by visitors to our shores as many appreciate living in a property and environment typical of the island and are looking for the the ‘full Maltese experience’ that such. Charming properties and character offer. Lifestyle developments are also very attractive for expatriates moving to the island, as such residential developments usually offer a wide range of amenities, practicality and convenience. A € 2m budget allows an investor to buy both a modern and sea-view apartment in a lifestyle development as well as a typical house of character in a more historic village center. With such a budget one has to decide whether to invest in a lot / a larger portfolio of properties at the bottom of the market or to look longer by investing in a couple of higher value but better quality / unique properties. As a rule, higher yielding properties are usually at the bottom of the market. As rents increase, the number of potential tenants decreases, and yields begin to decline however one should not ignore capital growth. For capital growth the values at the bottom of the market generally do not rise so rapidly for higher priced properties in desirable areas. When choosing a property in a lifestyle development with such a budget, it is important to choose a seafront and some outdoor space, ideally a large terrace and when buying a time property, it is important to choose a house with a garden and ideally. swimming pool in central and more sought after localities such as the three villages (Ħal Lija, Ħal Balzan and Ħ’Attard). Customers who choose a period home usually do so to also enjoy their private outdoor space. Such outdoor space is usually very important for these customers.
When looking for a residential home, what kind of outdoor space, mod-cons and value added buy € 2m?
The purchasing power of € 2m for a residential home varies dramatically across the island. Like any market around the world there is always a premium on the spot, especially attractive places located along the east coast of the island. Therefore, when it comes to villas for example, it is not surprising that a budget of € 2m gives you more space outside in locations that are more inland or rural compared to major and sought after coastal markets such as Madliena, Ibraġġ, San Pawl Tat -Tarġa and Mellieħa. With a budget of € 2m one can certainly buy an excellent residence with a wide outdoor space, including a large garden and a swimming pool in an attractive neighborhood.
At this price level one can expect to see residences ready to a high standard including all standard way-cons and more.
Independent journalism costs money. Times of Malta Support for price of coffee.
Support us