Yesterday, after several months of debate and discussion the Permanent Resident Scheme was replaced with a High Net Worth individual scheme.  This new scheme has been created by the Finance Ministry to attract foreign investment but also entails individuals to contribute to the Economy by means of tax minimums and an increase of the minimum property price that one needs to spend to qualify to benefit from an advantageous tax rate. (more…)

Birgu is a very old locality on the south side of the Grand Harbour in Malta, with its origins reaching back to medieval times. The town occupies a promontory of land with Fort St Angelo at its head and the city of Cospicua at its base. In recent years, due to an agreement made by the Maltese Government with Sovereign Military Order of Malta, this Catholic Order of Knighthood has returned to the Island. This agreement, which has a duration of 99 years, grants the Knights of Malta t (more…)

Where else will you receive 5% guaranteed Rental Income?

RE/MAX is offering a selection of exclusive properties located in the prestigious Block T10 at The Tigne Point luxury development located in Sliema (close to the ferries).   The development is nearing completion and includes several amenities that no other project of this size can match.  Within the development one will find a fully comprehensive shopping mall, a number of catering establishments as well as fairly large Supermarket.  M&S Food, Juniors and Debenhams amongst other high street names all feature in what is an ideal shopping experience for foreigners and locals alike.  The apartments also have access to a communal pool.

The apartments on offer this Sunday start at € 505, 000 and go up depending on the floor level and layout that the apartment may be on.   All apartments are finished to the highest standards from no other firm than (more…)

Bank of Valletta have come up with an intriguing new package for prospective home loan customers which targets the first time buyers in Malta but also aims to strengthen the refurbishment and second property market. The bank is also offering some very attractive discounts on its own fees as follows: (more…)

Have you ever dreamt of moving abroad to an English speaking Island in the middle of the Mediterranean where crime is practically non-existent, the climate is pleasant throughout the year, the standard of living is high and the cost of living being reasonably low?  Well, you can stop dreaming because your wishes may even be closer than you think.   You might just want to start packing your bags after you read this. (more…)

Most people only think of residential property when considering becoming a landlord which indeed involves the least risk. Today’s Malta property rental market is buoyant due to the number of companies relocating to Malta from various industries such as internet gaming & finance just to mention a couple.  This high demand created by a strong government infrastructure that accommodates the needs of these companies creates a natural demand for rental property in Malta from the company executives and staff that relocate to Malta to operate the respective businesses.

The type of employees that seek out employment overseas are usually highly educated or trained according to their job descriptions and therefore are able to afford an average to above average rent ranging from € 400 per month, which would accommodate them in a one bedroom apartment to € 700 per month which would able the employee to afford a luxury two bedroom apartment next to the seafront.  Executives usually rent properties with prices ranging from € 1000 up to even € 3500. These budgets would afford them anything from a seafront apartment in Sliema to a condominium apartment in one of our luxury developments in Sliema (Tigne Point, Fort Cambridge) or St. Julian’s (Portomaso, Pender Gardens) that include pool facilities, parking facilities as well as security along with surroundng amenities.

Though the corporate executives are already training Maltese employees to take up these positions in order to save on costs, the rate of new companies setting foot down on our shores outweighs the rate that Maltese are being trained and therefore demand is continuous. There is also the facture that some highly skilled employees maybe headhunted or decide to move away from Malta and therefore a foreign replacement would be a necessity for that company.

The main areas of relocation are St. Julian’s, Sliema, Swieqi, Gzira, Msida as well as Ta’ L-Ibrag, High Ridge and Madliena.  Some employees choose to live further afield however these are too few to even mention when we are considering company employees or executives.

The return on invest ranges from 3% to 5% and sometimes you may be able to get 6% if you invest wisely. 

There is also a market in the South of Malta as well as in the North of Malta however we will touch those markets in a different article scheduled in the near future.  We will also touch the commercial property in Malta market in the next issue.

It is recommended to contact a reputable Malta real estate agent in  for further advice on how you can invest and achieve the best return on investment for your money.

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, buy to let Malta property has become an alternative to other forms of investment.

Unlike banks and investment instruments such as bonds, property 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 Malta property 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, but a properly managed property investment can be a very good way of increasing your wealth. There are pit falls though and if the management side is neglected you could have real problems. 

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 in Malta to do your lettings 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:

• Job mobility, job insecurity and short-term work contracts mean that many are now wary about becoming locked-in to owning a property.
• Co-habitation prior to marriage again means that couples are often reluctant to become looked-in to a property and a large mortgage, which may be difficult to unravel if there is a split.
• Higher divorce rates and an ageing population, with people in general living longer, has increased demand for housing and particularly single person accommodation.
• In some high-priced areas first time buyers in Malta have been priced-out and renting 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 a Malta property has become an alternative to other forms of savings and investment:

• Renting property in Malta has become more socially acceptable in Malta, though there is still a long way to go before we reach mainland European and US levels. 
• We have entered a more sympathetic legal climate for the landlord.
• Buy-to-Let mortgages have meant that property investment has become a real alternative to stocks & shares, with an added bit of satisfaction and excitement for those who take to it.
• Low interest rates offered by banks encourage people with some capital to look for better returns: property is generally a solid form of investment and rarely can you lose all your money, as you can with stocks and shares.
• The volatility of the stock markets have made some consider property and “landlording” as a safe alternative. 

Many start-out buying and letting 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 on Residential and Commercial investments as well as the customers that rent them.

Written by:

Andrew Agius Muscat – Business Management Analyst

Mr. Agius Muscat is a Business Management Analyst who has extensive back ground in the business world.  He is presently the Chief Executive Offices at the Malta Institute of Management and has held several top management positions. He recently held the position of Group Strategist and Planner for Attard Bros Group, a real estate developement and construction company in Malta.