Ah, Malta! Long summer, plenty of beaches, history, views, partying, food… sounds like an ideal destination for a holiday home! So how do you go about finding the best area for your needs? Here are some tips just about how to purchase your holiday property in Malta.
There are some important factors to consider beyond your budget, mainly your long-term goals for the property in Malta. Do you see yourself eventually living there, while renting it out now, or will you only want to enjoy it for holiday and rent it out when you’re not there? What is important for you is important as this will shape your choice and the properties to consider.
Look for the renting potential
If you might want to eventually live or spend longer periods of time in it, you might go for an area that you like and rent your property out as comes. However, if you want to maximise your its rentability, it might be a good idea to seek areas that have a steady if not high renting potential. Some areas might be more functional; Msida, San Ġwann and Pieta might ideal for long lets as the areas are central and easily rented out, but they don’t have the views, the quiet and the desirability that other areas have.
Areas with high and steady rentability are places like Valletta, Sliema and St Julian’s—tourist hotspots that offer a lot by way of sightseeing, nightlife, food, history and sea. Places like Mellieħa, the Three Cities and Gozo peak in the summer season, which is more or less between April and November.
Don’t forget the local tourists
So, going for areas that offer a lot to tourists and locals alike means that your property would be more easily rented out. Don’t forget that locals rent out too, especially in Gozo. Malta’s sister island is seen by many Maltese as a get-away for weekends and feasts, to relax far from the hustle and bustle of the big island.
Long let vs short let
Rentability comes in two parts, long let and short let. Tourists are obviously going to rent short let while locals, students and expats will rent long term. Most areas have their own trend: for example, Sliema and St Julian’s have a good balance of both, but Valletta would be more suited for short lets to tourists, as long lets are more expensive and less rentable. What rentability to choose is important because short lets require more work from your end, while long lets less: you’ll have to keep the property tidy, maintain and service it, and market it more on short let.
Consider the resale value
Don’t forget to think of the resale value, too. Is the area up-and-coming or is it peaking? Would you be threatened by further development, the potential of new establishment that might detract from your goals, or perhaps there is a better area than the one you had in mind? Consider all these things, and make sure to visit the areas too and talk about them with locals.
In a nutshell
To strike gold you have to think of a good balance: find an area that you like and would want to spend time here, but one that also has a lot to offer to rentability. Rentability doesn’t simply mean ‘to make money’, but consider that any property comes with its own costs in the long run.
To summarise, visit Malta, explore the island and talk with the locals! There are plenty of areas with good rental potential, but you have to make sure you find one that suits your long-term goals. Think across the board: Maltese people will rent as well as tourists, consider resale value, the up-and-coming potential of an area and what sort of rentability you seek.
Do you have more questions? Drop us a line on [email protected] or call us on 2015 6800.