The islands of Malta and Gozo are ideal locations where one can safely purchase property of any size, category, and potential with the aim of creating a trustworthy rental investment. The fact that the islands are very small and that space is quite limited does not seem to create any difficulty in providing a steady supply of investment opportunities.
Whether a Maltese national or a foreigner, the rental investment is a possibility here. There are various options to consider and we are here giving some guidelines to help readers decide on the best rental investment they can make for long term reliability in the sphere of letting.
- Many people start out by purchasing a property for their own use. It pays to look at particular considerations, which would make the property purchase an investment with good returns in the eventuality that a decision is taken to let it out whether for short or long term rentals.
- Long-term rentals yield you a steady monthly income from one source whereas a short-term rental yields you higher rental income from various sources that are not guaranteed. If you have the energy to advertise your property in foreign and local websites and take care of weekly maid services, communicating with potential renters and accepting bookings, then a short-term rental investment may suit your needs.
- Choose your location well, taking note of the areas that are the most popular for property rentals in Malta with tourists and individuals working in Malta. Every individual is of a different category – ranging from students, bachelors and small families, to upmarket well-to-do individuals seeking the best of quality and luxury. Tourists are mainly looking to wind down and relax on the islands, or are after a busy few days of culture and history. The point here is that each category generally has a different budget, with specific needs and requirements.
- Invest in a small, one or two bedroom apartment such as a bachelor’s pad, a one-bed penthouse, a one or two-bed apartment or a small maisonette in a thriving hot spot such as St. Julian’s, Paceville, Sliema, Bugibba, Qawra, Xemxija. These smaller properties sometimes yield the best rental return depending on the market. This return can be anywhere from 4% to 8% per annum.
- Invest in a larger medium-sized property with two or three bedrooms such as an apartment or maisonette. Depending on your strategy, you may choose to accommodate the English Language schools or simply cater for smaller families or couples. The locations that would work for upmarket clients would be Swieqi, Ta’ Xbiex Ta’ L-Ibraġġ, Sliema, St. Julian’s; whereas if you are looking for medium market clients you would look in the following areas: Msida, Valletta, Gżira, Tal-Qroqq, St. Paul’s Bay and Marsascala. Rental yields are still substantial and may range from 3.5% to 6.5%.
- Invest in a small and old property such as a little townhouse located in The Three cities, in Valletta, in Rabat or in one of the quaint old towns such as Zejtun, Balzan or Tarxien. This kind of property, if converted to high specifications, will attract the out-of-the-ordinary rental clients who are looking for a little tranquility and want to avoid the hustle and bustle.
- Invest in a Special Designated Area (SDA). The properties in these areas are not only rising rapidly in appreciation on a yearly basis, but also yield excellent rental income. If you are looking for a place to move into when the kids move out, somewhere like Portomaso, Tigne Point or Fort Cambridge would be ideal. The advice we’re giving is that you should buy now, whilst prices are still affordable, and so when that day dawns on you, you would have rented the property for a few years and the place would be ready for you. Other SDAs are also interesting prospects.
At the end of the day, do follow the guidelines of a reputable estate agency. A credible real estate company in Malta will have specialists in rental investments that will assist not only with the search for the ideal property you have in mind, but also help you with closing the sale, finding you the right tenants to let your property and ensure that are provided the necessary paperwork to safeguard your interests.