During the last couple of years, the property market has been an increase in properties bought for investment purposes.
As the country has seen an increase in foreigners relocating to Malta, many saw it opportune to invest in property for rental purposes. However, one can still purchase a property not for rental purposes but to resell it. Here are some tips when it comes to buying a property for investment purposes.
Prior to start looking for properties, have your finances in place. Be sure how you are going to pay for the property. If you need to take a loan, then speak to your financial advisor or bank, to determine how much you can afford.
The monthly repayments are your responsibility whether you have tenants or you resell the property. Therefore, it is very important that you would be able to make the repayments even without having any tenants.
If the property is a fixer-upper, make sure to have enough finances for the conversion.
Purchasing an investment property in the right location is paramount. If you are buying a property for rental purposes, taking into consideration the available amenities within the proximity of the property.
Properties in Tigne Point, Sliema, St Julian’s and Mellieha tend to be overpriced and the return on investment may not be as anticipated.
If you would like to attract young families then opt for properties that are in the proximity of schools, playgrounds or promenade or nature walks if you prefer them, and obviously, close or well connected to hospitals / clinics.
If you are reselling the property, choosing a locality that is centrally located but in a quiet area would make it stand out.
3. Finishing and Maintenance
When a property is furnished to modern tastes, it is more likely to be rented out at a higher price and quicker. Offering free internet or cable, would make your property stand out even more.
The property must be maintained on a regular basis and if your property is within a block of apartments, make sure that the common areas are properly maintained too. Unfortunately, you might envisage some damages, which you would only find out when the tenants move out.
If the plan is to resell your property, there are two scenarios – buying property from someone who already lived in it, modernizing it a bit and then reselling or buying a property that is in process of being built, so you may choose finishings.
If you are buying lived in property, check state of kitchen and bathrooms, the newer they are, and the better kept they are – the better. Kitchen and bathrooms are big cost to replace from old to new so try to avoid that extra cost. Each lived in property needs thorough cleanup and new fresh coat of wall colour. With some fresh wall colour and maybe new curtains lived in property will get additional shine and look attractive to potential buyers.
If on the other hand, you are buying property on plan or during development period, you will have freedon to choose how it will be finished. There would be no need to furnish the property, however having it converted to cater for modern amenities such as air-condition connections, or even solar panel connections, would make the property more marketable.
Prospective buyers would be happier if everything is ready and they would only need to move in furniture, however be very careful about finishings as it is not easy to finish up to everybody’s taste so if you can choose finishings stick to soft neutral colours that will be eye-pleasing and easier to sell than some cool extravagant ones.
4. Choosing a Reputable Estate Agent
Whether you are looking for an investment property, or whether you are putting the property on the market, having knowledgable and reliable estate agent is essential to help you finding and negotiating right deal that will bring you maximal income and good return on investment afterwards.
At Owners Best we buy, sell, and develop properties and we’ll be happy to help you find your new great investment.