Investment property in Mediterranean nations is booming. While the COVID-19 Pandemic might have slowed things down for a while, investment options are decisions are slowly picking up again. Malta, situated right at the heart of the Mediterranean is fast emerging as an ideal investment destination.
While picking up real estate in Malta brings with it a lot of advantages (taxes and citizenship) over investment property, there are still other considerations that investors should make before finalizing their decision.
In this article, we take help from leading financial and real estate investing experts and request them to help us. We list down five questions investors need to ask themselves before opting for a Malta Property.
Real Estate Investing
Anyone who engages themselves in the process of buying selling houses or residential property is doing real estate investing. While you are out there investing in real estate, there are several factors that you need to consider for an investment property.
- Will the value of an investment property increase?
- How the future interest rates and taxes will affect you?
Even after having so many variables that are not in your control, there are people who are actually making from the real estate investing businesses. How? Well, there are many ways to do it.
Given below are some methods that you can use to make money out of real estate investment.
- Fliping the houses.
- Buying & Selling.
- And much more.
You can also invest in housing even without buying a home- you can buy stocks from the home builders. Another way to earn money from real estate is REITs (Real Estate Investment Trusts).
Investment Property: How Real Estate Industry Works?
The real estate industry is all bout buying and selling real estate properties. In fact, the real estate business is one of the supporting pillars of economic growth for most countries.
Given below are a few important aspects of the real estate industry.
Construction Of New Buildings: It is a component of a gross domestic product that encapsulates residential, commercial, and industrial constructions.
New Home Buildings: It is a critical category of the construction aspects., it includes the construction of single-family homes and townhouses.
Real Estate Agents: They are individuals who offer their assistance to the business to individuals with the real estate properties’ buying selling.
List Of 5 Questions Investors Need To Ask Before Investing In Investment Property
Before you can invest in an investment property, it is important that you have a clear idea about the property. Here we have come up with some questions you should ask before investing.
1. What Are The Immediate And Long-Term Goals?
When it comes to an investment property, there are two major issues that investors need to consider. What will happen to your investment in the short-term and the results of long-term investing decisions?
Are you looking at a quick real estate flipping strategy or do you want to hold on to the property and see it grow in the next three to five years? Depending on what you feel is right, your other decisions should be informed by these issues.
2. What Is The Budget You Would Like To Shell Out?
There are numerous times when investors make the mistake of going overboard with their budgets because of the FOMO syndrome (Fear Of Missing Out). For example, your budget is $200,000 USD. However, you see a property in the $700,000-$800,000 mark and go for it.
This is something that should not be done at any cost simply because it offsets the other planning. If you have a budget in mind, you should stick to the same as other strategies are based on the same. This will ensure that you are not unnecessarily stretching out your resources.
3. Are You Making An Investment Choice Or Looking For A Personal Home?
They always say that business and pleasure do not mix well. In the past, many investors have bought properties for business reasons or as residential investment property. However, after staying at the property for some time, they develop an emotional connection with the same and cannot offload it.
This can hamper your financial prospects significantly. If your family members forge an attachment to the place, you will not be able to sell the same when you receive the right offer. This will damage your finances. This is why it is best to separate the two right from the start.
4. How Are You Going To Arrange The Finances- Savings Or Borrowings?
Getting a hold of the finances and arranging the same play a major role in influencing your investing decision. Asking a bank for financial help and borrowing will make you pay interest rates. This might force you to look for rental income to compensate for the EMIs.
On the other hand, if you are using your savings, you will have to think about entirely different challenges. We hold our savings as close to our hearts as possible. Using savings mean that your investment decision is going to return nothing but profit and be risk-free.
5. Which Location In Malta Are You Going To Invest In?
Even though Malta is an archipelago and home to 400,000 people, you need to ask yourself, where should you invest in it. Should you go for a tourist location, like the one on the beachside cities, or should you be safe and invest in the capital?
These decisions are important in terms of assessing the growth of your investment. Malta’s government has also created Special Designated Areas where non-nationals can invest in real estate and be eligible for certain benefits. This is why this question is pretty important.
There is no doubt that investing in Malta’s Real Estate market or its investment property can be a wonderful investing decision. However, it is important that investors plan ahead and think about the various variables that can act as impediments to their investments.
Once you have answered all the five questions mentioned in the article, you will be in a much better position to make your decision. If you think you can add to the list of questions, please do so in the comments section below.