Investments in Mediterranean nations are 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), 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.
List of 5 Questions Investors need to ask before Investing in Malta’s Real Estate
1. What are the Immediate and Long-Term Goals?
When it comes to any investment decision, 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 investments. 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 for 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.
The Final Word
There is no doubt that investing in Malta’s Real Estate market 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.