Louis Schembri
Franchise Owner – St Julian’s Office
How far does a budget of €500,000 go in the local real estate buy-to-let market and how would you invest it?
Having such a budget I would invest in the key locations of Sliema and St Julian’s, where there is always a high demand for rentals as well as property purchases. Another area worth considering – and which in recent past has increased in popularity – is the Valletta and Floriana seafront. Here, landlords can make a great return on their investment, especially when venturing into the short-let business. Apart from the excellent return on investment in these areas, investors will always get substantial capital appreciation.
If you had a budget of €2m for a buy-to-let purchase, would you invest it in a period property located in a historic locality, or focus on a contemporary property in a modern town or lifestyle development?
With such a budget I would spread my investment. I would purchase a seafront apartment with a spacious outdoor area, which is always in demand for rent or purchasing. I would also look into investing in a period townhouse which still retains its authentic features – foreign clients are especially keen to rent such properties. Moreover, given the lack of supply, such period properties continue to appreciate in value.
When looking for a residential home, what kind of outside space, mod-cons and added value would €2m buy?
With a budget of €2m, one would expect to have a comfortable outdoor area with a pool, an interconnected garage, PV panels, fully equipped fitted kitchen and generally air-conditioning in all rooms.
Frederick Stivala
Franchise Owner – St Julian’s Office
How far does a budget of €500,000 go in the local real estate buy-to-let market and how would you invest it?
In this case, I would consider two options. The first would be to buy two small properties in the €250,000 region – such properties usually give you the best percentage return on investment. The second option would be to purchase one property within a special designated area complex. These properties will usually give you less percentage return on capital – however since foreign nationals have various advantages when purchasing in these SDA complexes, the demand is always good, should one need to liquidate their investment.
If you had a budget of €2m for a buy-to-let purchase, would you invest it in a period property located in a historic locality, or focus on a contemporary property in a modern town or lifestyle development?
I would definitely go for a lifestyle development. Foreigners love lifestyle developments as they are usually safe, clean and most enjoy amenities such as pools, gym, eateries and shopping.
When looking for a residential home, what kind of outside space, mod-cons and added value would €2m buy?
A property of this value would need to have a pool, garden, garage, privacy, entertainment areas, storage space, as well as energy efficient heating and cooling systems.
Timothy Scerri
Head of Residential Sales – Sliema Office
How far does a budget of €500,000 go in the local real estate buy-to-let market and how would you invest it?
A €500,000 budget for a buy-to-let is quite a good one – which means one could opt for various options. A large apartment or a penthouse in St Julian’s, Swieqi/Ibraġġ, Madliena and Baħar iċ-Ċagħaq are a few areas one should consider as the rental market in these locations is very sought after. With the budget, one could also find a three-bedroomed apartment in Sliema which would be considered the better option as one would be closest to the main office district and other amenities. Alternatively, one could opt for a two-bedroomed residence in a Special Designated Area (SDA). Another proposal would be buying two properties rather than one as with the said budget one would manage to purchase a two-bedroom apartment and a one-bedroom apartment in the areas mentioned earlier. This option would generate a higher rental income.
If you had a budget of €2m for a buy-to-let purchase, would you invest it in a period property located in a historic locality, or focus on a contemporary property in a modern town or lifestyle development?
I believe both options are good – the choice would be a matter of opinion and choice. A period property in a historic locality is normally rented to foreigners wanting to integrate with the local society, having all amenities within walking distance and obviously love village life, whereas a contemporary property with that budget would be rented to families having younger children situated closer to the English-speaking independent schools.
When looking for a residential home, what kind of outside space, mod-cons and added value would €2m buy?
Nowadays people spending that kind of money would prefer purchasing a property that would have all the modern commodities rather than having grand houses with a small garden or none at all. People prefer having three bedrooms all with bathroom facilities rather than having four bedrooms with two shared bathrooms. Trends have changed and people look for comfort rather than space although with a €2m budget one will normally get them both.
Robert Spiteri Paris
Managing Director
How far does a budget of €500,000 go in the local real estate buy-to-let market and how would you invest it?
The property market offers some excellent buy to let investment opportunities for prospective purchasers with a budget of €500,000. I would invest such funds in locations and markets which have performed well in recent years and are likely to remain robust in the foreseeable future, these being the coastal towns, especially those located in the harbour area. Such towns include the historic capital city of Valletta, the unique and beautiful Three Cities and other localities such as Ta’ Xbiex and the more modern towns/commercial district of Sliema/St Julian’s and surrounding areas. With this budget one can acquire an apartment or maisonette in a sought-after street and in an up-market location, within proximity to quality amenities, the waterfront and commercial centre, etc. Naturally tenants are attracted to properties closer to the seafront. A word of advice would be to try to opt for a property with some outdoor space as this could serve as an important selling point due to the Maltese climate, many prospective tenants are looking for a sunny spot to sit out and parking facilities would be considered an asset. Another option would be to go for two or three smaller properties which may result in a better rental yield and income in the short term but would not benefit from the same capital growth that one solid investment would give you long term as explained in my next reply. It all depends on one’s plan.
If you had a budget of €2m for a buy-to-let purchase, would you invest it in a period property located in a historic locality, or else focus on a contemporary property in a modern town or lifestyle development?
For prospective clients with €2m to invest in property buy to let investments, I would advise looking into both options. Historic localities and in particular period buildings (houses of character/townhouses) are well sought after by visitors to our shores as many appreciate living in a property and environment which is typical to the island and are looking for the ‘full Maltese experience’ which such charming and characterful properties offer. Lifestyle developments are also hugely appealing to expats moving to the island, as such residential developments usually offer a vast array of amenities, practicality, and comfort. A budget of €2m would allow an investor to purchase both a modern, sea view apartment in a lifestyle development and a typical house of character in a more historic village centre. With such a budget one must decide whether to invest in multiple/ a larger portfolio of properties at the lower end of the market or to look more long term by investing in a couple of higher value but better quality/unique properties. As a rule, higher yielding properties are usually at the lower end of the market. As rents increase, the number of potential tenants narrows, and yields begin to decrease however one must not ignore capital growth. For capital growth values at the lower end of the market generally do not rise as rapidly for higher priced properties in desirable areas. When opting for a property in a lifestyle development with such a budget, it is important to opt for seafront and some outdoor space, ideally a sizeable terrace and when purchasing a period property, it is important to opt for a house with a garden and ideally a swimming pool in central and more sought-after localities as are the three villages (Lija, Balzan and Attard). Clients opting for a period house usually do so to also enjoy their private outdoor space. Such outdoor space is usually very important to these clients.
When looking for a residential home, what kind of outside space, mod-cons and added value would €2m buy?
The purchasing power of €2m for a residential home varies dramatically across the island. Like with every market across the world there is always a premium on location, especially attractive locations found along the east coast of the island. Therefore, when it comes to villas for instance, it is not surprising that a budget of €2m would get you more outside space in locations which are further inland or rural when compared to prime and sought-after coastal markets as are Madliena, Ibraġġ, San Pawl Tat-Tarġa and Mellieħa. With a budget of €2m one can certainly purchase a great residence with ample outside space, including a sizeable garden and swimming pool in an attractive neighbourhood.
At this price level one could expect to view residences finished to a high standard including all standard mod-cons and more.