Several people who have money to invest normally look at property. In a low interest rate environment, keeping money locked away in a bank is not financially productive. It has become commonplace that people who have managed to save some funds, invest in a second, third or fourth property. In this article, we shall be discussing why property remains the most worthwhile investment in Malta.
Consistent increases in value
One notices that over the past years the value of property across the board increased significantly. If one were to invest in property and sell a few years later, it is quite safe to assume a profit will be made since that is how the market has operated for years. People who bought property ten years ago and wish to sell today are likely to make an enticing margin from their investment. The level of margin depends on the type of property, the buyer and location. The properties that have increased in value dramatically over the past years include those dwellings with overlying airspace that can be developed further. These are normally targeted by property developers and sale prices would be quite interesting in view of the development potential.
A proven track record
Property investment holds one of the most successful track records in Malta. Compared with other investments, where one can lose money, it provides to a certain extent peace of mind that a good return will be made. One must also mention that the options for investment in Malta are quite limited especially when considering that there isn’t much that can deliver the same returns as property.
Rental capability
Most people who buy property as an investment do so to supplement their existing income with rental revenue. Considering the current rental income levels, it is quite natural to anticipate that revenue would equal a salary. This shows that the income generated can to a certain point, improve significantly one’s lifestyle.
Low interest rates
Buying property has become more accessible from a bank financing point of view. When compared to past years, interest rates have reduced significantly, enabling buyers to take larger loans to finance the acquisition of properties. This low interest rate environment continues to make the investment in property more exciting as the money paid over and above the loan will not prove to be excessively significant when considering the stretch of time.
Considering a property investment? Speak to us by sending an email on info@ownersbest.com.mt