Malta has joined €: what about property investment in Malta?

C

Calico

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Hearing that the island of Malta has adopted the euro got me thinking recently. I never hear too much about Malta as a property investment location (or a place to live/retire). Could this be a potentital hotspot over the coming years given that, of the top of my head, Malta has:

- English speaking population
- Growing financial services hub a la Channel Isles/Cayman etc.
- Is a member of the EU
- Has a mediterranean climate

I admit, I haven't done any research........maybe Malta has come and gone by now, just wondering if anyone has any thoughts.......
 
Re: Malta

Prices are expensive in Malta, and the market is tight. I think Malta is great, the people are wonderful and there are business opportunities galore, but investing right now in property there would be coming in at the high end of the cycle. Far better to wait until 2010 when a number of "social" building schemes will be complete and there will be a surplus of property.
 
Re: Malta

Tax regime very favourable for persons who own property there 0%.

Id say its a good steady bet look at all countries after they get there hands on YOYO's (euros).

Dont have anything there myself as i like bigger risk,!
 
Re: Malta

Was there last June, property is very expensive due to the Euro! All excess Maltese Lira was spent on property as there wasn't a lot of it in the banks!
 
Re: Malta has joined €: what about property investment in Malta?

Probably meant the anticipatory pre-euro arrival price spike.

Also the Maltese Lira was locked to the euro in July 07 and quite stable prior to that.
 
Re: Malta

ClubMan said:
What do you mean?

Note that Malta adopted the € this year.
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Bit like Ireland really Maltese didn't trust the bank so kept a lot of money 'under the mattress' so to speak, so they spent all their Lira on property to avoid the taxman. There was lots of building going on at the time and property seemed very expensive.
 
Re: Malta has joined €: what about property investment in Malta?

Yes property in Malta is overvalued. I would wait at least for several more months before considering buyin there. The infrastrucutre of the island als needs further improvement if tourism is to really boom again.
 
Re: Malta has joined €: what about property investment in Malta?

Visisted Malta last year and took a bus tour. The guide gave us various facts about the people/island and one of those facts was the existence of a law that states property rented to Maltese people has the rent capped at a farily low ceiling. For this reason, Maltese people who own properties will only rent to foreigners. She also said some Maltese people will agree a rent with a landlord and then go to the local council to complain about exhorbitant rents and council will then enforce the capped rent law. She said it is a ridiculous law but the political parties are afraid to reform it. I didn't really understand it in full, but if you are thinking of investing, it is something to check out.
 
Re: Malta has joined €: what about property investment in Malta?

cookev said:
Visisted Malta last year and took a bus tour. The guide gave us various facts about the people/island and one of those facts was the existence of a law that states property rented to Maltese people has the rent capped at a farily low ceiling. For this reason, Maltese people who own properties will only rent to foreigners. She also said some Maltese people will agree a rent with a landlord and then go to the local council to complain about exhorbitant rents and council will then enforce the capped rent law. She said it is a ridiculous law but the political parties are afraid to reform it. I didn't really understand it in full, but if you are thinking of investing, it is something to check out.
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That must have been an exciting holiday - bus tours including lectures on the Maltese tax laws! :(
 
Re: Malta has joined €: what about property investment in Malta?

ClubMan said:
That must have been an exciting holiday - bus tours including lectures on the Maltese tax laws! :(
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I was in Malta a few years back and a tour like that would have been the high point. I won't be back.
 
Re: Malta has joined €: what about property investment in Malta?

Cookev, with all due respect your tour guide did not know what she was talking about.

The prensent rent laws in Malta are no different from those of most other countries. A rent agreement is a contract and is ruled by whatever is agreed bewteen the lessor and the lessee.

The only rent agreements that are protected are those predating 1995. Now even those are going to change as the Maltese government has just issued a White Paper to reform among other things rent agreements that are pre 1995.

It makes sense to rent now before deciding on buying becaseu the price of property in Malta is far too high at present.
 
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