Questions First Time Buy-To-Let Buyers Need To Ask

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Buying a buy-to-let property is a step in the right direction as it’s a lucrative investment providing regular income. It’s important to note that you would be investing both time and money into a buy to let property so it’s imperative to make sure that you’re prepared to take on this challenge.

The growing interest in foreign nationals wanting to settle down in Malta is incentivised by a number of things such as the Mediterranean lifestyle, career opportunities, the weather and last but not least the easy going islanders. This has contributed to a demand in property development and with more properties for sale on the market, one would assume a decrease in apartment rental prices however this has only strengthened this sector of the market.

How is Malta’s Property Market?

Malta’s property market has remained healthy even during the pandemic, this was an encouraging sign to buyers, sellers and landlords alike. As the financial returns they’ve received have fueled the construction industry boom.

The BIG ?

The big question mark on people’s minds is ‘Can I afford it?’ A lot of factors need to be taken into consideration therefore it’s advisable to speak to a financial advisor so they can advise you on the complexities of buying a property to rent out as well as any tax implications.

One must also take into account your liabilities, as a landlord you will be responsible for maintaining your property and making sure its safe for tenants to live in.

Where To Buy

Depending on what sort of tenant you’re looking to attract you need to think about the potential location they’d want to live in for their stay on the island. Therefore, it may help to create different prospective tenant personas in order to better understand your target market as well as your target location. Once you have researched this, it will be easier to decide whether the potential property you are going to purchase is a good rental investment.

Investment Yield

An often overlooked aspect of the investment yield is the cost needed in order to advertise that the property is available for rent or if you decide to use an estate agent to market the property. Whilst, doing so alone you’d need to consider the value of your time.

A pro tip to consider is that like any investment, property prices and rental incomes can differ month to month. Therefore, investing in providing a great service to tenants would increase the chances of them providing a good review as well as potentially keeping up touch and becoming repeat tenants

Pros & Cons

We’ve summarised a pros and cons list to have at hand when making your final decision.

Pros

  • Regular monthly income
  • Maximise capital through leverage
  • Lucrative Rental Market

Cons

  • Managing tenants can be tedious
  • Tenants could potentially damage the property
  • Reduced income from potential vacancies

In summary

As a first time buy-to-let investor there are a lot of things to consider and even more questions to be answered. If you’re looking for help with the process you should set up an appointment with us and we’d be happy to guide you through the process step by step.

If you’re curious to see what properties we have available at the moment have a look at our current developments page on our website. Have a look at our available properties here.