Buying property in Malta property? Read these 10 tips first

As any investment guru will tell you, you can never go wrong with real estate investment. Not only will it financially insulate you against the negative effects of inflation, which is inevitable, but it’ll also provide you with a reliable and constant income stream. Location is very important and Malta is a small island with limited land. So property prices will most likely remain stable according to Arthur, sales manager from Karkanja real estate agent.

 If you’re interested in real estate investing but don’t know where to start or how to go about it, then you’ll love our tips on some of the essential considerations that you have to make before starting your real estate investment journey.  

1. Shop around:

Before you purchase that first property, it’s important to take your time and shop around as opposed to just purchasing the first one that comes your way. Usually, if you spend more time looking at different options, you’re able to narrow down your choices so that you get the truly best picks out of what’s available. 
 
2. Do a financial analysis:
 
When buying property, it’s important to be realistic and try by all means to refrain from purchasing property that has been valued through the use of pro-forma estimates. Rather do your own due diligence on a property that you’re interested in, to make sure that you ultimately pay its real value. 
 
3. Be clear about your financial goals: 
 
It’s essential that you figure out what your financial goals are before you make a property purchase, as that will determine the type of property you purchase based on its ability to add value to those financial goals. 
 
4. Don’t give up your employment yet:
 
Keep your job long enough to save for a down payment, and it’ll also help you to get a favourable credit score for when you need financing later.  
 
 
5. Invest in the long term:
 
Go for long-term investments that produce cash flow instead of short-term buys, as the latter rarely produce any substantial returns on investment. 
 
6. Purchase well-maintained properties:
 
If a property sounds too good to be true then it probably is. So be sure to evaluate a property thoroughly, and don’t rush into buy it just because it sounds like a good deal. Only buy well-maintained properties that are in good condition and avoid fixer-uppers while you’re starting out, because no matter how much potential they have, they’ll end up costing you way more than you bargained for. 
 
7. Arm yourself with knowledge: 
 
Educate yourself on an on-going basis about the real estate market and the laws that govern it to make informed decisions based on research. However, don’t limit yourself to books, but rather speak to experienced property owners, attend real estate seminars and read relevant books because the more you know the better and more informed your purchasing decisions will be. 
 
 
8. Don’t wait for a perfect time:
 
Don’t put off investing because it’s not the ‘right time’. The truth is, there will never be a perfect deal, so dive right in and start searching for options now. Use your financial goals as criteria, and opt for a property that compliments those financial goals. 
 
9. Start early:
 
Start saving for your real estate investments early on, so that by the time you’ve had your fun and are ready to take on the responsibility, you’ll have something saved up for the down payment. 
 
10. Don’t buy in deteriorating areas:
 
Steer clear of area with a high vacancy rate or declining infrastructure. Rather invest in boring, working class areas with nice infrastructure and great developmental prospects. Karkanja.com has a variety of property options in this category that are based in well-heeled and up-and-coming areas with attractive real estate options. 
 
 
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