It is imperative to clarify exactly which factors play the biggest role when you buy a property for investment purposes. What makes for the perfect property is open to interpretation but luckily there is a transparent and recognised set of criteria than can easily be applied as to what qualifies a property as being a better investment than the rest:
- Prime locations: Investment properties are usually located in an area or neighbourhood that is extremely sought-after and coveted
- Quality: Materials used for construction and interiors are above the average standard and the finishes are impeccable
- Higher price: The perfect property may cost more, but will also rent out for more
- Security and privacy: People who rent better quality properties are adamant about top-class security and having absolute privacy since they are inherently comfortable with paying a premium rental
- Appliances: Premium properties must have the best of everything when it comes to appliances. This includes not only the functionality of items but appliances also need to be top quality brands that discerning tenants are familiar with and regard as quality
- Amenities: Sought-after rental properties all have something special that distinguishes them from the rest. This can be anything from having access to a swimming pool, having a cinema room, a gym, access to landscaped gardens, a sauna, a Jacuzzi, the use of a communal tennis court or having something as simple as a concierge service. Added value makes any property that more special and appealing to successfully rent out.
Logically it is inevitable that purchasing a property that will fetch better returns will initially cost an investor more, but any owner will then be able to charge a premium rent securing return on investment. Successful investors have long realised that quality properties are the least affected during troubled economic times and that they offer a preferred hedge during times of rising inflation.
Important points to consider are:
An investor can either buy a property to let out immediately or buy it to improve or upgrade and then put the property up for sale at a higher price. Most savvy investors however have long-term goals and will therefore buy a property with the intention of renting it out for some years. Not only are they going to be deriving a better income from the property from day one, there will also be the above-average capital appreciation of the property itself over time.
- Choose your location wisely
Properties that command good rentals are always located in the best and most attractive neighbourhoods. This automatically makes it easier to rent the property out and this will minimise vacancies. Also keep in mind that the better the location, the better the capital appreciation rate will be over time.
- Be serious about making good money
Quality rentals are more exclusive and because they initially cost more to purchase, will take longer to pay off but these properties offer an above average return on investment. These types of properties are also less likely to be affected by economic woes or temporary dips in the market. If you invest in a quality buy-to-let property, you stand a very good chance of making some serious money but the secret is to treat it as a long-term investment.
- Always ask the assistance and advice of an expert when buying
The demand for rental properties in Malta is huge and this is especially true when it comes to more expensive, quality properties with good finishes in the best of locations. At Homes of Quality we have seen that investing in a property in sought-after locations always realises far better returns for our clients. With us you will have the opportunity to seek out the very best buys, as we have access to properties that no-one else has and in many instances we sell these properties before they have even been advertised. We are thus perfectly placed to identify the best buy-to-let properties with the most investment potential, guaranteeing a good rental from day one!
Call us on (+356) 2277 0620 or email us at info@hoq.com.mt
