- Posted by admin in Tips & Advice
One of the most frequently heard question heard by real estate agents is : Is it worth investing in real estate? People often want to invest but lack the knowledge of where to invest their hard earned money. Our answer to that question is a definite YES.
Here are some of the advantages to investing in property.
- Property Value appreciates over time: History has shown that the value of Real Estate increases over time and most of the time it results in profits and revenues. House hunters’ demands might change, the economy might fluctuate, but the demand for property will always remain. Economic recession has been shown to influence the real estate market negatively periodically, however the industry always weathers the storm and comes back even stronger. Apart from property appreciation, property investors can also benefit from rental income, which can guarantee a regular cash flow, should they opt to rent out the property.
- Increase in property value following remodelling: Property value can also increase following upgrades, refurbishment and restructuring exercises that increase its value. The value of an older property might increase following for instance: a façade repainting, improvement in room lighting, opening up the space by knocking out non-structural walls, repainting the walls in light, neutral colours, upgrading the flooring or bathroom tiles, upgrading the kitchen or making the home more green efficient.
- Property is always in demand: Let’s face it, there will always be a need for property as people always need a place where to live. There is currently an increase in demand for real estate in Malta. In a recent study published by PwC, carried out amongst real estate agents in Malta in January 2018, 26% of the respondents attributed the surge in demand for property to the increase in the number of foreign workers in Malta, whilst 95% of the participants stated that the extensions on the capping of stamp duty and refunds on properties acquired in designated areas had a positive impact on the industry.
- It is a safe investment: Real Estate has been shown to yield better results and is less risky than investing in the stock market or in banks. For instance, whilst property and rental prices appreciate as inflation increases, money in banks reduces in value when inflation increases as the same amount of money will reduce your purchasing power.