Investing in Property in Malta vs. Investing in stocks and shares

When you look at the pros and cons of investing in stocks and shares versus property you are also, in essence, discussing the pros and cons of investing in traditional pensions versus property in Malta as most traditional pensions are invested in global stock markets.

 

Most analysts would agree that property was a better investment during a particular year than stocks and shares, however a distorted picture is often provided (unintentionally) to the detriment of property investment as they do not take into account or explain some of the major advantages that property investment has over stocks and shares in the long term.

 

An analyst would say:  Well last year (Year X) average property prices increased 5% and the stock market was up 13% so stocks and shares performed better - this year (Year Y) property prices increased 10% and the stock market was up 5% so property clearly performed better however on an average stocks and shares are performing better.

 

The reality of this is true and if you look at a short term investment plan in stocks and shares one can come out a huge winner however basing performance on a comparison of just two years with the intention to invest long term may get you in trouble. Stocks and shares can work better for you in the long run should you have the capital to risk for a period of time.  The benefits can be exponential however there is a risk and one should always look to a qualified stock broker to guide you if this would be your choice of investment.  Just remember the writing in small font at the bottom of the page.

 

Property in Malta on the other hand, though there are no guarantee’s that it is risk free, has a stronger reputation to provide appreciation and more opportunities over a longer period of time.   As long as you can make the mortgage payment, one can rent their property, refinance their property over time and sell at a profit.

 

The return on investment (ROI) in property, if guided correctly by a professional real estate agent in Malta, can work better for you.  There are various opportunities that arise from time to time, that if you speak to the right professionals, and make them understand what you are looking for, will find you a property that will get you a reasonable rental income and in an area that fetches a desirable appreciation.

 

Banks will not lend you money for stocks or shares because they are volatile, not only can they go down, they can go up but they can also lose virtually all their value in a matter of a day or overnight. If a company is badly managed and there is a lack of confidence in their stocks, it is likely that the value of your stocks will diminish. Obviously, there is a flip side of that coin which means that if you invest in the right stock then the value of your stocks will increase.  However, banks do not take a risk on your luck.  Property in Malta is practically an institution- the banks lend money on a daily basis for property acquisitions so they understand the property market in Malta and know what a solid investment it is.

 

The point of this article is not to deter anyone from investing money into stocks and shares but it is only to shed light on the subject to those who may not understand or have an idea.  It is always recommended to discuss any matters with your accountant or a professional stock broker.

Buy your first property in Malta. Don’t hesitate!

When I was just eighteen years old I was given the opportunity to buy my first home.  My immediate instincts was to buy the property, which was a brand new developed two bedroom apartment in St. Julian’s, it was fully furnished at the time and was going for the menial price of Lm 42, 000 or € 97, 833.  The developer at the time was a friend of mine and he had practically organised the mortgage for me through a contact he had at the bank and was just waiting for me to give the go ahead to arrange a meeting to sign the Konvenue.

 

I had wanted a final approval from someone that had my best interest at heart and therefore I asked my father to come with me.  He did not have to assist me with the purchase at all, I only needed his blessing.  It turned out that my father could not see the importance of me buying the property and he felt that investing at the time would not be a great idea especially since I had just bought a car and was starting my new life in the real estate industry. I did not buy the property.

 

I still look back at that day and feel that if I had purchased the property in Malta it would have changed me into a more responsible person sooner and my entrepreneurial self would have matured quicker.  It took me eleven years to finally get on the property ladder during which I through away my money on going out to Paceville, Malta’s Entertainment land, eating out, travelling (A good investment) and other entertainment.

 

Though I would never hold a grudge against my father for being protective, I do wish I could turn back the clock and take the decision I wanted to make.   Besides saving money by default your property in Malta appreciates according to market conditions.  Over a period of time you are automatically making money.   If I would have bought that property in St. Julian’s, I would have been able to sell that property six months later for Lm 52, 000 / € 121, 127 making a twenty something percentage profit.  Imagine I kept it till today.

 

You should buy a property in Malta.  Even if it is an investment that you may consider selling later for what ever reason.  If you can afford a mortgage payment contact a real estate agent in Malta for some sound advice. Feel the market and than when the opportunity arises grab it.

Lighting up your property in Malta

The right lighting can turn a dull room into something more exciting and vibrant however with so many fixtures and fittings this can be a difficult task for anyone that does not have the experience or know-how.  We have prepared a simple guide to assist you on your challenge to make your property in Malta a brighter home.   

 

Bulbs

Follow our simple guide to which bulbs should be used for which purpose, and you won’t go wrong.

 

Remember: never to put a higher wattage bulb than the fitting instructions suggest; and buy the highest wattage allowed then control it with a dimmer.

 

Tungsten (incandescent)

The everyday household bulb.

 

Light: warm, yellowish.

Available in: clear, pearl, silver reflector or coloured versions with bayonet cap (BC), small bayonet cap (SBC), Edison screw (ES or E27) and small Edison screw (SES or E14). The clear type is best when the bulb is visible, in a chandelier for example, whereas the silver reflector is perfect for spotlights.

Ideal for: creating warmth, cosiness, intimacy.

 

Advantages: cheap and easy to find. They use mains electricity and don’t need transformers or additional equipment.

 

Disadvantages: if you use a wattage that’s too high your paper shade might get scorched, which could be dangerous. Constantly switching them on and off will shorten the lifespan. They tend to blow suddenly.

 

Tungsten halogen

Known simply as halogen bulbs, they burn at a much higher heat than tungsten and the case has to be made from quartz rather than glass to withstand the temperature.

 

Light: whiter and purer than tungsten.

Available: in low voltage (low-voltage tungsten halogen or LVTH) and mains voltage. For the former, you’ll need a transformer, fitted or inbuilt, to keep the wattage down to 12 volts.

Ideal for: uplighters.

Advantages: energy-efficient. With low-voltage bulbs, the design can be slim and compact. The mains-voltage type can be used in conventional fittings without a transformer, but ask your electrician or manufacturer to be sure.

Disadvantage: expensive to replace.

 

Fluorescent

They’re associated with the harsh, buzzing strips of factories and offices, but they’re now available in lots of new varieties.

 

Light: flat (curved and circular tubes are better).

Available in: compact fluorescent tubes and compact fluorescent bulbs (known as compact fluorescent lamps or CFLs) that look like ordinary ones.

Ideal for: mini strip lights in kitchens.

Advantages: energy efficient and economic. Can be used with mains-voltage fittings.

Disadvantages: can’t be fitted with dimmers.

 

Downlighters

They cast distinct pools of light onto the surface below. They’re usually recessed into the ceiling or mounted on the surface and can be fixed or directional. They suit modern and period homes, but you might not have enough recess in the ceiling or prefer not to cut into it and disrupt plasterwork or period detail.

 

Install downlighters in areas where fixtures are unlikely to move, such as above kitchen and bathroom surfaces, rather than at the ends of furniture. Without wall lights the effect can be gloomy, and rows of them can make you feel as though you’re in a shop.

 

The eyeball type of downlighter that can be swivelled is perfect for accent lighting to highlight a particular feature.

 

Energy saving

Lighting empty rooms and using bulbs of the wrong wattage for the fittings are two of the most common ways to waste energy.

 

Try these simple ways to cut down your electricity bills and help save the planet.

 

Turn lights off when you leave the room.

Replace ordinary bulbs with low-energy ones, especially those you leave burning for four hours or more. You might have to pay more up front - £5 as opposed to £1 - but you’ll save in the long run. They’re available in many shapes and sizes, although some can’t be used with dimmers.

Look for CFLs - they use 25 per cent less energy than ordinary bulbs and last up to 13 times longer.

Fit timers and dimmer switches. Motion sensors that turn on and off when you enter and leave are already being installed in some houses although they’re expensive at the moment.

 

Eyeball fitting

The bulb is encased in a housing and can be ceiling mounted or recessed.

 

Fittings

Consider how the fittings will distribute the light. This will depend in part on where you put them and whether you conceal or make a feature of them. Visit the lighting shop armed with your lighting plan.

 

Think about the look you want. Do you prefer minimalist, for example, or period. Chances are, it’s a mixture. Track spotlights can sit comfortably alongside Victorian shades, although they have to be mixed carefully. It is a shame to cut into elaborate plasterwork ceilings to fit recessed downlights, and a chrome-and-steel light fitting might look inappropriate hanging from a Victorian ceiling rose.

 

Look at the light when it’s off as well as on - it can appear quite different. More light will get through transparent shades than opaque ones, which give more localised pools of light.

 

Glare

There are two types of glare - direct and indirect.

 

Direct glare occurs when you look at a bare bulb - you’ll get spots before your eyes and maybe see a lasting image, especially if you’re in a darkened room.

 

Indirect glare is caused by a reflection of light, perhaps in a television or computer screen or even a polished surface. Avoid it by positioning lights so you can’t see the bulbs directly. Pendants hanging at eye level are especially uncomfortable for dinner guests.

 

Pendant lights

These usually hang from the centre of the room. Used alone, they’re the main cause of the ‘interrogation cell’ look. Although they’re a good starter for general lighting, they need a boost from other sources.

 

They tend to flatten shadows and cast a dim light. It helps to fit a dimmer or hang them on an adjustable flex so you can change the height or clip them out of the way. They come in a myriad of styles, from the ubiquitous paper lantern to chandeliers.

 

Professional fitters

Lighting is often seen as a technical minefield, but many lights are easy to put in and require no more than an understanding of basic electrical concepts. You should be able to change a fuse, wire a 13 amp plug and know how to select the correct size of fuse so that you don’t overload a circuit.

 

Always read the instructions for any fitting and keep them for future reference. If in doubt, consult a qualified electrician. Once you get into changing the permanent wiring of your house, complicated track lighting and computer-activated lighting systems, it’s time to call in the pros.

 

Standard lamp

A tall, freestanding light with a heavy base, which moves up, downand sideways.

 

Track

Several spotlights or floodlights can be attached to a track to take rows of LVTH or mains-voltage lights with no need for a transfomer. You can use more than one circuit, so you can have all the lights on at once or just some.

 

Uplighter

They throw light onto the ceiling, which then bounces off, creating a soft look. They work best in rooms with light-coloured ceilings, particularly in studies as the fact that the light is directed upwards prevents glare.

 

Use them behind sofas or large pieces of living room furniture. The light they create matters more than the lamp, so they’re usually tall and slender with minimal decoration. Put them in corners or in pairs and fix them at eye level or higher. A clip-on spotlight angled upwards creates the same effect.

 

Wall lights

Any fitting mounted on the wall, from shades to frosted fittings. They diffuse light gently into the room and are perfect for adding general lighting. Ceramic bowls diffuse light towards the ceiling; translucent ones give a softer light. They’re perfect for hallways and living rooms.

 

Wall washers

They give off an even stream of light. Often mounted on or recessed into the ceiling. Sometimes only the silver reflector shows, which gives out a brilliant light.

 

 

Online gaming employees spend millions on property in Malta, leisure

David Darmanin, Malta Today reporting:

They’re single, live in flash apartments, and earn thousands of euros every month: iGaming employees live it up, DAVID DARMANIN from Malta Today finds out:

The online gaming industry’s direct contribution to the Maltese economy this year has amounted to €15.6 million, according to government statistics.

But a gaming executive based in Malta has said the figure is likely to be as much as €30 million, when taking into account the spending of the industry’s highly-paid staff.

Speaking to MaltaToday, Aj Thompson, the Chief Operating Officer of Malta-based gaming company Tain Operations, said the figure published by the finance minister was only “taxable revenue, not counting the value left here by people working in this industry”.

“According to studies we conducted, the added value left by employees in this sector is generally the same as the amount gained by the exchequer in taxes from the same industry,” he explained.

“So if €15.6 million were gained in taxes, what the country has earned is effectively double that.”
Tain employs 46 people with an average age of 26. “A lot of them are single, rent out apartments in Malta on their own at higher budgets than usual, spend money on entertainment, clothes and other goods,” he said.
Although 70% of the team employed by Thompson is Maltese, the normal scale in this industry is 30% to 40% Maltese.

A lot of companies here were already established abroad and relocated along with their core staff, but these will be eventually replaced by Maltese – who tend to be more loyal and less willing to move around,” he explained. “Maltese people are happier to stay in Malta.”

Without doubting the benefits recovered by the local economy from this industry, Thompson warned of a “huge risk” as this industry could very well be creating a false economy.

“When we got here, the average wage in other sectors was of €800 to €950, and we were paying €1,400 to €1,650,” he said. “This meant that people had money to spend, which implies a risk because this industry moves from one place to another, and it can. If its benefits are taken off, a company will consider other destinations where the conditions are better. In Malta the VAT benefit for these companies was already taken away and this has hurt a number of players, because it’s 18% we’re talking about.”

Just to give an idea of how fast this industry can move, Thompson explains how he relocated Tain Operations from Curacao, in the Caribbean, to Costa Rica overnight. This industry is fragile, and there are only a few places from where it can operate, namely Albany, Gibraltar, Isle of Man, Costa Rica, Curacao, Antigua and Australia.”

Nowadays, the average salaries at Tain stand at €1,900-€2,000 monthly for the junior staff, although Thompson said they also “have people making €10,000 a month.”

Over the past months, the number of iGaming companies registered in Malta reached 330 – employing around 2,500 – of which those specialised “command a more attractive package” according to the Lotteries and Gaming Authority.

Meanwhile, market leaders in retailing and property letting estimate the added value left by this new population of employees to be very high.

Federation of Estate Agents President Ian Casolani said that “scarily enough, the rental market very much depends on iGaming employees nowadays,” with budgets that range from a minimum of €350 to €6,000 per month. The norm, says Casolani, ranges between €600 and €1,000 monthly.

Philip Fenech, president of the GRTU’s tourism sector, says what iGaming employees leave into the fiscal system “is very, very substantial”.

“Much of the money earned by staff in this sector goes through our system – bars, hotels, supermarkets and other retail establishments. Although the crisis hit many sectors, gaming was minimally hit. My reports are that these temporary foreigners are considered to be tourists on a long holiday, when one considers the way they spend in leisure. My reports come from gyms, restaurants, fashion outlets, supermarkets, clubs and other forms of leisure. They live it up here. They produce wealth and they enjoy wealth.”