Always try to invest in property within 100 kilometres of where you live, Re/Max Europe CEO Michael Polzler advised.
“That way if the washing machine breaks down, you can get into your car and go to sort it out!” he said.
“It is always tricky to invest abroad, particularly if you are looking for a property to rent out,” he added.
Mr Polzler is, in spite of the advice, very keen on property as an investment, believing that it encourages saving by those who would otherwise spend.
“Normal people in normal jobs don’t save. Property is safe and predictable and even if the prices fall at one stage, they always rebound. A mortgage is basically a ‘forced’ savings plan – whether you live there or rent it out. Apart from the fact that its value increases...
“If you rent, then your tenant is paying your mortgage for you as long as the rental covers maintenance, taxes and upkeep. It is easy to calculate the return you would get on a property.”
Property is a tangible asset, too, quoting from a Re/Max billboard overseas which warns people: ‘You can’t raise your family in a mutual fund...’
How many people really understand the stock market?
“And let us face it, how many people really understand the stock market?” he added.
He had some more advice for readers: use a real estate agent.
“At present only some 40 per cent do. It shows a real lack of awareness of what their role is – as well as, perhaps, bad past experiences with bad agents.
“It is not enough to put a photo of your property in their window! Whether you are buying or selling a property, you will need advice on a number of matters, from the value of the property to negotiating, and from fiscal matters to property management. And for foreigners – especially those new to Malta – then it is even more important.
“Many of those who try direct marketing end up going to agents as they realise that agents have the buyers.”
Mr Polzler was in Malta for a recruitment drive as Re/Max seeks to expand, with 45 agents needed for just one new office in Gżira – but many others are needed to join the existing workforce of 220 agents.
His position puts him in an advantageous position when it comes to an overview of the property market beyond Malta’s shores. “We think it is important to understand the economic development outside Malta as the island gets caught in the updraft,” he explained, noting that the US was back to pre-crisis levels, while even markets like Spain and Portugal had rebounded.