It has always been the case among millionaires; you’d see their two-digit roomed mansions in the news or the Internet. You hear about property and business acquisitions by a certain Western millionaire. Real estate, for good or for bad, had always reaped positive results. They may take some time to pay, but why are millionaires and nest-egg masters always going for the high road?

An Alternative (Sturdy) Investment

“Real estate is generally accepted as an alternative investment [by high-net-worth investors],” says Simon Jochlin, portfolio analytics associate at StennerZohny Investment Partners, part of Richardson GMP in Vancouver.

“It has the characteristics of an inflation hedge: yield, leverage and cap gains. It does well in upwardly trending markets, it pays you to wait during market corrections and typically it lags equities in market declines – it buys you time to assess the market.”

Is A More Logical Choice

“For example, if you own a rental condo, and the one across the hall goes on sale for 30 per cent less than you think it’s worth, you wouldn’t automatically put yours on the market and sell, too, because you think there is a problem. Indeed, you may actually buy the other condo,” said Senior Vice President and Portfolio Manager at Raymond James Ltd. Darren Coleman.

“And yet when a stock drops on the market, instead of thinking of buying more, most people automatically become fearful and think they should sell.”

Gives More Leverage

Coleman added that “Banks love to lend against it. Over time, this lets you own a property with a much smaller investment than if you had to buy all of it at once.”

Unknown to many, banks mean to acquire as much property as they can. But to consider a millionaire a financial “pushover” of sorts when it comes to acquiring assets (because they can pay), would be blasphemy. But if indeed a millionaire slips up on a property, the bank is more than willing enough to buy, improve and re-sell the property at a higher rate relevant to its immediate environment.

The changing perspectives from classic to modern in today’s younger generation, particularly in where individuals want to live and work, can change in 10 years. At such a time, Europe’s real estate will adapt and answer the change. Possible solutions can be economically and technologically-advanced, paving the way for advancements in real estate.

According to analysts, Generation Y, Millenials and Generation Z have used technology and the Internet since their childhood. The need for open information and sharing of goods and information is present.

Commercial property demands may fall in Europe in the next 10 years. However, there may be an increase in smaller households, affordable housing and easy access of public buildings.

About 60 per cent of people wish to live in urban areas compared to the 30 per cent who wish to live in the cities in the 1950s. It is possible technology and the developing use of Internet and information-sharing.

Green buildings may also crop up as a result. Plenty of Generation Y, Millenials and Generation Z have a strong sense of sustaining the planet. They have been taught to value the reduction, reusing of items and recycling during their younger years.

Malta’s economy is built on services, its construction industry and a small part of it made by its financial industry.

It has performed well for many years as it has improved its banking system to international standards and offer very amicable tax arrangements for foreign companies.

Read more about Malta’s progress with this infographic!

I have been investing in properties for so long, and I’ve heard some of my friends talk about certain properties and which ones will definitely bring good profit. These are some of the tips I’ve heard that may put you at high risk. At one point, I followed tip #3 and almost ended up losing a great amount of what I have.

1. Buying Residential Rental Properties
Properties that allow you to let may not be the best investment for you after all. While owning a condominium unit for rent or even a house or home can get you enough personal profits, you would have to deal with tax deductions and poor growth records. This is true for all residential rental properties, including buying shares or the entire hotel or apartment itself.

2. Investing in the United States
Britain has its own problems with the inflating value of properties in London, and yet many investors look to the United States as a good property investment market. If this is true, then the reason is unclear why many US citizens are not purchasing properties in their backyard. Be careful, you may be buying not its worth.

3. High Yields
One time, a friend of mine talked me into buying into properties with high yields. I was tempted because it did promise a great amount of cash flow. But as young as I was, I did not identify the main drivers of growth the properties had. Sure, the cash was good, but today, those properties are gathering dust and not building their growth worth, which makes it troublesome for me.

Now, you might have fulfilled your residency and property ownership rights requirements in Malta, and you’ve chosen rental properties as your business. As a landlord, you’re bound to fulfil certain responsibilities you have to your tenants namely the following.

1. House Keys
As the owner of the property, you have a master key to the house, but your tenants also need to have their own house keys. If you want them to treat the property as their primary home in Malta, you will need to provide them a set of keys.

2. Disruption
As a landlord having master keys, you are not allowed to disrupt you tenants. Authorities will also count it as a violation if you enter your property rented by a tenant without their permission even if you are using your master key.

3. Repairs and Renovations
As the landlord, only you have the right to repair and renovate the different parts of your home. If your tenant complains about your property’s water systems, HVAC or gas lines, you must address this as soon as possible. All renovations, including modifying the property, even just changing the paint is your sole right, not your tenants’.

4. Monthly Charge
It is also your responsibility as landlord to collect your dues per month by informing your tenants. You have the right to evict them from the house if they do not provide what is due.

5. Safety
As the landlord of your properties, you must ensure that your tenants are in no immediate danger in living in your properties. This includes at least the 500m area around the house is completely safe.

If you’re looking to purchase a property in Malta, it’s feasible to also start a business in the country. Malta is a country rich with oil and minerals. Limestone is a primary export product of the country. Existing industries in the country include tourism, tobacco, aviation, financial and information technology services. Here are a few things you need to know if you want to open good business in Malta.

1. Tourism
Malta is a Mediterranean country and is a great tourist spot for both western and eastern tourists. Malta’s tourism is quite in its prime and taking advantage of this height is important. Look for market gaps in their tourism. For example, if you see somebody selling memorabilia, you could also sell certain kinds of memorabilia, but remember that it must be unique and must fulfil a certain gap.

2. Trade Competition
Know your competition before you enter certain industries. For example, if you’re entering the cotton and tobacco industry, there are at least three or four factories already doing the same thing. You’ll need to look for cotton and tobacco farmers and it will be difficult if they are already taken. Rental properties for tourists are great ways; but you’ll need to get approved for residential property in Malta first.

3. Know the Public Offices for Trade and Commerce
You must consider securing your trademarks such as your company name, logo and colour scheme, your patents and copyrights. Look for the Commerce Department of Malta. You could choose to register your company on your own, or you could hire a company that could incorporate your company into the system quickly for a fee.

If you’ve been enticed by the quality of life and the luxuries that await you living in Malta, you need to know the process of how to purchase a property in Malta. There is no property tax in Malta because its citizens believe in buying property rather than renting it. Here are the first few things you need to know when purchasing Malta properties.

1. Negotiations AKA “Kovenju”
Malta calls the Preliminary Agreement between property buyer and seller as Kovenju, which is essentially an agreement that concludes that the buyer and seller made a transaction in a date they established. Upon signing the Kovenju, the property buyer will need to pay 1% provisional stamp duty, which would be counted in the full 5% due when the final deed and a final deposit amount (which is 10% is agreed upon. The documentation of the transaction would entail notary public services to verify the legal title and that the property is clear for selling, and that all requirements for buyers and sellers are fulfilled.

2. Identifying as a Primary or Secondary Home
Buyers can choose to nominate their properties as their foremost home in Malta or as a secondary property that could be used for business. For primary homes, a buyer must have residence in Malta for five years before they can declare the residence as a primary home. They can purchase the property, but not declare it as a primary home. Secondary homes need not the minimum residence requirement, but will need to pay for an Acquisition of Immovable Property permit to secure the property.

3. Income Tax
Malta has no property or wealth taxes, which makes it plausible to rent out the property if it is a secondary home. The property, if rented out, will provide a tax revenue of 15% from the property profits.

Credit unions are the first stop of any customer who finds their credit scores inadequate to get banks to finance them. However, credit unions only have limited funding, which is why they can only choose select customers they can finance. If you want to get an affordable financing from a credit union, take note of the following.

1. Credit Scores

You might have a low credit score, but most credit unions will not consider your credit score. Instead, they base it on your financial capability, employment stability and current financial capability. You will be asked for an interview with one representative.

2. Common Ground

As credit unions have smaller vaults than banks, they select customers who share a “common ground” with them in terms of profession, race, nationality, ethnicity or industry. Try to find your own common ground first before heading to apply for a mortgage or any financing with a credit union.

3. Limits

Credit unions can only provide you a certain amount when it comes to home, car or any type of financing. It might not promise that it can pay for your item in full, but it can certainly promise you lower interest rates and flexible repayment options. You even have the option to pay for your refinancing with a small top-up amount with your regular repayments.

Looking to raise your home equity? You’re reading the right article! Home improvement is actually important before you sell your house or use it as collateral for your financing. Here are some good areas to start improving your home.

1. Waterworks

Your home’s water series and passages should be improved if you find leaks or troubles when turning on your faucets or showers. Repairing these can improve your home’s value by up a great notch. Most old homes that are resold usually have lower ratings because of poor water sourcing. Try to replace pipes and patch up waterworks with superior repairs before selling your home.

2. Insulation

An insulated house works great for anybody and it is the most inexpensive and easiest improvement you could do for your home. Soundproof your AV and living room, replace your windows with sliding ones that have glazed glasses. A good insulated house ensures maximum HVAC system output during the cold weather, saving the new owners much in electricity prices and making your house more expensive.

3. Kitchen

A good kitchen is one that has enough vents to send out the smoke or at least smother it while cooking. Replace any broken tiles. You don’t actually have to spend so much for replacing your tiles with fancy looking ones; all you need is some creativity. With a few principles of kitchen design and knowledge about tile composition and material, you could even attach these items yourself.

4. Bathrooms

Having two bathrooms in your house makes it more expensive, especially if the personal quarters is located on the top floors. Two bathrooms makes it convenient especially if there are more than five people living in the house.

House Sold

You might be planning to move out soon or sell business property to improve your home or business. If you’re having trouble finding buyers for your properties, you’ll need to take advantage of new technology and some services to ensure you sell your properties having a good, market-sellable price and profit. Here’s what you need to know.

1. The Internet

Online forums and retail websites feature property selling services and product listing. Aside from selling your usual products and services, you can also sell your properties using these websites. Interested people can contact you to look at your property and negotiate personally for the price.

2. Real Estate Agent

Real estate agents are normally the people you are looking for when selling your home. The agents can appraise your properties, tell you which areas and parts of the properties needs repairs and improvement and how you can raise the price of the property you’re selling. However, you will need to pay for their professional fee and they are to receive commission should they successfully your properties.

3. Industrial Communities

Most industrial communities have a network of property dealers. If you have an abandoned factory, assembly or production line, you can work with the property dealers to introduce your property to others related in the industry. You can earn more from selling your properties as industries look for quality and utility in most industrial properties.