Sell up in the UK or Keep your property?

A six %  (predicted ) rise in property prices per annum in the UK will be a better bet than either buying a Maltese property (don't even consider this option) or putting it in a bank!
Plus you will have the security of a back up plan if things in Malta don't go as you think.
Plus extra income if you rent out via an agent in the UK.
To me its a no brainer.

Terry

We're moving next year but plan to keep our flat in Brighton at least until the end of the fixed rate mortgage (2018). Mind you, the value does seem to have gone up about 10% every year, so it would seem bonkers to sell it.

Having said that, based on the above, I reckon by next year we could sell and buy a two bed appartment in Gozo and be mortgage free- at 35! That does sound tempting. Plus renting your property can come with a lot of baggage if you get bad tennants.

I still think we'll hold out until 2018, by which point we'll hopefully know how long term our move will be. If we don't see ourselves going back then I think the equity we will have built up will give us security in Gozo and maybe open doors for the plans we have.

Good Luck with the move Pig Ear.

We also have another small property on a long term let. Our plan now is to sell our residence (if we can) and pay off the mortgage on rental (we've had same tenants for a long time and I hope they are in for a long long let).. We plan to use the rental income to pay into a pension.

To be honest just having the one rental to worry about back in the UK is enough. I suppose, because the price we are marketing our main residence at doesn't cover all the money we've spent on the place I was getting greedy. I saw a potential opportunity to PERHAPS see a significant rise in property prices in the medium term. However when assessing the risks involved  - and the fact that we have enough on our plates moving to Malta and setting up a business. I don't think I have the appetite (and know my wife doesn't - I have been told)! 

tearnet wrote:

A six %  (predicted ) rise in property prices per annum in the UK will be a better bet than either buying a Maltese property (don't even consider this option) or putting it in a bank!
Plus you will have the security of a back up plan if things in Malta don't go as you think.
Plus extra income if you rent out via an agent in the UK.
To me its a no brainer.

Terry

Hi Terry, yes  - thanks  - we do have a back up plan in the form of a small rental we are keeping. The plus side of selling up our main residence is it will help pay off the mortgage on the rental. Thus providing either an income or funds to pay in to a pension (depending on how things go in Malta).

It is theoretically possible for us to keep both but the risk is much greater. The ultimate reward would be nice (almost enough rental income to pay our way in Malta) but the path to attaining that reward is a bit too long and precarious for me at the moment. (I have a funny feeling I might regret the decision to sell in about 5 years time, but Hey!)

I presume that "don't even consider this option" means that renting is best in Malta (as rent does seem very low)?

Hi, why not buy property in Malta???
Thanks Stacey

tearnet wrote:

A six %  (predicted ) rise in property prices per annum in the UK will be a better bet than either buying a Maltese property (don't even consider this option) or putting it in a bank!

if the 6% turns out to be true - and even if it turns out correct,there can be a massive difference in price changes in different parts of the country.

Another aspect is what else are you invested in ? shares etc ?

The BoE has made it clear that it considers there is a property price bubble in London, and much of SE England. Dont be surprised to see moves to try and deflate that bubble.

All of which helps ease my mind in following our original plan 

Stacey1abbott wrote:

Hi, why not buy property in Malta???
Thanks Stacey

We are lucky in that we have an apartment that will be available for use that belongs to my Mother in Law. At least for a period of time in which to discover if the Maltese life is for us. Which I have little doubt it will be!

Hi, we would have to sell has want to clear mortgage and any other debts but would be thinking of buying over there when we are sure of the area we want to live?
So what's the best thing to do with our funds?

Thanks

My views on the Maltese property market are that with thousands of property's for sale and more still being built it is not the place to buy.
Very poor build quality and the fact that ( nearly) everyone moves at least once before they settle means that renting is the only way to retain some options if you find that you don't like the area or Malta!

Terry

Thanks Terry

Stacey1abbott wrote:

Hi, we would have to sell has want to clear mortgage and any other debts but would be thinking of buying over there when we are sure of the area we want to live?
So what's the best thing to do with our funds?

Thanks

Hi Stacey.....I agree with Terry, and I'm sure the majority of people who have made the move. The property market is so flooded it is embarrassing - what has happened is a generation has 'passed on' and their large 'historic' houses have been handed down to the youth who have tore them down and made flats out of them - the problem is, is that everyone has done this thinking that they are the ones to make a 'fast buck'. The build quality, as Terry says, is very suspect and as a measure for you - even Rose (a Maltese National) and I will not be buying when we move permanently over there.

Renting our property in England is the way ahead - 'no brainer' as someone has already said. Regardless of potential pitfalls it will produce regular income for us, will remain an investment and will secure funds for our retirement (where ever we may be). Someone mentioned 'bad tennants' - well that's the risk and that's why you pay them 15% management fees to sort it out.

As for MovingToThe Med, It's great that you are very ambitions and solid in your decisions, however, think long and hard about the decision to burn your housing boat - for example what would you do if something happened to your 'long standing renters'?

Only opinions here, however, include all options however distasteful they may be.

Mike

bottom line things change here and sometimes the changes happen slowly but surely - they do change.. so best to be very very careful at first.. so give it  couple of years to be sure its really where you want to be - what others have said I agree with  - we have been here 6 years and we've seen lots of changes and its enough for us to know now its not our final resting place and as such we are pleased we made the renting only decision..... the build quality is dreadful - the guarantees are non existent the workmanship is crap and the prices are ridiculous.. and if you want to move quickly - its almost impossible  - allow 1- 3 years to find a buyer.

plus, when you buy a property, you have expenses of around 7% of the purchase price

Stacey1abbott wrote:

Hi, we would have to sell has want to clear mortgage and any other debts but would be thinking of buying over there when we are sure of the area we want to live?
So what's the best thing to do with our funds?

Thanks

I've had advice from several people on the forum not to buy property in Malta. I'm presuming this is because of the glut of property available which I imagine affects property prices. My Mother in Law (MiL) bought the aforementioned apartment about 13 years ago and now thinks it is worth around half what she paid for it.

Renting it seems is the way to go with very low rates available following negotiation. For example MiL is taking out a 5 year lease of a large ground floor 2 bed apartment a short walk from the beach (St Thomas Bay) for 250 Euro pm.

We are renting out our house in the UK & renting in Malta. If we decide we want to go back home we still have our house & it is security for us too so we can sell it if need be in the coming years...

FlamingGalah! wrote:

We are renting out our house in the UK & renting in Malta. If we decide we want to go back home we still have our house & it is security for us too so we can sell it if need be in the coming years...

Yes, we are keeping a base in the UK that we already have rented out. Our main residence has been on the market since Thursday last week, has had several viewings (with more booked) and one couple are coming back for a second viewing in a couple of hours. Fingers Crossed for an easy sell!

Now just need to sell the businesses!! 

We're moving over next month and renting our Uk house. Safest option until we know more about Malta. Holding on to UK property for a year or two as hopefully it will increase in value!!

We have kept a base in UK as I think it is a safer option and  an insurance plan. Houses seem to sell easier in UK than here and overall increase in value more than here.
We only have a small house which we are hoping to rent in UK.

What business are you starting in Malta?

I haven't posted for a while but seem to be having problems with both "reply" and in not having the "quote" option show.

Anyway, quick update:  after a promising start and multiple viewings on our UK main residence we have not had any offers and there are no more viewings lined up. Boo hoo.

Oh well, it was asking a lot to sell up so quick and there is another Bank Holiday weekend coming up this weekend, so fingers are still crossed.

In answer to terryanne21, if your question was directed to me   - we will be looking to provide pet services as we have a huge amount of experience in this field and more particularly,  grooming services. Maria, my other half is highly qualified and experienced in the field and also teaches the subject at a local Land College to City & Guilds level 3. She may also be providing further training in a soon to be launched International Qualification that she is in discussions about that was announced at Master Groom (in the UK) this last weekend.

Not sure how we'll get on, but we do know our living expenses will be a lot lower and we hope that we won't have to work all the hours there are once in Malta (as we seem to in the UK, but's it's nice to be loved!)

Are you thinking of taking the plunge into the Malta and starting a business? Id so, what would you do?

Hi we have kept our property in the UK and the income from renting it covers more than our mortgage and our rent here and of course they pay council tax etc on it too. We decided to keep our property in the UK as prices are rising in the area we live in and although our house would sell for a fantastic price we would also have to pay high prices if we returned in the near future. We were also advised not to buy here and as we could move at any time with my husbands work we could not take the risk of having a property that would not sell due to the vast amount on the market. So far renting our property in the Uk and renting here seems to be working well. We have already moved twice so thankfully we did not buy as we thought we had found ideal properties but due to noisy neighbours and barking dogs we moved. You can't do this if you buy

Thats marvelous,  to cover both mortgage and rent! Result 
Interested to read about your reasons for moving. We live in a very quiet village in the UK and appreciate it will be very different once we get to Marsascala. I hope we soon get used to noise of neighbours and that OUR dog doesn't bark too much!

Hi,
I'm new here, been viewing the forum since August last year. My wife and I had two trips to Malta last year and have decided to move there also.

For us, the best option is renting our house. We have a low mortgage with good rental prices in the area. This will cover not only the mortgage, but rental and most bills in Malta, which is a blessing. I'm currently doing renovations on the house and gardens prior to putting it on the rental market. We've rented our home out before, using an agent, it was hassle free for the most part. A good tenant is a must though, if you can hold off until you find one.

Our biggest concern is finding work. Although seasonal work is easy to find, and my wife and I have lots of bar/restaurant experience (we had two business in this field), I personally, am looking to either make a good career with my profession (I'm a 3D artist, for games in the past, but now specializing in architectural visualization), or to take the plunge and start an interior design business. I have a lot of experience in this field also.

We intend to rent in Malta for at least 2 years to try and make things happen for us. Our friends like to tell us we just had a 'honeymoon period' with our holidays in Malta last year. But for us, it was much more; having the sea and sun in our lives is very important to us, for body and mind.

The pet grooming service sounds very interesting. Have you looked into the potential market for this in Malta?

drael wrote:

The pet grooming service sounds very interesting. Have you looked into the potential market for this in Malta?

its a big growth market, both in terms of demand and supply, but a good area to setup in if you can get a good name for yourself

A mobile pet grooming service would be the way to go, as the current one or two are always fully booked!
Get yourself a good sprinter van in the UK with aircon  and a small generator.
Terry

drael wrote:

The pet grooming service sounds very interesting. Have you looked into the potential market for this in Malta?

Hi drael, we've done research - Maria had a fact finding tour in February and talked with Ex-Pat business owners, pet shops and vets about the pet grooming trade. We are already extremely experienced in many aspects of the field but based on this research Maria is also taking additional training (she starts next week) in grooming for cats - as there does appear to be more of a market for cats in Malta.

I think GinG has already mentioned that there is a big market - and also that there are a lot of groomers already in Malta. However we live in a "saturated market" as it is in the UK (mainly the fault of Maria who also trains Dog Grooming at a local college)! We do very well because we know more than just providing pet services and grooming but have learnt how to run a business successfully. Of course it will take time in Malta and we will be leaving behind a very established client base - but there are lots of advantages - climate/food/lifestyle!

We also have a few contacts in Malta both Ex-pat and locals due to Mum in Law being a long term resident and our frequent trips to see her over the years.

So it's a risk, but a calculated (somewhat) one!

Hi Moving to The Med,

Sounds like you are getting things well planned out in advance. I wish you every success. I just had a quick look on your site, and noticed your Mum in law is in Marsaskala :-)

That is the first place in Malta we stayed at. We love it there and it's where we plan to move. St. Thomas Bay is lovely, and the food at Grabiels restaurant is fantastic (better than the near by tourist trap ones).

There's a great local bar there too, called awwista (lobster) down by the harbor. That have some wild late night 'lock ins'

Maybe we'll see each other there :-)

Best wishes,

David

Hi David,

Now that is GOOD local knowledge advice for us - we love St Thomas Bay too!

Liking the sound of awwista!!

The problem with our business is that Maria and I rarely get to go away together and when we visit Marsaskala it's usually separately and we don't get to sample the night life much.  - that's gonna change later in the year and it'll be great to share half a shandy with you sometime! 

Matt

Yeah, that would be nice

My wife and I do like to find those little places that are frequented by the locals rather than the usual tourist spots. We like to flavor and savor the way of life of countries we visit.

So, are your plans for September still on track? We don't have a concrete timeframe. My wife is in good employment now (I left work to renovate the our home), and we know that finding tennants could take days or months. To that end, we 'hope' to move this year, after summer ideally, but are happy to wait.

drael wrote:

So, are your plans for September still on track? We don't have a concrete timeframe. My wife is in good employment now (I left work to renovate the our home), and we know that finding tennants could take days or months. To that end, we 'hope' to move this year, after summer ideally, but are happy to wait.

Hi David, funny you should ask. Guess I'm feeling a little low about it at the moment - I've written a blog post last night on this very question.

http://movingtothemed.com/raring-go-go-go-feeling-tied/

Feel like we are doing lots of things to get going - almost feel like our current life is "treading water" while we wait to get on with our new lifestyle. Essentially while there are a few reasons (mentioned in the post) why we need to stick around at least until the end of July (for Maria it's completing Dog Grooming courses for her students, for me it's surgery)! The real thing holding us back is the lack of a buyer for our house. Eveything hangs on this.

We can't rent it out as the mortgage would not be covered (by a long way) and we need to get our money back out of it to forward our goals. It's frustrating.

Everyday it looks like more property is on the market and the initial interest in ours has gone and we've not had a viewing even since before Easter.

Still, in the scheme of things it isn't long and we will get there. Like you we want to move in September/October (maybe taking a few weeks to drive over). The climate in Malta is great then and it'll give us maximum time to acclimatise for the Maltese summer (I've been in August, it's seriously hot!)

Good luck with your renovations and tenant seeking 

drael wrote:

So, are your plans for September still on track? We don't have a concrete timeframe. My wife is in good employment now (I left work to renovate the our home), and we know that finding tennants could take days or months. To that end, we 'hope' to move this year, after summer ideally, but are happy to wait.

Hi David, funny you should ask. Guess I'm feeling a little low about it at the moment - I've written a blog post last night on this very question.

Raring to Go Go Go!

Feel like we are doing lots of things to get going - almost feel like our current life is "treading water" while we wait to get on with our new lifestyle. Essentially while there are a few reasons (mentioned in the post) why we need to stick around at least until the end of July (for Maria it's completing Dog Grooming courses for her students, for me it's surgery)! The real thing holding us back is the lack of a buyer for our house. Eveything hangs on this.

We can't rent it out as the mortgage would not be covered (by a long way) and we need to get our money back out of it to forward our goals. It's frustrating.

Everyday it looks like more property is on the market and the initial interest in ours has gone and we've not had a viewing even since before Easter.

Still, in the scheme of things it isn't long and we will get there. Like you we want to move in September/October (maybe taking a few weeks to drive over). The climate in Malta is great then and it'll give us maximum time to acclimatise for the Maltese summer (I've been in August, it's seriously hot!)

Good luck with your renovations and tenant seeking 

I read your blog post.

I completely understand how you are feeling when you say life seems to be 'treading water'.

I am also selling almost all our un-needed belongings, and our home is little more than an empty shell now. It feels weird. We know we'll be living like this for some months to come yet. Once the renovations are complete, I will keep myself busy making business plans for our proposed interior design company. But still, we also can feel down. My wife says it feels like our life 'is on hold'.

I have concerns regarding financially being able to support us  and not even knowing if our business will succeed. However, we are both very positive people and have proved successful at most things we put our hearts into.

The 'energy' of living in Malta can only help feed and boost that positive mindset, so all in all, I'm pretty optimistic.

I hope you'll soon find a buyer. It's a shame you can't rent it. Is it a suitable property and in the right location for a student let? (ie: a large enough house that you could split the rooms up, to gain more rental income?).

Sorry if I derailed the thread a bit by going off topic :-)
Best wishes,

David