The case for an alternative property investment
Are you planning on buying a second home to generate a passive income, have a holiday home or buying a property as an investment?
Malta’s property market makes for an extremely positive alternative to investing in a South African property
According to The Global Property report from 2008 to 2018, real house prices in South Africa -i.e., after inflation – dropped by about 4.8%.
The FNB Property Barometer, released in June 2019, showed that property prices increased by only 3.3% year-on-year in May, while South Africa’s latest consumer price index (CPI) inflation stood at 4.5%.This means property prices declined by 1.2% in real terms.
South Africa’s economy has had the biggest quarterly fall since Q1 2009, in the first quarter of 2019, contracting by 3.2%, , according to the Statistics South Africa. The South African Reserve Bank (SARB), the country’s central bank, has slashed its 2019 growth projection to 1%, from its earlier estimate of 1.3%. In 2018, the economy grew by a minuscule 0.8%, following a 1.3% expansion in 2017
Malta in comparison came out on top, with home prices shooting up by an eye-watering 17% in the past 12 month, this according to Bloomberg. The growth is attributed to the island’s booming economy, the short supply of property and an emerging tech industry, sparked by the country’s decision to regulate blockchain technology
In The European Commission’s twice yearly publication, a full set of macroeconomic forecasts are presented for the EU and its Member States. Malta’s economy grew by 6.7% in 2018, making it the fifth year in a row in which real GDP has grown by over 5%. Malta’s economy continues to grow at a predicted rate for 2019 at 5,3% with an inflation rate of 1.8%.
Real Capital Analytics (RCA) ,has new research showing how South African-based investors are putting more money in foreign markets than ever before.
Maybe now is a good time to “hedge your bets”, diversify your portfolio, or have a plan B investment.