Need good sound financial advice

Hi,

Could someone point me in the direction of a good financial advisor please?

I need to know if it is better invest a substantial amount of money on purchasing a property in Malta or leave the money in my property here in England and just rent over in Malta!  I need the pro's and con's on everything.

Also, is there still a law that you have to spend over £xxxx amount on purchasing a property now or has it changed?

Thanks

Amanda

A much recommended Maltese adviser on tax and residence is one John Huber, whose website is at www.johnhubermalta.com

Also I know of, but haven't tried, a UK accounting firm called Blevins Franks, who specialise in advising UK expats and have an office in Malta.  You can find them at www.blevinsfranks.com .  They might have an advantage in comparing the UK and the Maltese ends of things.  I'm not sure whether Mr Huber holds himself out as an adviser on UK tax.

There is also an investment/speculative angle on the future merits of owning real property in the UK, Malta, or anywhere else, which I'm not sure anyone knows the answer to!

The rule about owning/renting a property of a certain value is part of the Permanent Residence Scheme.  If you are UK (or other EU) citizens, and if you want to work in Malta, you should be thinking about "ordinary residence", which has no such rule.

Hope that helps.

Hi,

Thanks for your reply, we are looking a OR but i'm unsure of where everything is up to, i hear the laws changed in April so i neber know if i'm looking at out of date info! :(

Amanda x

Hi,

I don't see any pro's on buying property in Malta at the moment. You will be buying in at a high level as the prices in Malta have so far not gone down despite the over supply of finished,half-finished or just shell-form appartments. And yet still more concrete shells are going up all over the island.

If you come over just rent a nice furnished place for a reasonable rent and see for yourself and take your time to decide. I would keep my money in British property or in a decent bank if I where you -)))).

Which laws changed in April ?

Regards
Ricky

Hi Ricky,

I was talking to a recruitment agency a week a go and she was saying so many laws have changed in April so i need to double check everything.

Property does seem expensive in Malta as we would prefer a house rather than an apartment. However, i would also prefer to have my own things around me so it would have to be unfurnished, i guess it would be the better idea to rent out our property back home and pay tax and NI contributions until we settle in, rather than tie up our money straight away.  That way if my family cant settle we basically fly back!

I need to chat with other families that have gone through the teething stages i guess.  Hmmmm where to look now!

Thanks
Amanda x

Hi Amanda,

There are lots of posts on 'family' topics and cost of living in Malta. Just go back 6 or 12 months.

Think about 'unfurnished' as that really limits your options and increases the costs and makes you less flexible. There are not many unfurnished properties on the market ! We looked ourselves and found it difficult!

Regards
Ricky

Ricky's advice is spot on (as ever). I certianly wouldn't rush into buying property in Malta - it is SO different from the UK you really won't know if it's for you until you've lived here for a while - I'd say at least a year, get through a summer and a winter and get through all the beauracratic hassles etc first.

Tim

Hi Tim,

Thanks for you comment on my post -))

How are you doing in your new place ? Fancy getting together sometime soon before Easter or are you still too busy moving in.

Regards
Ricky

Hi. Depends what  you want from your financial adviser.
I suggest you choose someone independent  ie , not a bank  or a broker as they;ll surely suggest you invest it. And not a property agent  as they'll suggest you buy.

Maybe you could talk to a tax adviser  who is very well acquainted with the local market and British expats-  a good local one is John Huber

a financial advisor is different to a tax advisor

Definitely.
The snag is financial advisors are intermediaries keen on selling their own products or have a commission interest- well at least that's  been my experience of  so called 'financial advisors'

thats why you should use an independent FA who refunds all commission to you, and you pay them for their time

I think you need to do most of the groundwork yourself. Invariably you will run into tons of helpful persons, who are going to push their angle one way or the other. Opt to rent to see the market as the property market is in fairy land at the moment.

House price indices are based on asking prices,and not realised sales so it can be manipulated to the extreme, and the methodology ( :rolleyes: ) is suspect,

Buying property in Malta

One has to know: The laws are changed, therefore there are given permits which would not have been given two years before. Planning applications are not respected and therefore it might occur that one builds a house just opposite the property you bought, even if they have told you that this is a non-developmental zone, and therefore never a house would be built there.
MEPA backs the builders, even if they don't follow what they announced in their planning application and what MEPA allowed - so the house one builds opposite the one you purchased might be unfortunately higher than the plans allow and therefore destroy your views, there might be bigger washrooms on top of the house than the plans allow, washrooms which turn out to be penthouses - and worst: the mistakes the builder opposite your house has commited might be sanctioned by MEPA, retrospectively - 'considered as small alterations'. You are helpless.

I sure as hell wouldnt buy here...build quality is very variable as we have watched many go up over the last three years, the market is flooded with empty properties of all types and the prices are just plain silly.

rent first see if you like living here and be as selective as possible on your property as things, services and people change i.e what you thought was a lovely location/area may well turn out not to be after 6 months, neighbours change, noise levels change - you find out more when you live in an area for a longer period - but that doesnt stop you looking around for something better and believe me there is always something better......always. Just take your time and dont rush into anything. take a lot of useful advice from forums like this one from people who have made their mistakes (me included) and have learned it the hard way but they aint afraid to point you in the right direction....... but bottom line is its your decision.

Keep your cash in UK and your property too at least until you decide whether or not you want stay here and make your new life here...its not for everyone or rather it doesnt suit everyone...holidays are one thing living here is another.

For what it is worth, we moved to Spain nearly 8 years ago (along with our Son, his wife and daughter) and went throught the same pains you are currently considering... and the best thing we did was to RENT and to retain our respective properties in the UK by letting them out (we rented unfurnished and shipped our desired items out...and stored the rest). With the economic changes over the past few years, things became difficult in Spain and my son, wife (and now two daughters) decided to return to the UK... They had not suffered the Spanish housing slump, had their property to return to and had suffered no fiscal losses! In the meantime, I had the fortune to sell my Spanish business interests and this allowed the benefit of my wife finally returning to our UK property whilst also allowing us to rent a property here in Malta and to set up the new business operations here... best of both worlds but my bottom line is that I have no intention of investing in property here but will retain the UK bricks and mortar as being a safer investment plus if I have the flexibility of simply moving at the end of the rentalcontract should I not like the area... or indeed if I wanted to permenently return to the UK!

My advice is to get here and try it as a living place for 12 months before you decide anything major as it is as has been previously said... a very different place to live in than to holiday!...

But good luck whichever way you select.