Purchase / Rent Returns

HI,

Is there some type of ratio/returns of what rent one could expect, on a property price ?

In South Africa, we average 8% per year of a property price as a return. So if I buy at R1,000,000, I'll expect between R6,000-R7,000.00 back on rent per month.

Is Malta similar ?

The market is in flux and huge demand atm, "asking" price on houses have gone up 25% in 2 years and rents have gone up more, you can extrapolate that properties are pretty good bets right this minute unless you buy them right now since buy prices are way inflated

However that said, there's around 40k housing units set to be finished building and on the market in the next 12 to 18 months. So you can imagine it might not be that great soon as so many properties get on the market.

Difficult question - and also in many ways academic as foreigners - even EU citizens - are limited in houses they may own and in what areas and how many.

There will always be a demand for rentals in the Prime areas of Malta. 8% is not impossible if you know the market but a 5% return is a more relistic target.

Thank you.