You worked hard to buy your home and now it's time it worked for you. Around the world, people are questioning the conventional wisdom behind owning their home after retirement and are opting to sell up and rent instead.
In Germany, 64% of homeowners now plan to rent in their later years, with the practice rising in popularity in the UK, Canada and the US too. It may seem like a big decision, especially if you plan to pass your estate on to your family, but today it makes more sense than ever. When it comes to finances, practicality, quality of life and personal freedom, renting a senior apartment offers distinct advantages.
It may seem counterintuitive, but the cost of home ownership can be higher than renting. In fact, renting works out cheaper in 98% of US cities with high populations of over-65s. This is because tax, agency fees, surveyors and solicitors can drive up costs for homeowners – even more so if you pass on a home as an inheritance.
Renting, meanwhile, comes with little administration, leaving you with a larger pension pot. Although monthly rental costs may seem higher, they don’t just cover the roof over your head, they pay for maintenance too. With predictable monthly costs, it’s much easier to budget for the long term. That leaves you free to plan retirement projects without interruptions from unexpected repair and maintenance tasks, saving you time and minimising stress.
Downsizing is often seen as a way of unlocking capital for travel and hobbies in your retirement, while preserving the security of home ownership. The reality is that it can be an awkward compromise. You’re still locked into a property, with less space, and have only some of your old home’s equity to spend on retirement. If you sell your house and opt to rent, you release your capital and you’re free to move when you wish, or to lock the door and go travelling without worrying about caring for an investment.
If the house had been earmarked as an inheritance, you could instead help your children buy today. 44% of Canadian millennials rely on parental support for property purchases, UK parents spent £6.5bn helping children onto the property ladder in 2016, while 37% of US millennials return to live with their parents to save for a deposit. By cashing out now you can ensure your children get on the property ladder, without sacrificing your lifestyle or losing money on inheritance tax.
If you're selling your pride and joy, you've already committed to a new lifestyle, so why not choose one that's comfortable, as well as practical? By opting to rent rather than buy, you can afford to look at luxury senior apartments that offer creature comforts.
Real estate developers are aware of the rise of retired renters and the changing way we view property. Consequently, the availability of luxury property with amenities, services and locations specifically tailored to the over-50s is increasing. As the competition for your custom builds, you’ll find not only that the spaces on offer improve, but you’re free to move between them as you choose.
Real Estate for Sale and To Let with Engel & Völkers
Engel & Völkers Sara Grech is the luxury real estate agent that specialises in exclusive properties for sale and to let in Malta. With more than 30 years’ experience, we are one of Malta’s most successful real estate agencies
Located in the heart of the Mediterranean Sea, Malta is a thriving cultural hub that has long been a popular destination amongst expatriates and tourists alike. Partnered with the real estate agency Engel & Völkers, finding a property for sale or rent in Malta is a breeze, and in no time at all, you'll have a spacious apartment with a view or a villa with numerous bedrooms to call your own.
Living and working in Malta
Home to more than 450,000 inhabitants, Malta is the smallest country to join the European Union in 2004. In 2008, it became part of the Eurozone. Though Malta is well-known as a popular tourist destination with plenty of recreational areas and historical monuments including nine UNESCO world heritage sites, it is not known for its luxury properties and real estate for sale and rent! Besides having first-class accommodation, Malta is home to numerous companies and industries ranging from banking and financing to construction, retail, and i-gaming. Working in Malta requires the proper permits, and those seeking employment are encouraged to find a suitable job before moving into their purchased or rented property.
A new residency scheme was launched in June 2013 which allows people to buy a high-value property and pay taxes in Malta to benefit from the residence permit. Under the new Global Residence Programme, the value of immovable property bought in Malta by foreigners has a minimum threshold of €275,000. However, when the property is in the South of Malta or on the sister island of Gozo, the minimum value is reduced to €220,000. This new scheme also allows persons eligible if they wished to rent a property and this has been lowered to €9,600 in Malta and €8750 in Gozo or the South of Malta. The minimum tax to be paid under this scheme is a minimum of €15,000 on income derived in Malta, further income arising in Malta shall be taxed at a flat rate of 35%.
Real estate and property for sale and rent in Malta
Malta has several Special Designated Areas that offer a wide variety of properties to buy or rent! Whether you are looking for a new luxury apartment with views of the Portomaso marina or an expansive villa situated in Santa Maria Estate, our team will help you find a property for rent or sale that suits your needs. From apartments with a view to villas with several, we have it all.
After you've purchased property
For such a small island, Malta is packed with amazing things to see and do. From visiting historic sites to relaxing on beautiful beaches. Visitors can take their pick of activities which will suit any mood or taste.
A selection below are the top destinations that any person should see when coming to Malta. These include Valletta; Mdina; Paceville; Blue Lagoon (Comino Island) and Gozo
Valletta recently voted the European Capital for Culture for 2018 is also a UNESCO World Heritage Site. Valletta is the hub of tourism in Malta and for good reason. It is full of historical significance, with the likes of St John’s Cathedral, forts, and museums and much more squeezed into a tiny area. As far as beautiful towns go with plenty to see, Valletta is up there with the best.
Mdina is known as the jewel in the crown of Malta and it is a fair assessment. The walled city is full of tiny alleys which you can wind your way through, stumbling across beautiful churches and museums along the way. Now effectively part of the town of Rabat, this definitely shouldn’t be left off your Maltese itinerary.
Malta has a reputation for being a destination for the older generation, but Paceville puts lie to that. This is where the youngsters come to drink and party and you can rely on having a good evening out here. It’s not just loud music for teenagers either; there are plenty of civilized bars and restaurants if you don’t want to rave into the early hours.
A beautiful area of clear blue water which is fantastic for swimming and is the perfect place for a day out at the beach. Arguably the best place for swimming in the whole Mediterranean, the Blue Lagoon is located on the island of Comino.
Just a 30-minute ferry trip away from Malta, Gozo is a beautiful, rural island which gives you a glimpse into what Malta looked like a few decades ago. Sleepy villages, rugged coastline, and beautiful countryside all make this a fantastic place to visit. But one of the main draws is the diving off the coast. Malta has been named as one of the best places to scuba dive in the world, and Gozo is one of the best spots to do it.
No matter where your interests lie, Malta has you covered; with Engel & Völkers Sara Grech by your side, your home in this beautiful part of the world is also covered. Contact us today to find out more about our villas, apartments and other properties for sale and rent!
For more information on Malta and our Real Estate Services please click on the following:
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