Anyone have any thoughts on the property market in Malta? I would like to buy somewhere hot with a decent holiday let yield. Not too sure about Spain as it is somewhat overpriced. Any info would be great.

Malta is also a place that greatly interests me. I used to go there for family holidays and I love the place and the people, although I haven't been there for 30-odd years. The impression I get is that prices are quite high because of the lack of space and that the east coats around Valleta up to Mellieha is all pretty built up now. I'm rather taken by the Houses of Character, so-called, that we sometimes see on A Place in the Sun. There are some rules about what you can offer to let, I believe, but a lot has had to chance since they joined the EU. As a place to set up a company it has very interesting tax laws that give very favourable terms, including repayment to shareholders of tax paid by the company. I'd love to learn more about it as a property investment location.

Hi Tom, Do not know anything on Malta, but if you are considering buying somewhere hot with a decent holiday let yield, I would suggest considering Cyprus as well. This site has a considerable amount of quality information on Cyprus. Have a look on the link below: http: / /www .propertysecrets .net /product _viewer /cyprus _market _and _forecast _report /11 .html Regards, Erico

Cheers Erico Rocha. I have considered Cyprus too. Would you say that Cyprus is oversupplied with properties? I did read this somewhere. Also could you recommend the best towns there for investment?

I've always wondered why people consider Cyprus better than Malta. Cyprus has construction sites everywhere you can see, while Malta is pretty unspoiled, and quite picturesque, with much less new build stuff. Also, property prices (including for new builds) are often actually lower in Malta, although it's very similar than Cyprus prices (comparing similar properties and areas). English is widely spoken in Malta, lots of expats live there as well, legal system is very straight-forward, climate is good, and it has some of world's oldest civilization/monuments. I'm not sure about rental returns, but can imagine it's much easier to let in Malta (at least in the main tourist areas) than in Cyprus where competition is/will be huge. I'm not looking to buy in either (although couldn't keep myself from looking at prices etc during my 10 day holiday) but, if I was, Malta would definitely win over Cyprus.

One of the huge questions for Cyprus has to be flight accesibility - currently restricted and over priced. Ryannair have helped property prices increase in Malta with the introduction of flights - I have written to both EasyJet and Ryannair to beg for flights to Larnaca to help my investment there, no harm in anyone who has property there doing the same I would say...

One of the interesting things about Malta is the fledgling off-shore insurance market there. I know of a couple of international firms setting up captive insurance operations there and this wouldn't have to take off in a very big way to have quite a considerable impact on local property values and prospects for letting. Definitely somewhere I need to explore. Huw

Bear in mind too Malta's decision to set up its stall as a tax haven within the EU. There are some very favourable terms there.

One of the big prospects in Cyprus, which doesn't apply to Malta, is the likelihood that Turkey needs to sort out its part in Northern Cyprus before it can be considered for EU membership. When this happens, the argument goes, there will be a big property price boost.

Precisely the reason why insurance captives are moving in.