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Depending where you look, island farmhouses and houses of character can be surprisingly affordable. For example, small stone farmhouses with flat roofs and inner courtyards on Gozo go for $125,000. That’s a converted farmhouse, by the way—not a heap of rubble. .
English spoken here You’ll experience no language problems on these islands—everybody speaks English. Until 1964, the islands belonged to Britain, and old colonial trappings pop up everywhere. Across from Valletta’s Café Cordina, Queen Victoria’s statue gazes sternly upon shoppers thronging Triq Repubblic, the main street. Like the phone booths, mailboxes are bright scarlet. Tiny police stations—with scant crime, they’re not NYPD-sized—have the same blue lamps that hang outside British police stations. Even the Maltese flag carries a George Cross in its corner. King George VI awarded this prestigious military medal to the entire island for its bravery during World War II—the islanders came under continuous attack from German bombers for 154 days. And here’s something I really like: They drive on the correct side of the road—the left! Being a Brit myself, I never have learned to drive on the other side. More than 20% gains in two years Most properties have increased in value by at least 20% over the last two years. That’s not unusual. For almost 40 years, the housing market has recorded average annual gains of around 8%. No great booms, but no busts either. Buy a property to let, and you can expect returns of 5% to 6.5% a year. Anybody can buy or rent a home on the islands...with certain restrictions. Let me explain the peculiarities of the market as it concerns foreigners. • Unless in specially designated
areas (more about these later), foreign buyers can only purchase one home
on the islands.
Why can’t I buy for $60,000 (or less)? Minimum prices for foreigners seem discriminatory, but it’s to protect the local market. Particularly on Gozo, apartments sometimes fetch less than $47,000. You’ll also see houses like this at a village called Fontana. For example, “close to amenities, an exquisitely finished townhouse with two bedrooms and the possibility of a a third bedroom, a spacious living room, a fitted kitchen/diner, a bathroom, and a spare toilet. Price: $76,000.” It’s annoying, but you cannot have it. Low living costs go hand-in-hand with low wages. Islanders fear being priced out of the market. I was told a bank clerk brings up a family on an annual salary of $12,000. Blue-collar jobs pay less. Will E.U. entry result in changes? Not immediately. And it isn’t certain Malta will even join the E.U. There will be a referendum on joining later in 2003. Current opinion polls show islanders split 50-50 over the question. The Guardian News Service recently interviewed Malta’s finance minister whose Nationalist Party favors membership. He stated that Malta is bargaining to continue to limit foreign property ownership to one home per person for a transitional period. Those opposed to E.U. entry are concerned. “Half of Sicily will move here in 2004, and Germans will buy all the nice homes,” they say. The real Malta First-time visitors, take note: Almost 370,000 people live on just 95 square miles of rocky territory. Leafing through brochures, you can be lulled into believing Malta is Paradise Island. Yes, the showpiece cities of Valletta and Mdina, the colorful luzzu boats in island harbors, and local festas with their processions and fireworks are as fascinating as the pictures promise. But don’t underestimate Malta’s density of population...it’s often hard judging where one town ends and another starts. That’s not to say that Malta is completely built over. In the island’s extreme north, south, and around the former Arab capital of Mdina, scores of allotment-sized green fields are girdled by tiny walls of golden limestone. You’ll even see the occasional terraced vineyard. But that’s not the view from Valleta, Sliema, or St. Julians. Almost half of Malta’s landscape is continuously urban. Yet, although Malta is effectively a city state, few apartment residences are high-rise. With their flat roofs, houses look almost biblical. However, towns do sprawl on...and on...and on. Such limited space suggests good investment opportunities. But although the British are enthusiastic property buyers (many live here all-year-round), that’s not to say Malta will suit you as a place to settle. I enjoy the island’s friendly, unpretentious feel...but I recently received negative comments from one American lady. Like her, you may be overwhelmed by how jam-packed parts of Malta are (though I mentioned this in previous articles). However I disagree that the islands are expensive...or that property prices will “blow you away.” Naturally, if you frequent five-star
hotel restaurants and you will find it pricy. But do you think most locals
hang out at the Hilton? On Gozo, a meal of pasta and shellfish in a waterfront
restaurant cost me $7...wine included. In central Valletta, you’ll find
rabbit casserole with salad and fries for $4.40. Delicious snack food such
as pasties stuffed with cheese and vegetables cost 35 cents apiece. Numerous
outlets serve $2.45 bacon, egg, and sausage breakfasts. And a half-pint
of local Hopleaf beer will set you back $1.20.
Make the best of the foreign limit Although foreigners can only buy houses valued at more than $120,000, this renovated house of character in Valletta for $113,000 isn’t off-limits. You could negotiate to include furniture to bring it up to minimum level. Available through Perry’s, it’s small with just one bedroom, but the St. Barbara Bastions location is special with views of the harbor and over to the Three Cities. And what about rentals? A monthly rent of $375 bags a furnished two-bedroom maisonette in Marsascala, a Maltese fishing village. A brand-new three-bedroom apartment in Msida, a harbor town next-door to Sliema, costs $475 per month. And a three-bedroom house of character in the Maltese citadel town of Mdina can be yours for $892 per month. Known as the “Silent City,” this was Malta’s capital in Arabic times. The balconies of the 400-year-old houses overlook the piazza. Few sandy beaches But I don’t want anybody to get false impressions, so let me spell out some truths. Although the crystal-clear sea is wonderful for diving, sandy beaches are few. Many roads need substantial upgrading. And cheap though fares are, buses are decrepit. Some are almost 50 years old. Pasta and passegiatas, yes, but there’s nothing like the level of stylishness encountered in many Italian cities. One realtor actually expressed concern that Americans might find Malta “too unsophisticated.” That said, it isn’t the boonies. You’ll find casinos, nightclubs, sailing clubs, and golf courses. Even Victoria, Gozo’s tiny capital, boasts two opera houses. The lost paradise of Gozo Green, fertile, and with plenty of open spaces, Gozo qualifies as a lost paradise. The contrast to Malta couldn’t be greater. Perched atop undulating hills, tranquil villages remain wrapped in the cloak of yesteryear. There are windmills...prehistoric temples...farmers riding horse-drawn traps...turkeys getting fattened for Christmas on flat-roofed houses… Church clocks are set at different times to confuse the devil. And from almost everywhere on the island, you can glimpse the sapphire Mediterranean. A 25-minute ferry ride from Malta, minuscule Gozo is only 26 square miles in size. Its inhabitants number less than 30,000. Not that it’s lacking in amenities. Locals say you can buy everything you want in Victoria, the island’s citadel-capped main town. “But I go to Malta for curtain material,” said one lady. “I don’t have to. It’s just that there’s more choice.” Island of love and honey The tourist office calls Gozo the island of love and honey. No arguments with that. Legend tells that Calypso, a seductive Greek nymphet, kept Ulysses in a cave here for seven years. Honey? From a distance, villages and golden churches look to be carved of honeycomb. And you don’t have to worry about views disappearing. Planning laws bar any new construction outside village boundaries. Furthermore, apartment residences can’t be higher than three storys in inland villages, and four storys on the coast. Agent Marie Grech says “demand has increased for all types of property” since my last visit. With locals reluctant to sell (passing down family property to children remains an important part of the culture), Gozitan farmhouses are definitely getting more scarce. She pointed out one large farmhouse
that sold 10 years ago for $143,000. Five years later, it changed hands
for $286,000. Now it’s valued at $524,000. However, less expensive farmhouses
are still available. One quaint western village is Gharb, not far from
beauty spots like the Azure Window and the Inland Sea. Here “il Mithna”
(the Mill) is $155,000. It has no pool, but its flowery central courtyard
is charming and the two double-sized bedrooms are both en-suite. Original
external stairs lead to a sun terrace.
Top-range options For investment potential, look where Maltese money goes. A $250,000 apartment might seem expensive to you, but locals invest in property rather than the stock market. Some of the most sought-after properties are in Sliema, Malta’s business and commercial center. Despite water on two sides, I don’t think it’s overly attractive but the Maltese like it. Back-street properties sell for prices locals can afford ($47,300 buys a completely furnished studio apartment), but sea views attract hefty premiums. On Sliema’s Tower Road seafront, two- and three-bedroom apartments average $205,000 to $312,000. Few properties come with acreage Be aware that few properties come with acreage. Anything with enough garden to install a swimming pool is considered large by Maltese standards. Villas of 1,500 to 2,000 square feet with pools go from $450,000 to upwards of $1 million. Gozitan villas cost a little less. Including a fitted kitchen and air-conditioning, $430,000 buys a four-bedroom villa with a pool, courtyards, a garage, and sea views. This 1,600-square-foot villa is at Ghasri village. Houses of character surface in Malta for $125,000 or less...though rarely at the coast. At this price, the island’s central towns are your best bet—places like Rabat of the early Christian catacombs, or Mosta with its huge domed church. Traditional farmhouse properties are becoming rare. On “the Big Island,” large converted farmhouses with pools often sell for over $800,000 Unless you’re buying for investment, I’d look to Gozo for these type of homes. Beside the Maltese seaside British visitors flock to Malta’s resort conurbation of Salina Bay / Qawra / Bugibba / St. Paul’s Bay. And not only for vacations—many buy here. Apartments for $75,000 to $100,000 are plentiful. It’s too built-up for me, but it might take your fancy. Moments away from Salina promenade, Salt’s have a three-bedroom maisonette with a patio for $76,000. Three miles along the promenade from Sliema is St. Julians, also a sizeable resort. Streets in old St. Julians, around Spinola Bay and also the new Portomaso development are worth considering, but neighboring Paceville is no place to live...not without earplugs anyway. This is Malta’s “vibrant” nightlife center. A realistic price for two-bedroom apartments in the better areas of St. Julians is $107,000. Just off Spinola Bay, Perrys have a brand-new three-bedroom apartment for $107,000. Malta’s south coast has a more open feel. Many harbor inlets have been used since the days of the Phoenicians and Romans. Flanked by traditional townhouses, two of Malta’s most attractive old fishing villages in this area are Marsaxlokk and Marsascala. On this visit, I didn’t see apartments here for an overseas buyer’s price minimum, but they do exist. Through Legend, a three-bedroom ground-floor maisonette of approximately 2,150 square feet was $107,000. (Maisonettes are houses with one family living on the upper level and another family below.) Go
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