by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Expat Investor : December 2008
PROPERTY INVESTMENT Maltese property continues its surge developments found in London, New York or Hong Kong.” As a part of Pender Ville’s master plan, there will also be a new commercial and financial centre next door, called The Exchange, which will be one of Malta’s largest. Phase 1 of Pendergardens will comprise 150 apartments, consisting of studios and two- and three-bedroom apartments accommodated in five buildings from seven to nine storeys high. These light and airy apartments range in size from 570 sq ft for studios, up to 2,238 sq ft for some of the three-bedroom apartments and 2,648 sq ft for some of the largest penthouses. Each apartment building will Maltese developer Pender Ville has launched the first phase of Pendergardens, its residential development in St Julian’s, Malta. When completed, Pendergardens will provide a new residential district for St Julian’s, an attractive and popular resort town close to Malta’s capital, Valetta. At the development’s heart will be a landscaped piazza surrounded by nine low-rise buildings and two towers. Designed by Bencini and Associates, Pendergardens will offer what the developer describes as “vibrant modern design of a quality rivalling the best Proximity premium to a good state school overlook the main piazza, with some having apartments on the upper floors, benefiting from sweeping views. All the apartments will have access to generous balcony or terrace space. Penthouses offer the option of an outdoor plunge pool, perfect for parties during the warm evenings. Michael De Maria, Pender Ville sales and marketing manager, says, “Malta, with its economic stability, quality of life and value, offers a superb environment for investors and holiday or retirement home seekers. “Pendergardens provides exceptional high-quality specification, spacious modern GCSE successes boost local property prices Research conducted on behalf of Halifax,by Cranfield School of Management, shows that buyers in England pay more for a property in an area close to a top state school.The research reveals that higher performing schools, that is schools with a better pass rate in terms of the percentage of students gaining five or more GCSE passes in grades A* –C, boost local property prices by up to 3% for every 10% improvement in GCSE pass rates. Seven major cities Academics studied the impact of state funded secondary school performance on house prices in seven major cities in England – Greater London, Birmingham, Bristol, Leeds, Greater Manchester, Liverpool and Newcastle. Those cities where homebuyers pay the highest premium for ‘good’ school performance are those where the average pass rates in GCSE examinations are lowest. For example, over the period studied (2001–2007), Bristol had a lower pass rate than the other cities and secured the highest premium. This implies that in English cities where the supply of good schools is lower, the price premium that must be paid for a ‘good’ school is higher. An Illustration A property in a city such as Bristol, where a state school achieved a pass rate of 80%, would therefore be worth – all other things being equal – an additional 12% compared to a house that was in an area in the same city close to a school that had a 40% pass rate. Residential properties which are located close to high performing state funded secondary schools attract a price premium. This result was found in all of the seven major English cities/conurbations examined. The extent of the price premium varies between cities: ? In Greater London, Liverpool, Birmingham and Newcastle a 10% point differential in GCSE performance produces a 1% point differential in residential properties located close to the high performing school. ? In Greater Manchester and Leeds a 10% point differential in GCSE performance produces a 2% point increase in residential properties located close to the high performing school. ? In Bristol a 10% point differential in GCSE performance by a specific school produces a 3% point increase in residential properties located close to the high performing school. ? Those cities attracting the highest price premia for ‘good’ school performance are where the average pass rate in GCSE examinations is the lowest. Commenting on the research findings Martin Ellis, Halifax Chief Economist, says, “The research is significant in that it confirms the long held suspicion that living next to a good school adds pounds to the value to your home. In a time of falling house prices it’s important to be aware of the many factors affecting property value.” Fast Facts 10422 Free guides to equity release design and value. It, together with The Exchange, will create a property destination in its own right, attracting people for leisure and work, adding to the development’s appeal. “The property market has been boosted by Malta joining the euro at the beginning of this year. Furthermore, structural problems with other markets, which have traditionally been competitors, have increased interest in the country, particularly from British buyers.” A major attraction of Malta to British buyers is that English is widely spoken and all contracts can be written in English. The country is also a member of the EU, allowing residents from the UK and other EU states to live in the country without restriction. Pendergardens and The Exchange have also been awarded Special Designated Area Status, freeing purchasers from having to apply for an Acquisition of Immovable Property (AIP) Permit from the Ministry of Finance. Prices for apartments available at Pendergardens start at £68,192 or €86,000 for a two-bedroom 1,109 sq ft apartment, £193,899 (€244,584) for a three-bedroom 1,647 sq ft apartment, and £738,633 (€931,749) for a three- bedroom 2,648 sq ft penthouse. Fast Facts 10421 As the UK heads towards a recession, stock markets are falling and dragging pension funds down with them. As a result, many homeowners of retirement age may be considering raising cash in other ways. Equity release is one way for homeowners to raise cash but the process can seem daunting, which is why Fairinvestment.co.uk says it has launched its own Guide to Equity Release to help those who are considering releasing equity in their homes. Explaining the ins and outs of equity release, the Fairinvestment.co.uk guide aims to answer common FAQs as well as offers detailed explanations of how equity release works, and highlights its advantages and disadvantages. Commenting on the guide, chartered financial planner at Fairinvestment.co.uk, Sharon Bratley says, “Equity release is a complicated area for most people to understand. There are various types available and people should be confident that they understand all aspects before going ahead.” Both Guide to Equity Release and Equity Release FAQs are available on Fairinvestment.co.uk and to download as easy to read PDFs. December 2008 ? EXPAT INVESTOR 23
January February 2009