Guide for First Time Buyers in Malta
Many people consider the decision to purchase property - one of the biggest decisions one will make. This is hardly surprising when you consider the responsibilities that come with this decision. One needs to be aware of the process of purchasing a property, the expenses and charges involved, and what methods would simplify their buying process - even more so when it’s the case when a first-time buyer is purchasing a property.
Confirm Your Budget
It is important to have a budget in mind before searching for first properties in Malta or Gozo. Several people have borrowed funds in order to finance their purchase. If this is the case, the bank is able to give you an indication of your borrowing limit based on your salary, factoring in other expenses you may already be committed to. Remember that this is only an indication so be sure to search for properties priced below this figure. Ask your specialised first-time buyer agent to show you properties below and above with space to negotiate to your threshold. It may be prudent to deduct costs of other items, such as furnishings, notary fees and so on so that you have a more accurate figure. It is recommended that you visit your local bank and confirm the amount the bank will be able to borrow you. If you are buying a property with your partner, you will be in a position to combine the joint income. Read this page for more specifics on home loans in Malta.
Property Needs, Wish List and Searching
Once you have a budget in mind, you can start hunting for a property. To simplify things, we would suggest you make a list of needs and a wish list and follow that up by going online and searching for your minimum requirements. You will eventually narrow this down to properties you’d like to view. The next step would be to contact the RE/MAX Malta real estate agent and schedule viewings for the same or next day. Several people opt to work with a real estate agent for the simple reason that this scheduling is undertaken by them. Aside from this, a real estate agent will accompany you on your visit to the properties and will have the market knowledge when the time comes to haggling the price or negotiating any specific terms.
Make sure you mark the properties you like and remove the ones that didn’t meet your expectations. Ensure you thoroughly inspect the property – any defects or lack of maintenance may allow you to negotiate in property price. Along the way, you will start to understand what type of property you may achieve in purchasing and may start adding those items from your wish list to your search. You will start asking your self questions like “What if I were to purchase a property with heated floors? Would it break the bank? This scenario will be a trial and error until you find the compromise between your needs and wants. It is confirmed through a recent Real Estate Insights report in 2015 that buyers take on average of four months to find their property so if you fall within this category you will have found your first property in Malta before you know it.
Signing your First Promise of Sale
Once you have found your ideal property, you can make an offer. Check how much similar properties are selling for in the area before proposing a price. Should the vendor agree, remember that the agreement is - so far - verbal, and despite being given in good-faith, it is non-committal. Once you have agreed on a price, a date is set for signing of the Promise of Sale (“Konvenju”).
Drafted up by a notary, this is a contract between the buyer and seller where several terms and conditions are laid out in writing. The contract may be subject to several conditions; for example, the seller may need to finalise certain details or jobs in relation to the property; as the purchaser, you may wish to have the property evaluated by an architect for any structural defects and may only purchase the property should it be of sound structure. Other conditions could be related to the permit of the property or that you actually manage to secure financing for the property. In only certain cases may a promise of sale be extended provided that both parties agree.
The contract would also include a date for signing of Final Deed, and such date would serve as a deadline for both parties. For the purpose of the Promise of Sale, the notary represents the government and is impartial between both parties. Once the Promise of Sale has been signed, you will be asked to pay a deposit (usually 10%) to the seller, and a further 1% provisional stamp duty to the notary. A copy of the contract is then given to both you and the seller. The notary would then need a further 6 weeks to carry out searches on the property – verifying the legal title, ensuring there are no loans taken against said property, and that the vendor is able to sell the property.
Signing the Contract
Should all the conditions written in the Promise of Sale be satisfied, the parties then meet to sign the Final Deed. This would be read out by the notary and again signed by both parties. At this stage, you will need to pay all pending balances - including the remaining balance on the property, the remaining balance on stamp duty (presently only 5% above EUR 150, 000 up until end of Dec 2016) and 1% fees to the Notary Public. The contract is then registered at the Public registry, and the keys to the property are handed over to you – a proud home-owner. Your next headache is moving all your personal items to your home!
The process of property-hunting may take anything from one week to several months, and is dependent on your urgency to find a property. Should you be in a hurry, or are planning ahead of time it is important to bear in mind that property searches and signing of contracts take an average of three to six months’. Feel free to contact us so we can be part of your planning process.
Why Choose RE/MAX for Your First Property
At RE/MAX Malta, the first time buyer market is just one of the real estate markets that we have specialised real estate agents working with customers on a daily basis. Our know-how of the market, comprehensive database of properties and reach of twenty-two offices and over 250 estate agents located around the Malta and Gozo will surely be an asset to your property search.
Each office of ours has a number of fully qualified first-time buyer sales associates available to attend to your call. You will find that our associates are very professional and will not waste your time. We are proud to say that we do our utmost to listen to your every request and take the time to guide you through the process. Our associates are also assisted by state of the art technology which alerts them specific properties come available on our database that match your search criteria.
You may find our weekly updated list of properties for First time buyers useful or you may like to receive property update emails of properties that come through our database that match your criteria. If you have a chance, we also have some interesting articles that describe the actual experience of first time buyers in Malta on our blog.
€50,000 - €100,000
MUNXAR- Forming part of a prestigious development is this Level 3, three bedroom APARTMENT with backyard enjoying the open Lunzjata valley. The Andar complex is situated in the village outskirts between Victoria and Xlendi bay and this unit is being sold in shell form with optional attractive finish ...read more
ZABBAR- New on the market , part of a prestigious new development set in the best part of this quiet residential area. The layout of the property will comprise of a welcoming open plan kitchen/living/dining , 1 bedroom with en-suite) and main bathroom . Furthermore complimenting this property is a ...read more
MARSALFORN - Ground floor shell form APARTMENT situated in a very quiet area just off St. Mary's street yet only 5 minutes away from the promenade and the beach. The property will enjoy south facing country views from its living area and offers 3 bedrooms, 2 bathrooms plus a 1-car lockup garage. Com ...read more
FGURA - Bright and spacious APARTMENT, forming part of a small block of three units. Layout of this property consists of an open plan kitchen/living/dining upon entrance, bathroom and three bedrooms. Further complimenting this property is a balcony and a back terrace. Property is being sold semi-fi ...read more
FONTANA - This one bedroom apartment close to the center of Victoria is being sold fully furnished including a very spacious kitchen finished to high standards. A separate living room could be turned into a second bedroom. Great Value. ...read more
ZEJTUN - APARTMENT being part of a new and elegant block served with lift and ideally located on a very quiet residential street right on the outskirts of town. Accommodation comprises of a spacious open-plan kitchen/dining/living overlooking a front balcony, main bathroom, two bedrooms and a back ...read more
FGURA - APARTMENT being sold luxury finished, forming part of a new elegant block, ideally located close to all amenities. Accommodation is in the form of a sitting room, separate kitchen/dining, two double bedrooms, guest bathroom, front balcony and a back terrace. ...read more
PAOLA - New on the market is this two Penthouse situated in a quiet street near all amenities enjoying an open plan kitchen/living/dining room, a bathroom and both front and back balconies. Optional interconnecting garages available underneath the block. ...read more
PIETA - Fifth floor apartment forming part of a new block located in a central location. Consisting of a kitchen and a separate living/dining area complemented with a front balcony. One bedroom and a bathroom. Property to be sold on plan. ...read more
FGURA - APARTMENT being sold luxury finished, forming part of a new elegant block, ideally located close to all amenities. Accommodation is in the form of a sitting room, separate kitchen/dining, two double bedrooms, guest bathroom, a wide front terrace and a back terrace. ...read more
€100,001 - €200,000
GHAJNSIELEM- This small unconverted FARMHOUSE surrounded by 127 sqm of land is perfect to be developed into a small holiday home or pied-a-terre enjoying total peace and tranquility. ...read more
ZABBAR - Highly finished APARTMENT forming part of a new elegant block , located in the most sought after area of this village, comprising of an open-plan kitchen/living/dining on entrance, two double bedrooms, guest bathroom and a back terrace. ...read more
MELLIEHA - A two bedroom apartment fully furnished. On entrance one finds a hall way that leads to the kitchen/living/dining area with a balcony facing Ghadira bay and distance view of Gozo. on the right hand side of the hall way one finds the main bedroom, bathroom, guest toilet and the second bedr ...read more
Fgura. Situated in the heart of this boastful village is this larger than usual first floor ,fully furnished apartment in a block of only three, boasting with lots of natural light. The layout consists of a spacious open-plan kitchen/living/dining, a good sized bathroom and three double bedrooms, On ...read more
XAGHRA - A huge three bedroom Apartment, ideal for a permanent residence, located within walking distance to the sea and restaurants. Featuring generous rooms throughout, an entrance to an open plan kitchen/dining/lounge area leading to a front balcony, a wide corridor leading to the sleeping quarte ...read more
MARSA-Very well-kept townhouse enjoying a very spacious back garden. The layout consists of an entrance hall leading to an open-plan having a fitted kitchen and a living/dining area. Three/four bedrooms. A main bathroom and a spare toilet. A front balcony, roof and own airspace. Anyone looking for a ...read more
Zurrieq - Located on the outskirts of Zurrieq, is this brand new residential project just minutes away from the most desirable wied Babu and Blue Grotto. This project offers a selection of basement garages, ground floor maisonettes, 6 apartments and 2 penthouses. All units, excluding a maisonette (t ...read more
Paola- A first floor cosy apartment in a block of two situated in a quiet area and near all amities is being sold fully furnished. This property has three Bedrooms, Kitchen / living /dinning, bathroom, and a balcony along its side. Finishes are of gypsum walls, marble tilling except for two bedrooms ...read more
ZABBAR - Highly finished and very well planned second floor Maisonette situated in a new area. Stairway leading to its living quarters through a small hallway that leads to the large bright kitchen/living/dining with balcony. Through the corridor one finds three bedrooms (main with ensuite) and gu ...read more
An excellent example of a typical Paola town house still retaining original features. Property layout consists of a sitting area upon entrance, a living room, shower room and back yard on ground floor level. On first floor, one finds a bedroom, kitchen and a second shower room. A roof terrace and se ...read more
€200,001 - €300,000
ZEJTUN - Located on a quiet street yet close to amenities is this very well kept, bright and airy first floor Solitary Maisonette. Layout of this property consists of a welcoming entrance hall leading to one flight of stairs. Once you're on the first floor, you are immediately welcomed by a formal s ...read more
Exceptional seafront first floor APARTMENT in this unique location of St Paul's Bay. Property comprises a combined kitchen, living and dining area room with front balcony, enjoying sea views over Xemxija Bay, a family bathroom, and 2 bedrooms - main with en-suite shower and views. This apartment is ...read more
Xewkija- Within walking distance to the square and its amenities, is this Town House spread on two storeys , in need of renovation consisting of a formal sitting room separate kitchen, dining room , study room, bathroom, two double bedrooms, another room on top and a large terrace that can be buil ...read more