The economy today is different to that from a few years ago. As it continues to change, our budgets also change. Taking out an insurance to cover the contents of your household may seem to be an extra payment we think we can do without, but we shouldn’t kid ourselves – home insurance should never be considered optional.

The average household continues to see bills rising, a trend that is showing no sign of slowing. Gas and electricity tariffs are also on the increase. A household’s fuel bill has increased by a good percentage over the past few years while food prices continue to spiral. On top of all these increases, a home insurance (more…)

It’s normal to be excited when buying real estate in Malta as this is not something you do every day. One may very well get carried away and purchase a property and realise later that they have overlooked the fact that the property had latent damages or hidden defects not visible to the layman’s eye, which could, a year down the line, turn your life completely upside down.

What you thought might have been a house you’d like to settle in for a substantial number of years turns out to be a property you may want to get rid of just after a few years. And what’s the cause for such a decision?

On purchasing a property, many – especially if they are first time buyers in Malta - fail to anticipate certain little defects that may turn out (more…)

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 first property being purchased.

It is important to have a budget in mind before searching for properties. 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. It may be prudent to deduct costs of other items, such as furnis (more…)

In this day and age, many will agree that owning a property in Malta is the best investment.  It’s not always easy to take that giant leap to sell your first home and purchase another in order to improve on what you have.

The first thing highly likely to come to one’s mind is shooting up the price and increasing the property’s value in order to “save” having to take out another loan on top of an existing one.

It definitely doesn’t work that way. In fact, by doing so, you will find that you will be losing out big time in the long run. And I could safely state this from an experience I’ve lived myself.

Imagine this. You price your malta property at €100,000 but in actual fact your property is worth much less according to current market evaluations. You list your property with a string of malta real estate agents and every now and again you may get a knock at your door or a call to have your property viewed. (more…)

It’s always exciting when one decides they would like to purchase property in Malta, however it seems that this decision comes hand-in-hand with a bit of dread. It is a well-known fact that Malta has several properties waiting to be sold and it may seem that finding your dream home may be a intimidating experience. However, this can only be said for those who do not have the know-how when it comes to searching for the right property, but this article will help you gain that knowledge.

As with all other items, you need to have a budget in mind before you ‘shop’ for a Malta property – and this should be the first thing you so (more…)

The range of first time buyers in Malta is much wider than I had first thought it out to be. It comprises couples who have decided to set up a family, and are seeking a place where to live, right down to the regular long established families who feel that the time has come to make the leap from renting a place to owning a property. 

However Ms Jane Caruana, who has just acquired her very first property in Malta, and has kindly agreed to talk to me about her experiences, comes from yet another category. This is how she explained her reasons for her first ever home purchase.

“I had been saving money for a number of working years. I am now 30 years of age, and I feel it is the right time to move out of my parents’ house and invest in a property of my own,” she told me, adding, perhaps in order to make her message clearer, “You may say it was the result of a combination involving a lifestyle necessity, coupled with the need to make some kind of solid investment.”

I then asked Jane whether she had any preferences regarding Read rest of the story

So you’ve been thinking of buying a property in Malta? And you’re kind of eyeing the local papers and making a note of all the properties with a Sale notice attached to their front window? Whilst you can traipse around and do it solo, there is a lot to be said for getting an Malta real estate agent on board to help you in the hunt. First things first – get a seriousagency and make sure you feel you can communicate with the agent assigned to you.

The agency fee is paid by the seller so the buyer incurs no costs. However you should never take advantage of the estate agent for the simple reason that you may end up the loser if you go it alone or ignore precious advice.

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Sliema – 40 sqm studio APARTMENT served with lift and situated close to the seafront. Being sold partly furnished and including a fitted kitchen, separate bathroom and small balcony. Freehold.  Ideal as a rental (more…)

Bank of Valletta have come up with an intriguing new package for prospective home loan customers which targets the first time buyers in Malta but also aims to strengthen the refurbishment and second property market. The bank is also offering some very attractive discounts on its own fees as follows: (more…)

So you have just bought a new apartment in Malta and whilst it’s got the right number of bedrooms and bathrooms, it does not actually boast of grand open-air space. In fact that small back terrace seems rather cramped, bare and miserable. You’re luckier than your neighbour, next floor up, whose only open-air access is a minimalist balcony, just one-foot deep. So you feel blessed in that respect. (more…)

HAMRUN – Excellently finished and furnished three bedroom APARTMENT in a brand new residential complex. Accommodation includes a large kitchen/sitting/living, three double bedrooms, bathroom and ensuite, and balcony. The apartment is set in a luxury residential block with a huge central courtyard. Definitely excellent value for money, especially as a rental investment.

View full details of Exclusive apartment for sale in Hamrun

In recent years reports and statistics have revealed a considerable increase in the number of people investing in rental properties and therefore becoming new landlords. Indeed, for some, buy to let Malta property has become an alternative to other forms of investment.

Unlike banks and investment instruments such as bonds, property gives a double return: income in the form of rent plus capital growth, and in some areas capital growth has been quite outstanding. The income (initial yield) should be enough to cover your mortgage payments, with a margin for safety built-in.  At first glance Malta property is a foolproof way to wealth and security: once the place is successfully let all the landlord has to do is sit back and watch the money roll in! Well, it’s not quite as easy as that, but a properly managed property investment can be a very good way of increasing your wealth. There are pit falls though and if the management side is neglected you could have real problems. 

Letting is a relatively complex area which requires a fair amount of knowledge. The best option would therefore be to use a real estate agent in Malta to do your lettings and thus minimise the risks related to market knowledge and maximum promotion.  For the tenant, renting has become a convenient alternative to buying and for some it has become the only option:

• Job mobility, job insecurity and short-term work contracts mean that many are now wary about becoming locked-in to owning a property.
• Co-habitation prior to marriage again means that couples are often reluctant to become looked-in to a property and a large mortgage, which may be difficult to unravel if there is a split.
• Higher divorce rates and an ageing population, with people in general living longer, has increased demand for housing and particularly single person accommodation.
• In some high-priced areas first time buyers in Malta have been priced-out and renting has become the only option. 

For the landlord, whether it’s a side-line to an existing day job or a full-time occupation, buying to let a Malta property has become an alternative to other forms of savings and investment:

• Renting property in Malta has become more socially acceptable in Malta, though there is still a long way to go before we reach mainland European and US levels. 
• We have entered a more sympathetic legal climate for the landlord.
• Buy-to-Let mortgages have meant that property investment has become a real alternative to stocks & shares, with an added bit of satisfaction and excitement for those who take to it.
• Low interest rates offered by banks encourage people with some capital to look for better returns: property is generally a solid form of investment and rarely can you lose all your money, as you can with stocks and shares.
• The volatility of the stock markets have made some consider property and “landlording” as a safe alternative. 

Many start-out buying and letting as a side-line and end up owning a portfolio of properties large enough to support them financially – indeed there have probably been more millionaires created in Europe from property related businesses than almost any other occupation. Furthermore, there is an added incentive to enter this field as it is now being predicted that early retirement may not be an option for most people and that pensions may not provide all we desire in old age. 

Look out for the next article that will give you an insight on Residential and Commercial investments as well as the customers that rent them.

Written by:

Andrew Agius Muscat – Business Management Analyst

Mr. Agius Muscat is a Business Management Analyst who has extensive back ground in the business world.  He is presently the Chief Executive Offices at the Malta Institute of Management and has held several top management positions. He recently held the position of Group Strategist and Planner for Attard Bros Group, a real estate developement and construction company in Malta.