🏡 Your First Home in Malta: A Complete Guide for First Time Buyers
Purchasing your first house in Malta is an important turning point that can be both exciting and daunting. This article aims to make things easier by explaining each stage, offering helpful advice, and assisting you in making decisions.
Step 1: Assess Your Financial Status
Budgeting: Determine your monthly spending plan while taking your income, loans, and costs into account.
Put money aside for a deposit. This usually amounts to 10% of the buying price of the property.
Step 2: Identify Your Loan Choices
Loan Types: Find out what the differences between fixed-rate and variable-rate Loans involve for your monthly payments.
Before Approval: To prove to sellers that you are a serious buyer and to find out your borrowing capacity, get a verbal pre-approval for a home loan so you can confirm your spending power.
Step 3: Select the Right Neighbourhood
Investigate: Find neighbourhoods that suit your spending plan and way of life. Sliema, St. Julian's, and Valletta are well-liked but maybe pricier areas.
Amenities: Take into account the accessibility of public transportation, schools, businesses, and leisure centers.
Step 4: Look for a Real Estate Agent
A Real Estate Agent can assist you in locating a property that fit your criteria and is also able to offer valuable market insights.
Agents are also able to assist in negotiating the best terms and price for your purchase because they would already have made a good relationship with the owners which helps when one is negotiating.
Step 5: Look at Properties and Place an Offer
Evaluations: See a few different properties to get a sense of what is affordable.
Offer: Submit an offer as soon as you locate the ideal property. Be ready to negotiate.
Step 6: The Legal Process
Agreement on Promise of Sale (Konvenju): This is an initial contract that is typically signed to last for three to four months and is made between the buyer and seller.
Notary Public: The notary is responsible to take care of all the paperwork, such as creating the final contract and conducting title searches.
The Architect: Usually appointed by the bank to ensure that the property is built according to permit, if not there is the possibility of sanctioning the area/s that are not.
Step 7: Complete the Approval of Your home loan: Make sure the approval of your home loan is complete.
Final Declaration: Sign the final selling agreement and make any last-minute payments, including the 5% taxation (check for the government schemes and incentives being offered at the time of purchase: https://housingauthority.gov.mt/services/affordable-housing/first-time-buyer-scheme/) and notary costs.
Purchasing your first house will go well if you prepare ahead of time and get expert advice. You'll be well on your way to acquiring your first home if you follow these steps.