Renting a property in Malta
June 30, 2009
Renting a residential or commercial property in Malta is a very simple procedure as anybody can sign a rental agreement quickly and move into the property of their choice instantly. But just like everything else in life, even the easiest things have their ‘INS’ and ‘OUTS especially when you are in a new country and this is where the services of a professionally run Real Estate company is necessary.
· Contact a real estate company with a reputation for letting property in Malta.
· Make a wish list.
· Dont be shy and ask all the questions required but be specific so that the agent does not do any unnecessary work which he does not need to.
· Make a short list of property in Malta that you preferred and view the top ones twice.
· Ask for a copy of the letting agreement before you sign it.
If you are signing an agreement for more than a year the price is usually negotiable by proximately 10%, any subsequent year you may be able to negotiate further.
If its shorter than a year the owner will probable not want to negotiate much but leave that to your real estate agent in Malta.
Questions on buying property in Malta
June 30, 2009
Buying Property in Malta as an Investment Just like in any property market, during the good and the bad times there are opportunities. And on most occasions during the not so good times there are even more opportunities for investors. However, unlike the media makes it out to be and although it is true that property prices of property in Malta have been cut on an average of 15 to 20 %, Malta is hardly being affected by this so called financial crisis.
We are blessed so to speak because of our shrewd bankers in Malta who do not just give money away without pure evidence that this loan will be paid. Their searches and background checks are thorough and they will only make a calculated risk unlike they do in the UK and in other countries like in the US. Bank of Valletta and HSBC Malta are both reputable and strong banks on a local and International level. I do not understand how easy one can practically receive a loan without even going to the bank in other countries. I don’t know how it is at the moment however in the UK they actually used to sell loans to people.
I remember a friend of mine telling me that he was with his wife who was from the UK and one day whilst they were in Malta, she needed to arrange something with her bank. She was not making her loan payments and she needed to get a moratorium for a few weeks as she was waiting for funds as she had just rented her apartment in the UK. After her conversation with the bank, she realized that she had just borrowed an extra £ 10, 000 to make her payments on her loan as well as pay off her credit cards and she also applied for a non-interest loan which would mean that she cut her loan payments in half. This really made sense to her at the time because the bank relieved her of her stress for a few months and at the same time gave her more spending power. The funny thing is that the bank did not say anything about the fact that she was domiciled in Malta, that she no longer was receiving the same UK salary that she was being paid when she lived in the UK and they also for her convenience sent the papers to Malta for her to sign. For my friend this seemed ludicrous and that she should not take up the offer of the bank. To cut a long story short, she took it and would realize later that the rental of the property in the UK fell through, she ended up even more stressed than ever before and finished up putting the property on the market for sale which took almost twelve months to close and sold it for 25% less than the original valuation due to the crash of the UK market. If it wasn’t for her husbands financial stability she would have not made the loan payments and the bank probably would have foreclosed on the property. The banks may have took too many risks without thinking of their customers future and this ia one of the said reasons there was such a crash in property markets in other countries whereas in Malta even if you have a client with twenty million Euros in the bank you still have to go through a series of checks before you finally receive the confirmation of the bank.
The property price decline of property in Malta is said to be due to a number of reasons. The first is that property prices in Malta were overpriced in the first place due to a fake economic increase caused by new developments of better quality (more expensive) being put on the market compared to a lesser quality that was being marketed at the same price. Developers also took risks on buying expensive land. Government did not stop giving permits to property developers when there was already 1000’s of properties on the market. Government gave permits to areas to build an extra floor or two which encouraged property developers to buy houses in nice residential areas for development and sell expensive due to cost of land and quality finishes.
Hearing from the main real estate companies and developers that build and sell their own property in Malta saying that their sales have not been affected makes one wonder what the real (estate) truth is. The facts are that in a down market opportunities to buy good property in Malta or anywhere else are available. If you have a quality product and its priced well it will sell.
It is recommended that a reputable real estate agent in Malta will assist you in finding the right property in Malta.
Property in Sliema, Malta
June 29, 2009
Sliema and the coastline up to neighbouring St Julian`s constitutes Malta`s main coastal resort. It is one of the main touristic areas in Malta and is also the place where the Maltese relax and take for their walks and jogs. There are plenty of seats along the promenade and on summer evenings the seafront becomes a sociable meeting place for locals. You will find various seafront restaurants, cafe’s and pubs where you can be serve the best of traditional Maltese food as well as Mediterranean cuisine. During the day, besides having various Hotel beach clubs, there is a variety of rocky beaches that are served with restaurants and bars where it is ideal for swimming. Sliema, which means `peace`, was once a quiet fishing town on the peninsula across Grand Harbour from Valletta. The town began to develop rapidly in the early 20th century as a summer resort for wealthier Valletta residents. Their elegant villas and town houses line the quiet, inland streets. The Sliema promontory offers on one side stunning views across to Valletta and on the other, open sea views. The coastline has two tower fortifications: a De Redin watch tower built in the 17th century; the other was built by the British in neo-gothic style in the 1880s. The property market in Sliema is very buoyant and property values tend to hold their ground or may even rise making an property investment ideal. From a rental point of view Sliema is one of the most sought after along with St. Julian’s.
To view latest property for sale and to let in Sliema
Property in St. Julian’s, Malta
June 27, 2009
St Julian`s is now an extension of Sliema although it started life as a small fishing port based on Spinola and Balluta Bays. Like Sliema, it is now a major residential and tourist centre, and home to some of Malta`s newest hotels. St Julian`s merges with Paceville, Malta`s main nightlife centre where there are clubs, casinos and numerous restaurants, cafes and bars. Picturesque Spinola Bay is still used by fishermen whose traditional boats are housed just below the restaurants. The bay is particularly attractive at night and as a venue for open-air dining. The elegant Spinola Palace, built in 1658 by an Italian knight, Giovanni Spinola, is the landmark historic building on the bay. Another fine building with superb sea views is Villa Dragonara, now a casino, on the headland of St George`s Bay.
To view latest property for sale and to let in St. Julian’s:
Property prices down 15 to 20% - Chamber
June 25, 2009
Written by Herman Grech - Times of Malta
Property prices in the first quarter are down by 15 to 20 per cent compared with the same period last year, according to a preliminary report by the Chamber for Commerce, Enterprise and Industry seen by The Sunday Times.
However, there are also indications that the downward trend is “probably being reversed” as confidence slowly returns to an industry that is one of the major contributors to the economy.
The report was compiled by the chamber’s director general Kevin Borg, following a review among members in the Real Estate Business Section and of the Federation of Building Contractors (FOBC). Some its contents were published in the chamber’s monthly publication, The Commercial Courier, last Thursday.
According to Central Bank index, the price of advertised residential property declined by 2.7 per cent during 2008 but the FOBC believes this figure is underestimated because prices are being slashed further during the negotiations stage.
The FOBC believes that, in general, property prices fell by around 15 per cent in 2008 (compared with 2007) and by around 15 to 20 per cent in the first quarter of this year.
Tax revenues from property sales in January and February declined by 31 per cent while the number of Promise of Sale Agreements signed during the first quarter of this year declined by 6.7 per cent, compared with last year.
The FOBC confirmed that orders are down drastically and profit margins have been squeezed to a minimum.
The slowdown in the sector, together with the fall in price, is attributable to a number of facts, according to Mr Borg.
Despite its size, Malta clearly has an oversupply of real estate. The latest census in 2005 exposed 53,000 vacant properties, but since then thousands of others have come onto the market. Many have remained unoccupied.
Owners of large houses were encouraged by high prices to develop their properties into apartments for a profit, but various operators who took part in the chamber’s exercise said that the oversupply related mainly to ’substandard’ tiny apartments.
Property development also boomed as a result of government amnesties enticing the public to bring back their foreign investments. Buoyed by relatively low interest rates, they converted houses into tiny apartments not realising that the property bubble was about to burst.
“Real estate agents do not regard this stock of substandard properties as sellable - certainly not at the demanded price,” Mr Borg said.
Although the market appears to be holding out in general and there is no particular rush to sell, owners of these so-termed ’substandard’ properties will need to cut their losses and try to improve them to meet the standards demanded by the market.
Mr Borg said that contrary to public perception, the slowdown in the market was not caused by the international recession, which only marginally contributed to the existing over-supply situation due to a drop in foreign demand (especially British) for local properties. Some estate agent companies have meanwhile diversified their marketing efforts towards Scandinavia with reasonable success.
“Following a decade of rapid escalation, the pressure in prices was bound to cool off at some stage. This time round, what brought it about was an over-supply situation as investors - both new and established - rushed to the market,” Mr Borg said.
But while construction operators reported increasing difficulties in their activities, including shortage of demand and cash-flow since the start of the year, there seems to be light at the end of the tunnel for the real estate sector. Mr Borg said that preliminary figures show that the sharp drop in confidence and price expectation reported between November and January has started to reverse.
Given the clear oversupply situation in real estate and low investor confidence, developers, building contractors and other stakeholders should be encouraged to shift their effort and resources towards other forms of long-term projects with clear and tangible benefits to the private sector and society alike, Mr Borg said.
“We need to learn from mistakes and the authorities need to vet the applications properly to help a volatile market,” Mr Borg said.
In fact, the chamber is recommending that new permits for seemingly substandard developments be scrutinised thoroughly by the authorities to ensure adequate housing facilities. After ensuring that unsold poor quality properties are altered to acceptable standards, the chamber is suggesting that the government should enter into agreements with the private sector to utilise vacant buildings for social housing purposes.
The chamber is also recommending a review in the conditions surrounding the status of ’special designated areas’ and a fine-tuning of capital gains tax.
Mr Borg said: “Above-all, short-term business and economic objectives should not come at the expense of environmental concerns.
“This will ensure a healthy balance between present and longer-term prospects for the sector and the Maltese environment in general.”
In the coming days, the chamber will be releasing the full data emerging from its perceptions and expectations surveys, which it conducts in conjunction with PricewaterhouseCoopers.
If your looking for a property in Malta it is recommended that you hire a reportable real estate company in malta so that you will be rest assured to find the right deal for you.
Guidance on renting property in Malta
June 22, 2009
If you’re not aware of your rights as a renter you are a sitting duck for the few dodgy letting agents and landlords in Malta always ready to take any short cut possible to save themselves money. A reputable real estate agency in malta will provide you with the assurance that this will not happen.
Whatever your reasons for choosing to rent a property in Malta whether its because you are on a work assignment or that you can’s afford to buy at the moment it simply makes sense to ensure that you’re getting your money’s worth.
There’s nothing more heartbreaking than handing out large sums of money every month when you’re not entirely satisfied with your property in Malta. Your property should be somewhere you feel safe and happy.
Finding a property to rent in Malta
Why and what type of place you choose to rent can depend entirely on your circumstances. Perhaps you’re a ‘Young Professional’, happy to delay the commitment of buying a property, looking for a self-contained flat with all the mod cons. Or perhaps you’re an Executive starting a job on the Island and you need a property of a certain standard. In Malta you will find a property that will have what you are looking for – years have gone by and expatriates still need to come to Malta and standards are at their highest levels.
You should always make the same checks as if you were buying the property. You might end up living in a rental property for as long as someone lives in a property they’ve bought, so you should set similar standards. Visit the property at least twice at different times of the day, ideally in the afternoon and in the evening. Understand what it means to live on the seafront and the noise that goes with it, ask the landlord if residue from soot from cars needs to be cleaned off the balcony often. Make sure to ask if there is airconditioning in each room and if not see if the landlord will install it. 99% of the time, the landlord will install it to close the deal unless there is a technical problem and it can not be installed. There are various questions just like these that you should ask your agent when you looking for a property. Write these down if you have to, the excitement of finding a decent flat or home can often cause the most rational person to go giddy.
· Is the area quiet or noisy?
· What types of people live in the surrounding area?
· Do you feel comfortable there?
· Are the available transport links appropriate for your needs?
· How close is the property to the local shops, supermarkets or schools?
· Is car parking easy?
· Will the property be cheap to heat and light?
Does the property look to be in good condition? A badly maintained property can often reveal an illusive landlord and future problems. If the property is in a poor condition, but you still wish to rent it, use its faults to negotiate a lower rent.
Is the property really worth the rent being asked for it?
Can you really afford it?
Avoid putting yourself in a position where you can’t enjoy the lifestyle in Malta. The summer months can be packed with evenings out at restaurants, with friends at cafe’s and of course enjoying the sun at the beach. This depends on your means but trust that you need to ask these questions.
A reputable real estate company that has years of experience in renting property in Malta should be able to guide you accordingly.
Villa for Short term rental in Mellieha, Malta
June 11, 2009
Villa for Short term rental in Mellieha, Malta Ref #2413
This spacious detached villa in Malta is situated in a very exclusive and peaceful valley know as Santa Maria Estate in Mellieha 
(a small village in the northern part of the island of Malta). Malta`s largest sandiest beach “Mellieha Bay”, is a 15-minute walk long coastal paths and there is also good sea bathing with a small beach barely 5 minutes away. The villa is within walking distance of the main road leading to the heart of the village, which boasts a number of restaurants, bars and night spots. Villa “Little Legs” commands country and sea views and has its own adult and children`s pool, set in a private garden. It is fully furnished and offers a large family the opportunity of holidaying together whilst affording a large degree of privacy. This villa in mellieha is elevated and comprises 1 bedroom with 1 double bed and bathroom ensuite, 1 bedroom with 3 single beds, 1 bedroom with 2 single beds, main bathroom, spare toilet, a fully equipped kitchen including oven, hob, fridge, freeze, microwave, kettle, toaster, washimg machine, living room with tv/melita cable service and dining room. On lower level which can be accessed from pool area, there is 2 bedrooms with 2 single beds in each and a shower ensuite, ideal for the larger families. There is also an open shower and a spare toilet next to the lovely pool with a built-in bbq. Sleeps upto a maximum of 11 adults. Maid service and change of linen supplied once per week.
Highchair provided upon request and baby cot provided free of charge.
MALTA Villa for short lets
June 8, 2009
STA. MARIA ESTATE, Mellieha, Malta # 4379
This detached house has been built on two levels and its elevated position affords views over the San
ta Maria Estate and out to sea. Home to Maltese owners, who live here most of the year, it is comfortably furnished as a family house. Accommodation includes: upper level with lounge/dining room with doors to covered terrace, kitchen with breakfast area having fridge/freezer, oven, hob, microwave, dishwasher, 2 double bedrooms - each with ensuite bathrooms including small baths and one with doors to terrace, 1 twin bedroom and a seperate bathroom. Lower level (more simply furnished) includes 1 small twin bedroom with shower room. A swimming pool measuring 10×5m with a built-in bbq further compliments this property which is situated 2kms away from the beach and 1km away from shops. Property is fully equipped including tv `den` with video. The Haven sleeps a maximum of 8 persons, baby cot available on request, food pack prepared on request at cost charge, maid service and change of linen/towels supplied once weekly at no extra cost, telephone available, a/c unit in 1 bedroom at an extra charge. Rates include water and electricity charges but does not cover air-conditioning charges.
South Africans coming to Malta
June 8, 2009
APPLICATIONS for permanent European Union (EU) residency via the country of Malta have certainly stirred considerable interest among South Africans.
A source from South Africa has informed us that since opening their consultancy offices offices in Cape Town seven months ago, more than 500 South African applicants have sought the company’s expertise and service in securing permanent residency in Malta as well as potential property investment opportunities in the Mediterranean country.
At the heart of the Mediterranean, 93km south of Sicily, Italy, Malta is a large island retreat incorporating several smaller islands and is a member state of the EU.
Residency in Malta offers accessible business prospects with fellow EU member states, offshore investment potential, great tax benefits and easy access to countries within the Schengen area — the 25 European countries that have removed border controls between one another.
The increased demand from in particluar the Gauteng province in South Africa, has prompted the company to set up permanent representation in Johannesburg and there are future plans for representation in Pretoria and even Durban as well.
Malta is a country of favourable warm climate, an abundance of natural beauty inclusive of pristine coastal vistas and a history dating back to the Roman Empire.
As part of securing residency in Malta it is required that residency applicants buy or rent a property in Malta or Gozo, one of the nearby smaller islands. For your slice of the Mediterranean lifestyle and all the perks that go with, there are various properties that could be of interest.
On the east coast of Malta is Tigné Point. It is described as “a promontory overlooking the beautiful 17th century walled city of Valletta, the island’s capital and a world heritage site”,
“It is a mix of luxury homes, hi-tech offices, stylish shopping, trendy cafes and state-of-the-art health and leisure amenities,” says Bowling, director of Crusaders. The first phase of the site was launched off-plan in 2002. Block T10, a residential component to the Tigné Point South phase, is almost complete.
Bowling says: “Block T10 comprises a series of spacious foreshore apartments with views of Valletta, a garden, the piazza or open sea. This block offers a varied mix of apartments and duplexes as well as a choice of stunning penthouses.”
The apartments in Tigne Point have refined finishes, quality heating and cooling systems and provisions for ICT connectivity as well as sound and lighting options. The site offers pedestrian walkways, convenient access to nearby shopping facilities and swimming in the Mediterranean waters.
Apparently, out of 239 apartments of a total of 259 at Tigné Point have been sold. Prices of the remaining apartments start from € 400, 000
There is also Portomaso which is on the east coast — a beautiful waterfront residential site offering high end luxury living ideal for the enthusiastic yachtsman. The construction and sale of the residential component started in 2000. Much of the infrastructure, the 120 berth Marina, the Hilton Hotel, the Portomaso Business Tower, and most of the commercial elements were completed and operational in 2000. Residents moved into the first blocks of apartments in the same year too.
95% of the 400 plus apartments have been sold however there are re-sales like in any other project. There are a limited number of sea-fronting, three-bedroom units at 220m² for sale starting from € 880000 and a few one-bedroom landward-looking apartments from € 280000. However, resales are also available at lower prices.
Besides the above mentioned properties, there are other investments properties that are available on offer in Malta. There are over 7 major projects that one could look into. Going at the same level of pricing as Tigne Point and Portomaso, and much lower. There is a limit that you need to spend but you really dont have to break the bank.
Property in Malta Recession ?……. Not (dont believe everything you read or hear)
June 6, 2009
Regardless of what some media say and few from the real estate community are claiming, there has apparently been quite some movement in the Maltese property market. It is quite clear and unfortunate due to our small community negativity spreads quicker than a wild fire. It sells media and can attract lots of attention to individuals that be looking for some sympathy…..
The life of a real estate agent in Malta is full of ups and downs and with the most part being the latter it is indeed classified as a hard career to crack. A real estate agent works an average of ten hours a day, six days a week and when not at work should at all times be switched on seeking out potential leads. But, however hard this career maybe, it also can be very rewarding though only 15/20% of real estate agents are very successful. The rest are what they call as non productive agents or middle level producing.
The process of buying a property in Malta can take two, three months or even up to eighteen months meaning a real estate agent only gets paid when keys have been exchanged and the money has been transferred to the seller. The first stage of formalising the purchase of a property in Malta starts with a Promise of Sale which binds both parties by law over a holding deposit, during the time in between the Promise of sale and the closing where all searches are carried out to confirm that title of the property is actually owned by the seller and the seller has no outstanding hypothecs or loans with the bank or any institution for that matter. Some less fortunate real estate agents in Malta or anywhere around the world don’t see any fruit for several months until they decide to move on and see a different career. These real estate agents are the ones that tend to look for sympathy and hide behind their stories of how badly the property market is doing. Negativity does not assist him in his production and neither will help his or her colleagues encourage people to purchase property. One may sympathise with the person however there is always risk that you fall into this trap and assume all is bad when that is the only opinion of one person. There you go and this is how ant hill’s are turned into mountains.
The Facts
Just recently, two of the largest real estate companies in Malta featured in interviews with a National Newspaper. One of the titles stating boldly; “Recession? Bring it on” written in the Business Today last Wednesday and the other articles title, written two Thusday’s ago in the Business Times supplement of the Times of Malta was “Overpriced property ‘corrected’ by 10 to 15%” and in the body text read that the particular company sales were actually up by 10/15 % during that same period last year. There was also another article written regarding the Midi Devopment called Tigne Point where the heading of that was “Sales unaffected”.
Do your research on the net and talk to credible scources – unfortunately in Malta you do get alot of negativity. Avoid that and once you have done your research talk to a credible real estate company in Malta and we are sure you will find what you are looking for.
