Working with a Real Estate Agent in Malta
Local property prices in Malta have been steadily going up by between 6% and 10% annually since the 1960’s. And during the last decade, some areas/localities even recorded an annual percentage rise of up to 20%. These rocketing prices and increased competition between the local developers have combined to make the sale or purchase of a property in Malta one of the most stressful transactions a consumer will ever make. And this is where the real estate agents start to play an important role.
A real estate agent is more of a “guide” than a “salesperson”. They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a property. There are also times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent. Remember that real estate agents in Malta or anywhere else are professionals who spend their days valuing properties, attracting prospects, arranging viewings and negotiating sales.
The trouble is that most people view real estate agents in Malta or for that matter anywhere else in the wrong light most probably because there is the element of commission involved. It is true that the seller and the buyer (indirectly) will be expected to pay a fee or commission if the property is sold. But in return, the real estate agent will offer helpful services, the value of which may easily exceed the commission price and which you may not be able to obtain otherwise.
Helping the Seller
The right asking price is perhaps the most essential ingredient in the selling strategy. It is always very tempting to ask a few friends and relatives for their opinion and finally determine the price. But if the asking price is too high, people will not even bother to view it and the result is that you won’t even reach the market place. Ask too little for your property in Malta or Gozo, and you are potentially giving away part of your assets! An experienced real estate agent can help you determine a reasonable asking price by giving you up-to-date information on what is happening in the marketplace and valuable information of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
Once your property in Malta is on the market, the real estate agent might have an inventory of qualified buyers who may be interested in viewing your property. If you are lucky enough, you might even sell property within the first few weeks!
A real estate agency will also take care of your marketing plan. In most cases they will advertise your property free of charge. And if the buyer puts an offer that does not meet your asking price (as it happens in most cases!), the estate agent will use his expertise and negotiating skills to find a compromise and close the deal. The agent should also assist in making sure the closing goes through as planned and the change of possession takes place as smoothly as possible.
Helping the Buyer
When you decide the time is right to invest in a property in Malta or Gozo, you’ll need to ask yourself how much you want to invest. The next logical step is to find the properties that fit your needs and requirements. But do you have the time, energy, sources of information, and market knowledge to find the right property for you? A real estate agent has many resources to assist you in the selection process by providing objective information about each and every property that meets you requirements.
A real estate agent will also:
• Give you a wider choice by showing you a large selection of properties that meet your requirements
• Explain all the procedures and expenses involved in buying a property in Malta
• Negotiate the right price for you
• Suggest a reputable notary
• Keep you informed as new properties come onto the market
Remember… a skilled and knowledgeable real estate agent will save you time and money
How should I select an agent?
• Ask friends or relatives for recommendations.
• Check the business directory or drive around the neighborhood in which you want to buy, looking for real estate agents who specialize in that area.
• Look for an real estate agent with a good reputation. Ask people who have bought houses in the neighborhood and see if they can give you any suggestions
• Call well established real estate agencies
• The cheapest is not always the best. Find an agent that gives the service you need and want.
You may also want to seek the services of two or three different estate agents so that you can compare what each of them has to offer.
A final word
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today can easily exceed € 90, 000 for a good-sized apartment. If you had a € 90,000 income tax problem, would you attempt to deal with it without the help of a certified accountant? And if you had a € 90,000 legal question, would you deal with it without the help of a lawyer? Therefore, considering the small upside cost and the large downside risk, it would be foolish not to consider the professional assistance of a real estate agent when searching for a property in Malta!
Renting a property in Malta
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.
Malta Property Market reaping fruit from smart Government investments
Although property prices have reportedly gone down in certain segments of the market, the National Statistics Office has reported that registered property sales have been steady throughout the last year and almost at par of what was registered in 2008. The global economic crisis has had little effect on the
Malta property market with great thanks to the solid banking institutions in Malta who have been conservative but shrewd in their business practices. In what has been a year of misery for some European countries, the Maltese Government has continued to invest heavily in ICT, gaming and other industries. The result is that Malta is now seeing the fruit not only from the number of companies interested in setting their
businesses up on the island but also from current economic activity from licensed company employees and executives. This has generated a multiplier effect throughout the economy which has specifically affected the property market not to mention other industries that is said to have generated over €15 million in revenue.
Benefits of Buying Property in Malta
Besides developing and investing in niche markets, the Maltese Government also targets foreigners to Malta through its a beneficial Residence Scheme, where one may take advantage of its low income tax rate of 15% on income received to Malta and no real estate tax amongst other interesting benefits. The only main requirement is that one has to purchase or rent an apartment in Malta. Purchasing a property in Gozo or Malta is a relatively easy process whereby one would have to sing a promise of sale which binds the vendor and the buyer to a period of time where all title researches are done on the property in Malta or Gozo are done, paper work for mortgage should be sorted out as well as an AIP permit if required. Contract would be signed and keys of the property in Malta would be exchanged.
it is recommended that anyone searching for a property in Malta should seek advise from a reputable real estate agency in Malta.
Make a move on Malta, Property Market still stable
The Pope is due to visit next month, but that’s not the only reason Malta is stepping into the limelight.
Those in search of second homes are waking up to the idea that properties here make for good investments. English is spoken everywhere, and the climate, cafe culture and relaxed atmosphere have always made this small island attractive to British visitors.
However, the renewed interest in the property market is down to other factors. ‘There’s more demand than land available, ‘ says Ray Woods, of Maltabuyproperty.
‘Malta has never been part of the great property bubble and the domestic sector has held up well, representing 70 per cent of the market.
‘It has not suffered the financial meltdown experienced in other countries, and local banks are offering 90 per cent mortgages.’ Another point in Malta’s favour is easy access. It is well served by low-cost airlines: easyJet and Ryanair fly there; Bmibaby is introducing a service from east Midlands airport from the end of May; and Air Malta is flights from Gatwick or Manchester from just £89 return.
Interest is also fuelled by improvements in the British property market.
‘This recovery is giving British buyers greater confidence to take the plunge and go for their dream property abroad,’ says Nick Bilocca, of Frank Salt (Real estate) Ltd.
‘They tend to prefer apartments, ideally close to the sea, and Malta has a good selection of properties at excellent value.’
Malta comprises just 122 square miles and so the sea is never far away, but you’ll pay a premium for uninterrupted views. ‘Sliema and St Julians are popular, and 1,615 sq ft resale two-bedroom apartments close to the seafront start from about £156,164,’ says Trafford Busuttil, of Property-line International.
Valletta, the capital, is a World heritage site, and walking through its narrow streets is like stepping back into history. Old buildings are being regenerated and transformed into stylish apartments, subject to strict planning laws.
The successful fusion of ancient and modern is showcased in a former palazzino in the heart of the city converted into three duplex apartments.
Each has an open-plan kitchen/ dining/ living room and two double bedrooms, and the penthouse has views towards Marsamxett harbour and Fort St Elmo.
For those with bigger budgets, villas tend to be in residential areas. Most are resales, starting at around £268,000 and going up to more than £1 million for a seafront detached villa complete with pool. The neighbouring island of Gozo is quieter and suits those wanting to get away from it all.
Converted farmhouses and period properties are particularly sought after. A fabulous home on the market in Gharb is packed with original features, has four bedrooms, all with ensuites, a central courtyard, terrace and pool. Malta’s holiday season lasts for up to 26 weeks a year, which is good news for those hoping to earn income from holiday rentals.
‘The most popular resort with holidaymakers is St Paul’s Bay, followed closely by Valletta and Mellieha,’ When buying purely for investment, Ray Woods recommends opting for long lets.
‘These are a safer bet because rates for holiday lettings are low in some areas, so look for properties near to centres of employment,’ he says. ‘Gzira, outside Sliema, is a good choice.’
Tigne Point in Sliema is Malta’s most ambitious property regeneration project. Across the harbour from Valetta and 15 minutes from the airport, it includes a piazza, new shopping mall and luxury apartments in landscaped gardens.
Only ten units are available, starting at £408,000 for a two-bedroom apartment. The development appealed to Andrew and Jayne Harding from Stockport, who have visited Malta 37 times.
‘ We were interested in the apartments and penthouses and asked developer Tigne Point to explain what was being built and the concept behind it,’ says Mr Harding.
‘We were also taken on a private visit to Manoel Island in the middle of Valletta’s natural harbour and saw the extensive restoration works being carried out on the 18th-century fort.
Is buying luxury property in Malta the best investment?
If you are looking to invest in property in the Meditteranean, according to local reports Malta’s real estate industry is still one of the only markets that is stable and reaping fruits. According to James Vassallo, Sales and Marketing Manager of Tigne Point Malta, one of Malta’s most prestigious developments, sales of their developments have remained stable throughout 2009 and are still encouraging in 2010. Claims are out that now that Tigne Point have opened their shopping facilities which also includes beautiful cafe’s and restaurants the project is finally coming together and throughout 2010, sales may pick up faster than projected.
The luxury property market in Malta has always seemed to do generally well with interest combined from both locals and foreign investors. Nationalities like South Africa find Malta the best and the easiest EU country to apply for residency and therefore with the obligation of buying a property in Malta to become a resident, the Real Estate industry benefits as much as the potential resident. Having said that if you are moving to a country to become a resident why wouldn’t you want to buy a property there is you plan on being based there. Brick has always been the best age old investment one can buy.
Villas for sale in Malta are also ever so popular. Malta’s unique spacious villas can be very attractive compared to the common European sized houses. They are almost like palaces and often come with breath taking views. In Malta, villas can have a floor plan of even 1000Sqm including pool area.
Its always important to do your homework. Speak to someone that knows the dos and donts, someone that can possible provide you with the Legal and Tax implications (or benefits)
Drop in Malta Property Prices slows down
Malta Property prices continued to fall in December although the drop was much less pronounced than in the previous months, indicating that the negative trend may have bottomed out, according to the Central Bank.
The bank’s index of advertised residential Malta property prices was down by 1.4 per cent in the fourth quarter of 2009 as against the 2.5 per cent decline registered in the previous quarter. The index published in the bank’s first quarterly review for the year, which covers economic data for end 2009, also shows that average Malta property prices for the whole year were five per cent lower, reflecting the sharp contraction seen in the first half of the year when recessionary pressures dragged down the Malta property market.The relatively modest fall in the index towards the end of 2009 suggests that the negative trend in prices appears to have bottomed out and that the Malta property market may be stabilising,” the bank said. According to the index, the drop in the supply of new properties may also be slowing down.While in the last three months the number of properties advertised for sale in the bank’s sample dropped by 7.9 per cent on a year earlier, new properties coming on the market in the previous three months had declined by a significant 24.1 per cent. The number of building permits issued by the Malta Environment and Planning Authority was also down, by 3.7 per cent, in December when compared to the previous year, which is in stark contrast to the data for the previous quarter when issued permits dropped by 38.9 per cent. Apartments registered a drop in price of 0.5 per cent while the asking price for maisonettes shed 3.3 per cent. The growth in prices of terraced houses eased to 0.9 per cent and dwellings categorised as “others” bucked the trend and rose slightly to 5.5 per cent.
Published in the Times of Malta 11.06.2010
Tumas Group in €5 million overhaul of VGT quay
Full plan for state-of-the-art Mrie?el office block to be submitted next week
Tumas Group is to enter negotiations with the government over a small extension to the quay at Valletta Gateway Terminals, part of a €5 million overhaul of the former Sea Malta berth, chairman George Fenech told The Times Business.The wider project, which Mr Fenech said is slightly ahead of budget, is intended to allow VGT to provide a wider range of services, including the accommodation of Virtù Ferries’ new, larger vessels. Tumas Group – with its wide-ranging portfolio spanning more than 35 operations – is currently focused on developing its real estate Malta leasing projects, particularly to meet increasing demand for top quality office space. Architect Ray Demicoli has finalised plans for a state-of-the-art office block along the Mrie?el strip, fast becoming one of the island’s foremost business districts. The block, occupying nine tumoli of land adjacent to Gasan Centre, is a joint project of the Tumas and Gasan groups.
It will encompass a total 35,000 square metres of office space in Malta.The full plan for Phase I will be submitted to planning authorities next week. The first phase of the project will include the development of 20,000 square metres’ office space in Malta and underlying parking for 500 cars. “This will be a state-of-the-art, open plan office block able to meet the requirements of the most exigent tenants,” Mr Fenech explained. “It will be almost entirely non-retail, with the only outlets permitted aimed at accommodating the demands of employees like a cafè bistro and a stationer. There will be a child day care centre and a gym. The striking façade will feature curtains of greenery behind which there will be glass corridors framing the offices. Tenants will be able to start moving in by early 2013.”Further down the road, at the business centre housing Deloitte, Forestals and the Lotteries and Gaming Authority, Tumas Group has leased 1,000 square metres to Bank of Valletta subsidiary Valletta Fund Management which is to relocate from Floriana shortly. Meanwhile, Tumas Group is planning an additional 2,500-square metre floor and extra parking facilities to the premises currently leased to HSBC, British American Tobacco and PriceWaterhouseCoopers in Qormi.Ta’ Monita, the 180-unit residential village in Marsascala, another joint venture with Gasan Group, will now begin to be marketed more widely as its shell form is almost complete. Sixty units have already been sold. The project was inspired by Portomaso, the high-end residences developed around the centrepiece Hilton Malta in St Julian’s. The jewel in Tumas Group’s portfolio of residential ventures – as the first of its kind, it spearheaded the spate of ambitious luxury developments by other groups in the wider area – Portomaso remains one of Malta’s most desirable addresses with resale values continuing to rise. Mr Fenech is encouraged by the early signs of recovery in tourism which have allowed for some increases in rates at the group’s major properties Hilton Malta and the Dolmen in Qawra. “The Hilton Malta has performed much better than we had hoped and revenue is up by €1 million,” Mr Fenech pointed out. “The Evian Hilton on Lake Geneve has also performed slightly better than projected.”
At the Dolmen, occupancy rose by eight per cent in February and March and by 10 per cent in May. April’s figures, down sharply by 11 per cent, were severely dented by the ash cloud crisis. Projections for June are showing a 10 per cent gain and could rise even further as the late booking trend persists this year. Tumas Group’s financing arm Tumas Investments plc, has just announced a 10-year, €20 million bond issue, with an over-allotment option of an additional €5 million. The nominal value is €100 issued at par. The bonds are unsecured but are guaranteed by Spinola Development Company Ltd. Copies of the prospectus will be available from June 11.Mr Fenech said proceeds from the issue will be used firstly for the redemption of the Tumas Investments plc 6.7 per cent Bond 2010-2012 on July 9. The rest of the funds will be channelled towards the part re-financing of existing borrowings and general funding purposes of Spinola Development Company Ltd and its subsidiaries.
Malta property prices rise for first time in two years
Advertised prices for Malta property have gone up for the first time in two years, returning to positive territory in March, according to the Central Bank of Malta’s quarterly review.
Data show that in the first quarter of this year, prices increased by 4.5 per cent when compared to a year earlier, the first upward movement in 24 months. This contrasts with a decline of 1.4 per cent in the previous quarter.
Property prices started to drop in the second half of 2007 and took a sharp downturn between December 2008 and March 2009, as the global recession bit deep. Since then they have continued to fall but at a slower pace and the market started to show signs of stabilising.
The Central Bank’s data, compiled from advertised prices, show the upturn in the first quarter was primarily due to higher prices being asked for apartments and the more luxurious dwellings such as villas, townhouses and houses of character.
Apartments, which constitute half of the properties in the bank’s sample, saw prices going up by 4.2 per cent on a year earlier. In the same period, luxurious houses, which make up a fifth of the sample, saw a substantial jump of 21.4 per cent.
In contrast, prices of maisonettes were broadly stable while those of terraced houses dropped slightly.
The bank said the number of advertised properties contracted by 1.3 per cent on a year earlier, while the number of building permits issued by the Malta Environment and Planning Authority fell by 40 per cent reflecting a substantial decline in the number of permits for apartments.
According to National Statistics Office figures published last month, which are based on actual transactions, the property price index rose by 0.38 per cent in the first quarter over the corresponding period last year, mainly as a result of rising apartment prices.
That increase was the first recorded by the NSO since the last quarter of 2008.
On the economic front, the Central Bank has indicated that the economy is expected to grow by 1.5 per cent this year and then accelerate moderately to 1.8 per cent next year.
However, the bank warned that projections were subject to “an unusually high degree of uncertainty” because of the volatile international environment.
Economic recovery, which began in the last quarter of 2009, gathered pace in the first quarter with GDP rising by 3.4 per cent over the same period last year.
Growth in the first quarter was driven by higher export activity and a strong accumulation of inventories. On the downside, private consumption growth moderated, while government consumption and investment fell.
The positive developments in the economy were not reflected completely in the job market with the bank describing the changes as “uneven”.
While employment grew in the first quarter, this was mainly within the part-time category as the number of employees in full-time jobs fell. At the same time, unemployment began to fall during the March quarter and declined further by May.
On the other hand, the downward trend in inflation came to an end in March, registering 0.6 per cent, up from the minus 0.4 per cent in December.
This was attributed mainly to energy prices as consumers started paying for higher water and electricity bills. Inflation continued its upward trend to 1.8 per cent in t he June quarter.
The deficit dropped to 3.3 per cent of GDP in March from 9.1 per cent a year earlier as revenue increased more rapidly than expenditure.
“Fiscal consolidation based on the reduction in expenditure has a more favourable impact on long-run economic performance than revenue-driven tightening,” the bank said, calling for “broader structural reforms”.
“Reforms should aim at increasing the degree of competition and labour force participation, especially among women,” the bank added.
It is always recommended to use a reputable Malta real estate agent when planning to relocate to Malta and buy property in Malta.
Article supplied by timesofmalta.com
‘Slow and steady’ increase good for Malta property market
Higher Malta property prices were good news for the construction industry, Malta property owners and estate agents but increases must be “slow and steady”, a veteran economist has warned.
“A slow and steady increase as has been witnessed is good for the sector. Jumps and bumps are the worst thing that could happen because they create a bubble that can harm the economy,” Karm Farrugia said.
He was reacting to statistics published in the Central Bank’s quarterly review that showed advertised Malta property prices going up for the first time in two years.
The president of the Federation of Estate Agents, Ian Casolani attributed the movement in the market to a number of factors including vendors responding to last year’s market conditions and reducing their prices, which then stimulated activity that has seen the market pick up this year.
“There was also a movement in the market for foreign buyers and people generally got fed up waiting,” Mr Casolani said.
He was cautiously optimistic about prospects for the rest of the year, insisting the market for apartments was still dogged by high supply, which suppressed prices.
According to the Central Bank, the advertised prices for property returned to positive territory in March.
Data showed that, in the first quarter of this year, prices increased by 4.5 per cent when compared to a year earlier, the first upward movement in 24 months. This contrasts with a decline of 1.4 per cent in the previous quarter.
Malta Property prices started to drop in the second half of 2007 and took a sharp downturn between December 2008 and March 2009, as the global recession bit deep. Since then, they have continued to fall but at a slower pace and the market started to show signs of stabilising.
The Central Bank’s data, compiled from advertised prices, show that apartments, which constitute half of the properties in the Bank’s sample, saw prices rising by 4.2 per cent on a year earlier. In the same period, luxurious houses, which make up a fifth of the sample, sawa substantial jump of 21.4 per cent.
In contrast, prices of maison-ettes were broadly stable while those of terraced houses dropped slightly.
However, the Malta property market may not be the appropriate barometer to measure economic recovery with Mr Farrugia insisting the upward movement in the sector was of little importance in this regard.
“From an economic perspective the change is good but not sensational because the recession was not caused by a crash in the property market. In this respect, it is not as important for the economy as much as exports are,” Mr Farrugia said.
With the quarterly review confirming economic growth of 3.4 per cent in the first quarter and the Central Bank forecasting annual growth of 1.5 per cent, Mr Farrugia said the statistics confirmed the economy was on the mend.
It is always recommended to use a reputable Malta real estate agent when planning to relocate to Malta and buy property in Malta.
Article supplied by timesofmalta.com
Dealing with a letting agent in Malta you can trust
It is always recommended that you do a little research before you hand over the utmost important task of finding your new abode to someone you do not know especially in a new country where you may not know the area or the ins and outs of renting property in Malta. The RE/MAX brand has been in operation for over five years – though its founders have been servicing the letting industry for over ten. In 2005 JK Properties Ltd, launched RE/MAX Malta, now one of the leading real estate companies in Malta.
Read more about Letting agent in Malta you can trust