Embarking on the journey to buy your first home is an exciting milestone filled with anticipation and a sense of accomplishment.

As a first-time buyer, you have the opportunity to make a significant investment in your future and create a place to call your own.

In this article, we’ll provide a comprehensive guide to help you navigate the process of purchasing your first home, empowering you to make informed decisions and embark on this journey with confidence.

Establishing Your Budget

Before starting your home search, it’s crucial to establish a realistic budget. Evaluate your financial situation, consider your income, savings, and monthly expenses.

Take into account additional costs such as down payment, closing costs, and ongoing homeownership expenses. This will help you determine how much you can afford and guide your search for the right property.

Get Pre-approved for a Mortgage

Before you start house hunting, get pre-approved for a mortgage.

This will give you a clear idea of how much you can borrow and assure sellers that you are a serious buyer. Compare mortgage rates and terms from multiple banks to secure the best deal.

Identifying Your Needs and Wants

Make a list of your priorities, considering factors such as location, size, number of bedrooms, amenities, and proximity to schools or workplaces. Understanding your needs and wants will help narrow down your search and ensure you find a home that aligns with your lifestyle and future plans.

Engaging with a Knowledgeable Real Estate Agent

Enlist the services of a reputable real estate agent who specializes in working with first-time buyers. A knowledgeable agent will guide you through the process, provide valuable insights, and negotiate on your behalf to secure the best possible deal.

Conducting Thorough Home Inspections

Once you’ve found a property you’re interested in, schedule a professional home inspection. This step helps uncover any potential issues or repairs needed, ensuring you make an informed decision and avoid costly surprises down the line.

Understanding the Financing Options

Familiarize yourself with the various financing options available to first-time buyers. Research the pros and cons of each option, including interest rates, down payment requirements, and eligibility criteria, to determine the best fit for your financial situation.

Negotiating and Making an Offer

Work closely with your real estate agent to craft a competitive offer based on market research, property condition, and comparable sales. Negotiate terms and contingencies, aiming for a mutually beneficial agreement with the seller.

Closing the Deal

Once your offer is accepted, navigate through the closing process. Review all necessary documents, coordinate with your bank and notary, and schedule a final date for signing the closing documents.

Conclusion

Purchasing your first home is an exciting and rewarding experience. By establishing your budget, getting pre-approved, identifying your needs and wants, engaging with a knowledgeable agent, conducting thorough inspections, understanding financing options, negotiating, and successfully closing the deal, you can make your dream of homeownership a reality. Remember, this journey may come with challenges, but with careful planning, research, and guidance from professionals, you’ll find yourself unlocking the door to your very own home. Enjoy this memorable chapter in your life and embrace the pride and joy of being a first-time homeowner.

 

 

Same as many Maltese yesterday, we at home were stuck to television expecting Minister of Finance to give a budget speech…

Times are difficult, World has just gone out of lockdowns and the global COVID crisis and started breathing a bit of fresh FREE air, tourism started picking up slowly, global trade started picking up too… and in the dawn of the world waking to some nicer day, there was another crisis waiting… war in Ukraine.

No need to mention the rise in all prices and insecure future this war still holds upon us.

What could we expect from the government in such times? Not much.

And then it started… besides social benefits which in difficult times people were hoping for, there came out some other very good measures

Firstly, Government will extend all existing property schemes that were already showing good results, such as – tax breaks for buying old properties, and first – and second-time buyer schemes

First time buyers – The duty exemption for first-time home buyers on the first €200,000 . The difference from value of €200.001 up duty is 5%   First-time buyers will also be eligible for grant of EUR 10.000 payable over 10 years to help them cope up with loan repayments

Second-time buyers – People who sell their first residential property to buy another residential property are currently eligible to a refund of duty of up to €3000 (or €5,000 in the case of persons with special needs).

More info: https://cfr.gov.mt/en/inlandrevenue/legal-technical/Documents/Guidelines%20STB.pdf

Equity Sharing scheme – people over 30 years of age may apply for scheme where Housing Authority takes up to a maximum of 50% of the property value, capped on EUR 200.000 and will be paying it up together with buyer. 10% deposit should be paid by buyer. After 20 years buyer will be obliged to buy Housing Authority’s share at a price that Housing authority paid.

Scheme for 10% deposit – where Housing Authority assists buyers in solving one of burning issues when purchasing property – Deposit. Government is through this scheme lending the money to buyers as interest free loan for 10% deposit and helping them overcome this big obstacle in acquiring a new home. It is capped at a property purchase value of EUR 225.000 

Home Assist scheme – to help low-income persons and couples to secure bank loans.  A grant of up to €167 / month is given to finance part of the repayment of a loan to people with low income.

More info : https://housingauthority.gov.mt/services/affordable-housing/

New Hope guarantee –  where Housing Authority will offer an alternative to a life insurance policy for all those who couldn’t get insurance due to medical condition or disability. Price of the property up to EUR 250.000

Tax breaks for buying old properties scheme extended –  when buying old property which was uninhabited for over 7 years and purchase price is up to 750.000, no stamp duty or capital gains will be charged. In order to prevent speculation, such properties cannot be subdivided and re-sold but should be used as residence.

All in all, it was a very good budget in a difficult times, helping many buy their home despite different difficulties they might have and bringing positivity in future developments in property market.

 

Budget document link: https://finance.gov.mt/en/The-Budget/Pages/The-Budget-2023.aspx 

 

 

 

 

This year Government of Malta has published the best budget ever. Important measure has been extended for another 6 months:

Reduced stamp duty rate – Reduced tax rate on first 400.000 of 5% and reduced duty rate of 1.5% on the first €400,000 of the transfer value of the property continue to apply for promises of sale registered until 31 December 2021 and for which contract is concluded by 30 June 2022.

This important measure is believed to help many buyers and sellers in post-covid times. Currently, prices of properties have stabilized and this important measure may help many buy their new home!