Malta Property Buyers Guide
Buying a Home in Malta & Gozo The Republic of Malta is a small country located in the Mediterranean Sea. This Southern European country encompasses Malta, Gozo, Comino and few other uninhabited islands. Malta is located at about 100 kilometers to the South of the Italian island of Sicily and 300 kilometers to the east of North Africa. Malta is a member country of the European Union since 2004. Malta is blessed with beautiful sunny days almost round the year and the temperature never goes beyond comfortable levels. It rarely rains here and it never lasts for a long duration continuously. The annual rainfall in the country is only around 600mm. Added to this is the low tax structure in the country which will be an additional incentive for foreign investment. Excellent and healthy weather conditions, cosmopolitan society, beautiful sea coast landscapes, friendly people and good health care facilities are the factors fondly remembered by tourists visiting the country. Many tourists make Malta their annual vacation destination. Valletta is the capital city of Malta Malta economy Malta became popular a transit location for ships after the opening of Suez Canal in the middle of the eighteenth century. The county s economy was at its peak during this period and sustained it for about a decade. With the advent of new generation sea liners, Malta lost its importance. In recent times, lime stone business and tourism are the major economic activities in the country. Statistics indicate continuous increase in the number of foreign tourists visiting the country. The government has catalyzed this growth by investing on infrastructural facilities to suit the needs and lifestyles of foreign visitors. Liberalization and foreign direct investments have accelerated this growth and now Malta is back to its past economic glory. Financial transactions Maltese Lira (MLT) is the authorized currency in Malta. The conversion rate of this currency as on March 1, 2007 is: 1 Maltese Lira = 3.06899 US Dollars 1 Maltese Lira = 1.56507 British Pound 1 Maltese Lira = 2.32188 Euro Exchange of foreign currency is not at all difficult in Malta, indicating the true cosmopolitan nature of the country. Popular foreign currencies can be exchanged easily in banks, foreign exchange bureaus and large hotels. Some of the foreign exchange bureaus are open 24 hours for the benefit of the customers. Automated foreign exchange machines are also located at many places in the country. Many large shops and restaurants also accept foreign currency. Traveler s cheque can be exchanged in authorized foreign exchange agencies in the country. American express, Visa, Master card and Diners club credit cards are accepted in the country. Malta has good number of ATM to take care of your cash liquidity, if the need arises. Infrastructural facilities Malta s healthcare services are among the best in the world. Services offered in general and private hospitals are excellent. Private schools in Malta mostly follow British system of education and teach in English. Roads in Malta are being improved to make it suitable for international tourism development. The main advantage for UK citizens is that British driving license is valid here and you drive on the left side of the road. Good ferry services connect the islands and there is also a helicopter service connecting Malta and Gazo. Hotels, restaurants and bars are available in plenty in the country. Malta is also well known for its carnivals and club outings. The infrastructure is so good that international level carnivals can be conducted here. The county s business infrastructure is excellent with good communication facilities. The government has formulated many incentive packages and tax concessions to attract foreign investment. Popular locations in Malta Malta is a small country and all places within Malta can be covered within a day or two. Total area of Malta is around 245 square kilometers and Gozo has an area of just about 70 square kilometers. The length of Malta Island at the widest point is about 25 Kilometers and width at the maximum is just about 15 kilometers. In case of Gozo Island, the figures are 15 and 7 square kilometers respectively. Malta is frequented by many foreign tourists round the year, mainly from European countries. UK accounts for nearly 50 % of the tourists visiting the country. UK citizens feel at home here because English is spoken a lot here and the weather is predominantly sunny. Historical places The country is proud of its long history and there are innumerable historically significant locations all around Malta and Gozo islands. The museums, the palace and churches in Valletta are few representatives of the history of the land. Sight seeing Malta has a vast coastal line with beaches that have crystal clear water, long sand stretches and naturally formed small rocky bays. Anchor bay and Paradise bay in the north, Peter s pool and Pretty bay in the south and Ramla bay and blue lagoon in Gozo and Comino are a few such beaches. City tours can be a very beautiful experience. Country side tours are energizing due the unspoiled natural beauty of the area and hospitality of local people. Sports facilities Sports lovers will appreciate the sports clubs located in the country offering variety of sports facilities such as tennis, golf, swimming, squash, cricket, indoor games and general health and fitness facilities. Marsa Sports club and Union Club in Sliema are frequented by foreign nationals as the facilities are excellent and of international quality. Sea diving enthusiasts will love Malta as the sea temperature seldom goes beyond the comfortable range of 13 to 25 degree Centigrade and the sea around the country is quite calm without any major tides. Excellent diving schools are available in Malta and diving gear can be leased near the beaches. A diving permit is required for divers in Malta. Yachting is another popular sports activity in Malta. Excellent maintenance and sheltering facilities are available all around the country for all yachts of all sizes. Malta Real estate Main considerations for buying a property in Malta are the ambience and the price. In rural surroundings, real estate prices are much less than in the cities. Beach properties are the costliest in Malta. However one is never very far away from the beach considering the size of the country. Gozo island real estate will suitable for foreigners who love leisurely way of life. Many properties here are in rural surroundings and invariably overlook the sea. This is an ideal place for retirement settling. With tourism activity increasing in the country, buying a property for rental purposes is lucrative. Government approval is required for foreigners to rent a property. Rental returns of five to six percent are feasible and the returns are dependent on the location and condition of the property. Legal issues Real estate purchase in Malta The legal system in Malta is based on the English system. The real estate purchase process is straight forward and simple and should not be a hurdle, particularly for foreigners from UK. Foreigners have certain restrictions for purchasing property in Malta. These restrictions are basically formulated to protect the interest of local residents and keeping in view the limited property available for sale due to small size of the nation. * People form EU countries that are living in Malta continuously for more than five years can purchase more than one property in the country. There is no need for any government approval * Other EU nationals who have lived for less than five years in Malta or living elsewhere can purchase single residential or commercial property without any permission * All other foreigners need permission from the Ministry of Finance for buying a real estate property in Malta In some notified areas of Malta and Gazo where property prices are very high, no foreigners can freely buy any number of real estate properties without any approval. In case of any doubt on this issue, it is necessary to check with Ministry of Finance before entering into any real estate contract in Malta Purchasing process Preliminary agreement Once a property is identified as suitable for buying, the price is negotiated between the buyer and seller. The logical next step is to sign a preliminary agreement to seal the transaction. The buyer also deposits 10 % of the value of the property as a token of commitment for the purchase. A reliable advocate can help in drafting and finalizing this agreement This finalization of this agreement generally takes about three months. This time can be utilized fruitfully for getting the government approval for the purchase and to complete the research on the property ownership and registration. Purchase contract Once the buyer is satisfied that the property is legal and the permission for the purchase is in place, the next step is to sign the final contract. The buyer s lawyer generally prepares this document. The contact is signed by both the parties. All the payments that are due are settled by the buyer and the document is registered with the appropriate agency in order to legalize the change of ownership. Stamp duties, legal fees and all other dues are settled by the buyer. The total time taken for the entire process is normally around five months. UK citizens will cherish the fact that the complete documentation is in English language. Real estate purchase finance The ideal arrangement to finance your purchase is through your own funds but this is seldom the case. Property mortgage is readily available in Malta and the banks finance up to 90 % of the funds. However the repayment period and interest levels in Malta are higher than in the United Kingdom. Banks in UK can also finance your real estate project in Malta. The quantum of funds required, preferred repayment period, repayment capacity, forecasted foreign exchange rates etc are some of the factors that can influence the final decision for the mortgages. It is preferable to consult an expert in the relevant area for calculated decision in this regard. Cost of purchasing Buyers often tend to forget that additional costs, other than the negotiated purchase price can inflate the total cost of the purchase. Buyers should always compare the total cost with their allowable budget to make the final decision on the purchase of the property. Real estate transactions attract a stamp duty of 5 % in Malta and notary fee of 1 %. In addition to this, if the services of an advocate or agents are utilized in the process they have to be paid the appropriate fee. It is a good practice to define their roles and fee in advance to avoid any misunderstanding when the amount is paid. Traveling expenses, hotel accommodation and all other incidental expenses also need to be considered to arrie at the total cost. It is reasonable to allocate around 12 % of the purchase price for additional costs and other expenses. You may finally end up with little surplus money in hand which will be a good thing. If the property requires remodeling, provision has to be made for such expenses also in the budget. Malta property taxes Foreigners will be happy to note that there are no annual taxes on real estate properties in Malta. Malta does not levy any capital gain tax. However one should be careful before selling the property. If the owner sells a property that was not his primary residence for the last three years, a hefty amount is charged as transfer tax. There is no inheritance tax in Malta as long as there inherited property is not sold. But transfer tax is levied if an inherited property is sold. Travel documents As Malta is an EU member since May 2004, there is no restriction for EU nationals to tour the country. Many country nationals can stay for up to three months as tourists in Malta with a valid passport with no visa. Check with the embassy in the home country and get a complete list of the documents required before traveling to Malta. Foreigners, who wish to reside permanently in Malta, must apply for a residency permit. Proof of sufficient funds or annual income has to be provided as a support document when applying for this permit. If a foreigner wants to work or start a business in the country, government permission is required. Malta may make a difference If you are looking for real estate in a sunny country, rich in culture, Malta is the right choice. Low taxes, relaxed life styles and popularity of the English language are very compelling reasons for a UK citizen to consider looking for a second home in Malta and Gozo islands.
Leo Fogarty is the CEO of overseas property sites, www.overseas-property.ie and www.overseas-property.co.uk . They provide services to developers, agents, financial institutions and investors.
Low-Ball Offers and Home Value
Ok, let’s get down to the nitty-gritty on making an offer on a home. This process can be quite different depending on how the local market looks at the time of the offer. In a seller’s market there may be competition for any given home and competing offers can drive the price of a home up quickly. However, the national market has definitely shown signs of moving towards a buyer’s market and that is a whole different ball of wax. In a buyer’s market it is possible for the buyers to go a little overboard, or “underboard” as the case may be when making their offers. Just because it is a buyer’s market does not mean that sellers are going to accept an offer that is less than the actual value of the home.
Low-ball offers are difficult things to deal with. Usually they are received with scorn by the sellers who cannot believe that someone would make that low an offer. For instance, offering $75-100k less than the asking price is not likely to be well received by the seller. Chances are that if an offer that low is made then it will be under the appraised value of the home and the seller would be taking a loss in selling it. A buyer’s market can mean some great deals on homes but it does not mean that sellers are willing to let their homes go for less than they are worth. There is one good way to avoid insulting sellers by low-balling their home. Ask your realtor what homes are being valued at in that neighborhood. Once you know this information you can tailor an offer that will be seen as valuable and fair.
The funny thing about low-ball offers is that every now and then, they are accepted. Either out of a desperate need to sell or perhaps relocation needs to be done quickly. If you can find these sellers then you may be able to get away with making a lower (yet not insulting) offer. Networking with your realtor is the best way to deal with these situations as they will be better equipped to gauge the seller’s situation and how quickly they want/need to sell their home. Generally if someone is desperate to sell then your realtor should be able to recognize that and inform you of the situation. Just keep in mind that ever a desperate seller will bristle at getting a dismally low offer.
Lee Cameron is a professional REALTOR serving the <a href="http://www.leecameronrealtor.com/">Orlando real estate</a> market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on <a href="http://www.leecameronrealtor.com/">homes & properties in Orlando</a> contact Lee today.
Accruing Equity and Home Buying
Currently the world investment market is shakier than ever before. Stock markets are not the stable producers that they once were, mutual funds and other managed investments are great if you can lock away a large amount of money for a long period of time, so what is left for the average investor? Home purchases. Over many years homes have have continued to rise in value and along with that rise has come a security and ROI that is not available in any other form of investment.
Climbing the equity ladder is one of the oldest and most well known investment strategies and its popularity is largely due to its relative accessibility. Once you are set up with a mortgage, as payments are made your net worth increases as your are now building equity. Equity is a powerful leverage tool that can be highly useful in the years to come. The most noted way of gaining personal wealth is by paying a respectable amount on a first property and then leveraging the equity to purchase another, and so on. Essentially you can work the situation so that the homes you purchase are paying for themselves via rentals and all the time, your personal equity is increasing. With increasing equity your earning potential is almost unlimited. It can be quite easy to become a professional landlord/real estate investor if you plan these purchases properly and ensure that no single property or purchase has the ability to “upset the bank,” so to speak. You never want to put your investments in jeopardy by allowing one to have the ability to break you.
More than just a few people have made their fortunes in the real estate market and there is no shortage of individuals who will try to sell the secret. Watch TV for a few minutes at almost any time of day and you will likely see an ad or two. The secret is simply good planning and intelligent purchases. Take the time to pick good tenants for your properties and make sure that you maintain them well, good properties and attentive landlords equal good, reliable tenants. Good reliable tenants equal an investments that has little trouble paying for itself over time.
Carey Frankel is a real estate agent and associate broker serving the Jacksonville, Florida real estate market. For elite service and accurate information on Jacksonville Homes contact Carey or visit online at www.frankelrealtygroup.com
Common Home Buying Mistakes
In thinking about life’s most rewarding experiences, buying your first home ranks right near the top of the list. For this reason buying a home should be a memorable event, but for the right reasons. When it comes to home purchases many people have the tendency to lead with their hearts and that can cause some definite troubles. In this article we are going to explore some of the more common home buying mistakes and how the average buyer can avoid them and other purchasing pitfalls. Planning is really the bottom line in major purchases. If you take the time to plan every step of the process then there should be no unpleasant surprises or unexpected crises. If this is your first time buying then it’s a good idea to get some advice from an experienced buyer as well as from your agent. The more info you have the better.
Alright, let’s start looking at some common buying mistakes. One of the most common is over-excited buying or impulse buying. Keep in mind that there are a lot of homes out there so you don’t have to buy the first home you look at. consider your options and don’t jump at a home simply because you like the first thing you see. How can you know that this is the home for you if you have not seen others yet? Buying a home is indeed an exciting time but you need to keep your head on as there is a lot of money involved in this. On the other side of the equation, don’t ever “settle” for a home when there are better options available. They may require a bit more money but you still have to be happy with the home you have purchased and “settling” for a home is not going to lead to happiness.
Another common mistake is purchasing too much home. This can easily get a new home owner into a disastrous situation where they cannot afford to make the payments on the home and you can see what the final outcome of this will be. Once again, careful planning is the best deterrent for this kind of situation. Coming to terms with your financial situation previous to purchasing the home is also a necessity. Be realistic about your ability to pay the bills and the mortgage and have money left over for life’s other little necessities such as food.
Craig Gleason is a lifelong resident of the Chautauqua Lake area. Craig and his wife Nancy are realtors who specialize in Chautauqua Lake real estate and properties in the Chautauqua Lake area. For more information on this amazing areas homes, contact Craig & Nancy today or visit us online at http://www.chautauquarealestate.com/
Buyer's Agents And FSBO
There is a real wave of FSBO properties sweeping the nation. The question that needs to be asked is: “As a buyer should I use a buyer’s agent to purchase a FSBO?” And the answer is a resounding “Yes!”, Let’s look at the situation this way. Sellers who have chosen to sell their homes themselves don’t have the selling savvy of a Realtor behind them. Therefore a few assumptions or educated guesses could be made about the property. One should ask whether or not the property is correctly priced for the area and what it is offering. Typically when a Realtor lists a property they perform some careful market comparisons to ensure that the home is correctly priced. This will ensure that the home is competitive and not overpriced.
Another thing that most Realtors will do when listing a home is take a close look at the home itself and let the seller know what should be upgraded or fixed in order to make the home more appealing and to justify the asking price. Now, a seller can easily do this themselves but it is always nice to have a professional opinion in such matters. This brings us to the idea of utilizing a buyer’s agent when considering the purchase of a FSBO property. Just like any other property purchase a buyer’s agent will do the legwork of arranging the deal, offers and negotiations. Sometimes FSBO negotiations can be more complex than the average real estate transaction as you are dealing directly with the seller who has a personal and emotional stake in the home that is for sale. It is quite easy for emotions to run high during the process and a Realtor or buyer’s agent acts as a layer of insulation from this stress.
It can be pretty easy to get caught up in everything that is going on during a real estate sale, especially when dealing with an FSBO sale. As there is no broker involved all dealings have to go through the seller on their own time and under their own conditions. Sometimes these conditions can be somewhat restricting and the last thing you need is to get involved in a sale with a seller who is too emotionally involved in their sale. Let a buyer’s agent deal with the transaction and you should find that the whole process is much smoother and stress-free.
Joshua Keen is a real estate agent located in Atlanta, Georgia. The Keen Team specializes in the sale and purchase of Intown Atlanta real estate. When looking for Atlanta MLS Listings, contact Ben and Joshua for the best Atlanta realty services!