Buying Advice For Foreign and Local Clients
See also Sales
Advice
C
One of the attractions of buying a property in Malta or Gozo is the
locals’ hospitality. Look for properties located amongst the local
inhabitants. Neighbors will quickly become friends who will gladly keep an eye
on your property while you are away.
C
Malta and Gozo are two very small islands (246 square kilometers and 67
square kilometers respectively) and nowhere is very far away, however it is a
good idea to have a property that has close access to public transport if you do
not have a car.
C
Practically everybody from a taxi driver to a hotel receptionist knows
someone who is selling a property. Be careful and go to professional people, who
can offer you the best choice of properties, give you all the relevant
information and assist you in the whole process. Leading and long established
professional estate agents are equipped to assist you from start to finish at no
cost to you. The agent’s commission is paid by the vendors.
C
The location you choose to look for a property should depend on the
reason why you want to purchase a property in Malta and Gozo. You will find
properties located both in holiday areas and others, which are located in more
peaceful surroundings, like the quaint villages situated inland, although, still
only approximately 15 minutes away from the nearest beach.
C
Make sure you view a selection of properties before deciding on a
property. Leading estate agents can provide a wide and varied selection of
properties ideal for holiday, retirement and investment purposes.
C
Try to avoid buying shell (unfinished) or unconverted properties. Chasing
after workmen could be a nightmare unless you are living on the island or unless
the vendor agrees to finish or convert the property for you.
C
Buy a property where the locals buy. This will guarantee a good demand in
case of re-sale.
C
Town Houses and Village Houses require maintenance and need to be lived
in. Ideally, a holiday place should be an apartment, which you can lock up and
leave. You may not wish to spend precious holiday time doing up your property
while you are there. Large estate agent do offer property management services,
which include inspections and maintenance works when necessary when you are not
in Malta.
C
Banks are eager to provide finance for property purchase at attractive
mortgage rates secured on the property itself. Leading banks are HSBC and Bank
of Valletta. Estate agents will also be able to assist you should bank finance
be required.
C
Once you find the right property, the first step that you should take is
signing a preliminary agreement (promise of sale) before a Notary Public. This
will secure the sale at the agreed price and conditions. The vendor cannot
change his mind on sale, price or conditions. There is no gazumping in Malta.
C
The process of transfer of property is very easy and safe. A preliminary
agreement is written out in English by a Notary Public and signed by both seller
and purchaser. It is important that you ask any questions or clarifications, if
you have any, before signing.
C The Notary will carry out searches between the signing of the preliminary agreement and signing of the final contract to ensure that there is clear title to the property. However the Notary does not check if there are valid building permits, so ask the estate agent to obtain a copy of the building permit for you.
C It is quite common for large projects to be monopolized by the "BIG" Agencies. Many of these projects would have a variety of prices, but beware, it is not uncommon for these prices to be inflated at first, hoping for a first catch. So always wait a while before "investing" in a "NEW" project (as is commonly said). Ask around, and get feedback from people in the locality before buying, many of these projects are sold to speculators, who push the prices through the roof, and these unfortunately attract the wrong people.
C Contact an accredited Real Estate Agent, preferably one with affiliated to an Association of Estate Agents.
C Always read the contract, we at Baron Properties have always sought prudent and professional advice from a well known Legal Office and Audit Firm.
C
Some so called "Owners Sale" companies offer very cheap and LOW
commission rates. There is no such thing as cheap, read the following excerpt
and notice how one can be enticed into the wrong deal;
[Actual
wording] For all intents and purposes, it is hereby being
declared that this agreement is valid up to 24 months from __________________
and henceforth the amount of Lm __________________________________ shall be
payable as aforesaid should the property be sold at any time between
______________
and
_______________ irrespective of whether the said property had in actual
fact not yet featured in the above mentioned periodical and irrespective of
whether X owners sell or transfer under whatsoever title the said
property, either directly or through the intervention of any third party.
This
contract will bind you for 2 years, whether you like it or NOT.
C Never accept a Sole Agency agreement without a valid reason and not before asking for an "OUT" clause.
C Always ask for a second opinion.
C When valuing a property, be sure the Agency gives you a valid valuation, and be sure to back it up. Some agencies purposely inflate the price to WIN you over as their client.
C Most agencies ask for a 5%, but with some bargaining, some of the smaller agencies would rather reduce their commission than loose a good property.
C When looking to place your property on a Real Estate Agencies database, don't be blinded by the "Marketing" they throw at you, ask them i) to tell you when your advert will appear next ii) make them give you a follow up call before the end of the month. Always choose a smaller Agency to weigh the differences, most times a smaller agency would advertise your property immediately.
C Never give out a key if the property has any valuables you would miss or if you think they might go missing and dearly missed if not properly insured.
For more advice you could contact us by sending us an e-mail or by calling us on the numbers indicated below.
TEL: +356 2122 7440
Mob: 9944 2756 / 9944 3311
Baron Properties Ltd is a member of The Federation of Real Estate Agencies Malta (feamalta.org) and The National Association of Estate Agents (42032)