Common Mistakes Made When Purchasing Property

It can easily be said that purchasing real estate in Malta or Gozo is one of the biggest investments several people will ever make. After the hassle of saving up, or possibly getting the purchase financed, you certainly want to avoid making any mistakes that will counter all your hard work. To help you, we’ve compiled a list of common mistakes or things to look out for when purchasing property on the Maltese islands. This is so we can help you ensure your transaction goes through as smoothly as possible and to avoid any hidden costs you can’t afford.

Real estate investment

Many people usually buy property for sale in Malta with a long-term investment in mind, hoping to re-sell in a few years and make a profit despite making no alterations to the property. In other words, they buy property in Malta as an investment either to rent (buy-to-rent) or renovate and sell it at a profit. This can be true for some properties; however, properties do not equally increase in value over the years – certain homes in Malta offer a better return on investment, and many make the mistake of forgetting this fact. Always be sure you carry out sufficient research, especially if you’re planning to “cash in” a few years down the line.

Borrowing from the bank

If your purchase is being financed by a bank, ask the bank to give you an actual borrowing amount. Calculations on their websites are indicative, not actual. Meet with the bank before you budget. And remember: there’s no need to spend the full amount borrowed – if you can work with less, then do so. Once you have a borrowing limit from the bank, avoid changing your financial situation, especially where your credit rating is affected. For example, if you decide to take a car loan, your borrowing limit for a home loan would then diminish significantly.

Conduct background research

Be sure to carry out background research before investing in real estate in Malta. Make certain that you are aware of all the costs involved and budget accordingly. Nobody likes surprises when it comes to spending money.

Real estate agents’ assistance

A common mistake made by those buying property in Malta is to work alone. When in doubt, consult with professionals to back up your decisions, including architects, notaries, banks and real estate professionals. 

Several people avoid working with real estate agents to avoid paying a commission, but they fail to consider the fact that one mistake may cost them more. If you only take medical advice from a doctor, it stands to reason that you would only take real estate advice from real estate professionals. Working with a real estate agent in Malta, and placing full trust in them, ensures every obstacle is tackled along the way – they’ve handled several transactions and there’s nothing they haven’t heard before. Keeping important facts secret from your agent will only confuse things when it comes to signing a Konvenju (Promise of Sale). Read more about how a RE/MAX Malta real estate agent can simplify the buying process and get on the property ladder.  

Speak to an architect

Once you’ve found your ideal property, you should speak and get it inspected by an architect. Who can better tell you what problems your property in Malta or Gozo may already have or may face in future? 

Learn more about how an architect can help you when buying a hot property for sale in Malta or Gozo.

Research the property’s selling points

Finally, be sure that all the property’s selling points are properly researched before you make an offer. For example, if a seller tells you that his property for sale has a green area near it, and can guarantee that the views will always be there, don’t simply take his word for it. In the case of plots, you may be told that Planning Authority will grant a permit to build certain properties – again, research this and get the facts right before committing to anything.

Estimating costs and assumptions

Another dangerous mistake made is getting estimating costs rather than actual quotes. If the property you’re looking at needs work, always gets the works quoted. This will help you negotiate the price better and save you the panic of underestimating costs and exhausting your budgets. If you’re looking to purchase a large property in Malta or an older hot property for sale, be sure you constantly have the funds to maintain it. If you cannot, you may be forced to sell and possibly lose money if the condition of the property has deteriorated.

At the end of the day, it’s all about having your facts in order. Never work on assumptions or estimations and, when in doubt, always consult the experts. Well-armed with proper guidance and facts, you’re practically guaranteed to have a problem-free purchase from start to finish.