Buying property in Malta as your second home is an achievement. Here are some tips to keep in mind as a second time buyer.
Buying property in Malta as a second time buyer is a financial and personal achievement, but there are things you should keep in mind before finalising that purchase.
Investing in a property for sale in Malta is sometimes referred to as “the biggest investment you’ll ever make,” yet it isn’t uncommon for individuals to purchase a second one. And, while it frequently proves to be a highly profitable investment, there are a few things to bear in mind before embarking on this journey.
Be honest with yourself about your finances. Like the first time, purchasing a second home is no easy task, especially if you haven’t paid off your first. Sit down and write a list of your monthly expenses; consider if you want to have (more) children – as this will increase the amount of cash on hand you’ll require.
Calculate how old you’ll be when you’ve paid off both residences – do you really want to work until you’re 85? Can you really afford another mortgage with all of this in mind? If you’ve done your math and everything adds up, go for it.
Do you wish to buy a property in Malta like a summer home or an apartment? If you want a holiday property in front of the sea, think about how you want to spend your vacation – do you want to stay in Malta, have a property in Gozo (or vice versa), or travel abroad? If it’s the latter, don’t forget to look into the laws and taxes that apply to all types of real estate types in your selected location. You may also think about renting it out for the rest of the year.
Malta is the perfect place to buy a property for sale. In fact, if you’re considering a rental investment, your best chance is to purchase a house in St Julians, Sliema, Bugibba, or even Attard, among other popular rental locations.
First, find out what the rental yield is and compare costs! A one or two-bedroom apartment would reportedly yield a higher rental income, but can you afford a home in these areas? How confident are you that the house you’re buying will rent out if it’s not in these areas? How long do you think you’ll be able to go without a tenant? Consider the worst-case situation and move backwards from there. Consider the worst-case situation and move backwards from there. Profit is always better!
Keep the taxman in mind. During the last 2021 budget in Malta, the stamp duty rate decreased to 1.5% on the first €400,000 of property worth and the income tax on capital gains reduction to 5% on property transactions will not be extended and will expire in June 2022.
Moreover, a refund of duty on the first €86,000 of the new property (the first €150,000 for people with disability or their guardians). Learn more about how you, as a second-time buyer can benefit from the 2021 budget proposals.
Being objective as to why you want a buy property in Malta for the second time is fundamental to making the most of it; so is being true to yourself as to whether you can afford it or not.
If you really can and genuinely want one or circumstances to allow you to purchase another type of home, then go on and go forth! Done correctly, a property for sale, as a second time buyer, can be a brilliant investment and great fun as a home-away-from-home, so it’s well worth considering.
Consult and hire a real estate agent to help you make the best decision, as well as simplify the second-time buyer process. Don’t just choose him/her because they’re your friend. Make sure they know their business. Discover the types of properties available for second time buyers on our property market.