Malta is among the hottest destinations for property investors. The place is known for its beauty and offers a diverse range of locations with different property types. Malta has something for everyone, whether you plan to buy an apartment in Sliema or an extravagant villa in Madliena. If you are buying your first investment property in Malta, keep in mind that the buying process in Malta is strictly regulated. It doesn’t matter if you intend to buy a future home or want to relocate to the country.
Understanding the buying process will help you accomplish your dream of owning a property in Malta. The entire property buying process in Malta is quite different from other countries since there are a series of steps involved in the process. The whole procedure may require up to 3 months so a little bit of planning ahead of time can go a long way to make the process easy for you. Here are top 10 tips to buy your first investment property in Malta:
- Search the Right Property
Do some research to select the area you want to invest in. Once you have made a decision, will have to need to contact agents to make sure you scan the whole market to see the properties available in the area.
- Make an Offer
All offers for buying Maltese property are made in writing. The written offer will then be presented to the owner to initiate a response. Make sure all offers include a clause indicating the offer is contingent on signing a legal agreement.
- Sign the Initial Contracts
When both the seller and the buyer agree on a price, the initial contract referred to as ‘Promise of Sale’ has to be signed. It is a legally binding document detailing the property and sale. A 5% deposit has to be paid on the day of signing this agreement
- Observe the Cooling Off Period
There is a weeklong cooling off period after signing the initial contract. During this time, the buyer has the option of going back on the purchase without facing any penalties.
- Make the Deposit
By Law, you need to make a deposit of generally 5% on the property. Once the cooling off period is over, the buyer will forfeit this amount if he decides to pull out of the deal.
- The Conveyancing Process
The process has to be executed by a Notary and takes about 3 months to complete.
- Visit The Property
Check the property to guarantee all elements of the property including fittings and fixtures are fine on the day of completion, or the day before. It is advisable that you take an architect to evaluate the property
- Make The Final Payment
On completion of the deal, you need to make the final payment to the Notary and have the deal signed by both parties.
- If You Are Single…
If you are an unmarried couple, it is important you buy on a joint basis to protect the interests of each party. This does not mean that you cannot buy a property on your own sole name, but your wife and yourself have to sign a separation of assets agreement first.
- Seek Assistance
Learn all about signing a sale and the purchase contract which will be prepared by an estate agent. Agents act on behalf of the vendor so make sure the contract is equitable. Moreover, you must only sign in the presence of a notary.