To rent or to buy? That is the real question. Part 1
Picture this- you’re a young professional, finally found a stable job that is sustainable and offers you a decent salary with a dream of moving out of your childhood home. Then comes the question of the ages ‘Should I rent or buy?’ This is a commonly asked question many potential buyers especially first time buyers ask themselves when considering whether to make the commitment to move out of their current residence and make the first step towards their new future.
Buying your first property in Malta or Gozo is one of the biggest life events and financial decisions you will commit to, which is why it’s important to be confident in your final decision. Use this to help guide you make the decision between buying or renting your first property and consider contacting real estate experts at Zanzi Homes to find the guidance you need from like-minded people with your best interest at heart.
1. Pros of buying a property in Malta or Gozo.
- You will have full control of your own space- how to decorate your home will be completely up to you.
- If you are a first time buyer, be sure to check out Zanzi Homes’ exclusive First Time Buyer package where you could save up to €13,000 - yes, you’re welcome!
- The gradual increase in value of your property will benefit you in the long term when you put your property up for sale on the Maltese market. The value you add to your property over time will allow you to eventually trade up for your next investment. It’s never too early to invest in your future. With property, the saying ‘start ‘em young’ counts!
- Monthly loans, especially for a first-time buyer, may potentially match or be cheaper than monthly rents. Aside from the obvious advantage that by the end of paying off your loan you’ll be left with a property of your own, contrary to renting out a property where you’ll end up with less in your bank account and nothing tangible to show for it.
- This could potentially help you in your retirement plan as the residence retirement scheme was put into place as an incentive to invest in the property market for locals as well as EU nationals. CC Malta breaks down the scheme in detail for both local and foreign nationals
- Owning a property means it can be passed on through your family as inheritance. So start building your legacy!
2. Cons of buying a property in Malta or Gozo.
- The process of buying a property differs from buyer to buyer. A first-time buyer process is different to that of a previously experienced buyer. The general deposit asks for 5% of the price of the property.
- Be aware that there are other costs associated with buying a house other than the price of the property itself. These being notary prices, home insurance and inspections costs. Be sure to do your research on how much you’d need to save up before you can start the process of purchasing your property in Malta or Gozo, especially if you’re a first-time buyer.
- The maintenance costs of a rental property fall under the responsibility of the owner whereas owning a property means you’ll have to deal with maintenance and repairs. The balance gives a great break down of how you should budget for maintenance costs for your first home in this article.
- There is a probability that the value of your property will increase over time, although it is never guaranteed as markets fluctuate and depend on several external factors.
3. 3 of the most Commonly asked questions, answered
- Are you planning on living with someone else? This will be a huge deciding factor when choosing between buying your first home or renting out an apartment. Paying off a joint loan and paying a monthly rent with another person will take off alot of the pressure and make the process less daunting.
- How long are you considering living in your next home? If you intend on living in a place for a short period of time and then wondering off to explore the rest of the world, tying yourself down to buying your first property may result in certain restrictions that you should be aware of. Both financially and physically, not being able to spend money as freely as you would normally and not being able to leave due to home maintenance are just a couple.
- Finally ask yourself, what do you really want?
Here are some more of the most commonly asked questions by first-time buyers that you probably need the answer to.
Main blog photo courtsey of Christophe Faugere