What you need to budget when buying a home

What you need to budget when buying a home

Buying a property in Malta requires financial focus. Get your budget in order by taking account of these considerations from Zanzi Homes

For the majority of people, buying a property is one of the largest investments that they will ever make. And when looking to expand a property portfolio, the amount of headspace needed to accommodate an understanding of all commercial arrangements can be immense. 

Whilst an incredibly rewarding and worthwhile process, there is no escaping that you need to give consideration to budgetary requirements to ensure a smooth, successful, and stress-free road ahead. Before doing anything, it pays to do a thorough evaluation of your finances and budget. This will strongly determine the size and location of where you can buy. If things don't match up with what you are looking for, it's better to hold off until you are in a stronger financial position, rather than risk significant money strains further down the line. 

Below we take a look at some of the significant costs to consider, as well as highlight others that you may not even have thought about to help you formulate a comprehensive cost analysis ahead of buying your new home. 


Deposit and Stamp Duty for your property in Malta 

These are by far the largest costs that you will have to consider before buying property in Malta. On average, banks look for around 20% of the total property value as a deposit. Stamp duty can be an additional 3-5% on top of this, although depending on your financial institution, this can also be incorporated into your loan amount. 

Legal and Conveyancing 

Generally speaking, your next most significant expenditure will be on documentation processing and formalising. This is perhaps also one of the more important elements to take into account and not try to cut costs. 

After all, your solicitor or conveyancer will handle all of the documentation to ensure compliance, and act as the lynchpin between the bank and whomever you are buying the property from. Basically doing all of the difficult and confusing work so you don’t have to. They can also help break down all of the jargon and ensure that you are treated fairly in the deal. Therefore it pays to find someone that you know and trust that has the experience needed. Your banks will be able to offer guidance on this, but you can also speak to friends and family, or research online. 

Looking further down the road

Of course, buying a property in Malta, getting the keys, and moving in doesn’t mean that the costs stop there. With any property, there are ongoing costs that need to be calculated into your budget on a monthly basis, with the assurance that you can cover these once the dust has settled. 

Monthly mortgage and insurance costs need to be calculated, which will be largely dependent on the size and location of your property. Further to this, there are the monthly utility costs such as electricity and water, and any initial transferral costs from the previous owner so you don't have to pay reconnection fees. If you are purchasing an apartment, there will more than likely be an annual cost payable to the body corporate which will cover common areas and general maintenance. And whilst your insurance will cover larger problems that may arise with the property in general, it is strongly advised to maintain a savings or “rainy day” account to deal with ad hoc maintenance issues as they arise. 

The things you don't think about 

In the build-up to signing the contract, it's not uncommon to lose sight of the fact that you are actually moving house, and the logistics associated with this are a daunting task just on their own. 

If you are looking to furnish your new property in Malta, then costs can quickly escalate as you take into account kitchens and large furniture items which easily run into the thousands. And even if you have managed to build up a large inventory of home items prior to buying a home in Malta, you then need to consider costs associated with packing, moving, and unpacking on the other side. The more stuff you have means the bigger the cost. However, this is one area where you can look to save money if you plan on doing it without professional assistance. 

A safe estimate puts over and above costs, separate from your deposit, at between 5% and 11% of the property purchase price. This can be a large chunk of change to factor in, especially when looking at properties on the higher end of the scale. 

By going through a tried, tested, and established agent such as Zanzi Homes, you put yourself in a position to fully understand and prepare yourself. With a dedicated and experienced sales team and access to the largest database of properties across the Maltese Islands, gearing up to buy property in Malta has never been simpler. Even before scouring the market for your new home, our agents are positioned to help guide you through all of the steps and associated costs. With offices spread across Malta and Gozo, we are there to make sure you don't have to go it alone. 

David Brookes
Written By

David Brookes