Buying property on plan in Malta is a good way to invest money because it is a stable and safe investment. It can provide you with a steady income and is also an excellent way to build up equity. Though some might be familiar with the process of buying property from the experience of buying their first house, buying property on plan is a different game. The whole process is different than one would expect. You can not make sight visits with an agent, the deposit is much more than 10%, and getting a bank loan to cover the rest will be difficult. Also while a built up property is normally yours after a 6-month contract, property on plan will be a long ball game.
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The Benefits of Investing In Maltese Property
The benefits of investing in Maltese property are many and varied. The Maltese Islands offer a safe and welcoming environment for investors. Malta is one of the most popular tourist destinations in Europe, with over 2 million tourists visiting every year.
Investors can benefit from Malta’s stable economy, excellent infrastructure, and its strategic location on the Mediterranean Sea. The Maltese government is committed to making Malta an attractive destination for foreign investment with a focus on creating jobs and innovation.
What does Buying Property on Plan Involves
Buying property on plan involves purchasing a property that is currently under construction and is expected to be completed in the future. The buyer will have to wait for the property to be built before they can move into their new home.
It’s not just about paying for a property and waiting for it to be finished, there are also other costs involved, such as the deposit, stamp duty, and legal fees.
This type of purchase usually has a higher risk as there is no guarantee that the house will be finished in time or that it will be what was agreed upon when signing up.
The Risks Of Buying Property On Plan
Buying property on plan is a risky decision because the buyer doesn’t get to see the finished product before they buy it. The builder might not have used quality materials, or they might have made mistakes in the design. This means that buyers are taking a huge risk when they buy property on plan and there is no guarantee that it will be worth what they paid for it. Due to these risks involved banks are more reluctant to give loans and could be subject to higher interest rates. Also, property developers would normally re1quire a higher upfront deposit sometimes up to 40% on signing of the contract.
The risks of buying property on plan can be reduced by doing research into the builder beforehand, checking their credentials, and finding out what projects they have done in the past. It’s also important to go and visit any properties that are currently being built so you can see how things are progressing firsthand.
The Advantages Of Buying Property On Plan
Buying a property on plan means that the buyer is not paying for the property until it has been built.
This type of transaction is not without risks. For example, if the developer goes bankrupt or defaults on payments, they may not be able to complete the project. The buyer would then have to find another developer to finish the project.
The advantages of buying property on plan are that there are no mortgages and no interest rates associated with this type of purchase. It also gives buyers more time to save up for a down payment and they will have more flexibility when it comes to their move-in date because they will not be locked into a set closing date like when purchasing a house off-plan. The buyer can have a say about the finishing and asks for some alterations and customizations to the property.
But mainly buying property on plan if done correctly comes with better financial rewards. In general, these type of properties tends to be a better deal as the buyer has the lion’s share when it comes to which unit he is purchasing. For example penthouses and flats on the higher floors or better views tend to be sold beforehand. By being one of the first investors in the project will allow you to have a better hand when dealing with a price with the developer. This is especially if you are in a position to put in a higher deposit or secure more than 1 unit.