Opportunities for Property Investments in Malta

Chryssa Tsiotsi | Published on 23 Mar 2011

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The first quarter of 2011 has seen investments in property on the uprise.
Property prices have, in the last year, decreased by 6,7%. This, coupled to the financial crisis resulting from bad investments in securities has rendered property a very interesting option. All this, linked to new opportunities offered by new types of bank finance solutions, have turned Malta property into a very enticing mode of investment.
With low mortgage rates and decrease in property values expected to keep rising even up to 2012, the global credit crisis is for first-time, favourable to home purchasers.
DHI Periti managing partner Denis Camilleri commented that such a decrease in property prices is no way as radical as when compared with other countries facing the crisis, adding that Europe weathered the property storm better than the US. "After all this turmoil, housing affordability is improving,” Mr. Camilleri said.
Besides, it is positively noted that Bank of Valletta, has introduced the Future Income Home Loan is aimed to tap into future salary increases of people who are in the early years of employment. Current practice was to calculate a loan on the applicants’ current income, restraining their borrowing capacity. The new product is aimed at applicants whose job entails a short- to medium-term advancement in their career with a proportionate increase in salary. BOV is currently assessing potential advances in the borrowers’ career progress, giving them increased borrowing at an encouraging reimbursement which is re-calculated in accordance with future pay increases.
All this augurs well to the common investor who traditionally invested in property as the most favourite investment vehicle with Maltese nationals and foreign investors alike.

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