Price is a key factor when buying a villa as a real estate investment and is closely related to the potential of the area. Investigate where the prices of properties with characteristics similar to yours, located in the same area, and find out if it has good future expectations
Do not pay more than 30% or 35% of your salary
The budget that you have for the acquisition of a property must be in accordance with the economic situation in which you find yourself. Before applying for any mortgage loan, assess what are the monthly expenses that you will have to pay. Once done, the ideal is that you do not pay more than 30% or 35% of your salary and that you save extra money for extraordinary expenses or possible unforeseen events. For the all Villas for sale in Malta you can now expect the best.
Do a study on the mortgage that suits you best
Fixed rate or variable rate? Analyze the prospects for the evolution of interest rates. The big difference between fixed-rate mortgages and variable-rate mortgages are the interest from the second year, when the revisions of the second start based on the variation.
With a fixed mortgage you will pay more in interest and commissions from the beginning, but you will avoid revisions to the mortgage interest rate (and therefore a potential increase in the monthly payment). With a variable rate mortgage you will pay less interest at the beginning of the loan and fewer commissions, but the monthly payment is subject to change.
The percentage of fixed mortgages contracted is increasing, but you should also take into account that economists such as those at Malta estimate will close 2021 at -0.45% and 2022 at -0.42%. You must assess which option seems most interesting to you.
Collect all the information with financial entities
An essential requirement when buying a villa as an investment is to meet with different banks, collect all the information they offer you and compare them to see which option is best suited to your needs.
Evaluate what are the advantages of buying a villa to reform
When you find the property you want, assess what are its weaknesses and strengths, it will help you make a meaningful decision.
You must bear in mind that, most of the time, a reduction is applied to the final price and that an apartment or a house in good condition is always more profitable in the long term, although you can buy an apartment to reform and extract profitability from both the sale as of the rent.
Review all the taxation that accompanies the purchase of the property
You are clear about what you want: to buy an investment floor . Now, you must take into account what are the taxes that you will have to face when buying it and renting it later.