On Friday 8th June, the Maltese government unveiled a multi-million post COVID-19 mini budget which saw several incentives to both buyers and sellers, in the recent announcement of the sorely awaited for government measures to assist both buyers and sellers in this sphere. The newly introduced measures will help stimulate the property market and those who are trying to purchase a property for the first time.
Some of these measures mentioned within the post COVID-19 Malta Mini Budget include;
Property contracts that are finalized between now and March 2021 (with a capped property value set at €400,000) shall be subject to:
i) A reduction in property tax payable by the seller from 8% to 5%;
ii) A reduced stamp duty rate of 1.5% from 5%.
This move could motivate the seller to be more negotiable seeing a small drop in property prices which would unquestionably entice the buyer into purchasing the subsequent property. In an attempt to further assist first time buyers, the separate first-time buyer’s scheme will also be adjusted so that for those who had bought a garage would still be eligible for the scheme.
Ultimately the government is giving a hoist to those wishing to step onto or further up the property ladder and would make those of a lesser income less dependable on social housing, creating a win-win situation all round.
Added to the new measures is the 10% Deposit Scheme with the scope of which is to assist those who although are eligible for a home loan do not have the required 10% upon “konvenju”. The deposit will be provided by the bank through a personal loan by the bank, payable within 25 years. The Housing Authority is to pay the interest on the loan for the whole period of 25 years. With this scheme the bank will lend up to €175,000 maximum on finished property or for shell property finished within liveable state but not exceeding €175,000.
with the scope of which is to assist those who although are eligible for a home loan do not have the required 10% upon “konvenju”. The deposit will be provided by the bank through a personal loan by the bank, payable within 25 years. The Housing Authority is to pay the interest on the loan for the whole period of 25 years. With this scheme the bank will lend up to €175,000 maximum on finished property or for shell property finished within liveable state but not exceeding €175,000.
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