A big or small house? Cash or credit? When looking for a house there are always doubts. So it is convenient to have a small guide of recommendations and tips to buy houses and not get lost. Purchasing a new or second hand home or flat may be your dream, but in another aspect it is an investment which you have saved after a long hard work. This is why it is your duty to take several aspects into consideration while signing the contract with the real estate agency. Indeed, it will not be the same to buy some Property for sale in Malta, than some in Saint Julian’s or in a small town. So, how to calculate the price?
How much can you pay to buy a home?
The first thing you should know is how much money you can spend to buy a house. Although, this can be an obvious issue looking at our economic situation. There are two rules that you must follow:
The indebtedness capacity – this type of quota is based on your net monthly income. Banks and real estate agents recommend not to spend 35% on the base salary.
The loan amount – the bank generally grants up to 70% to 85% of the home appraised value. In some cases this fee may be higher if you have guarantors.
How to calculate the price of a house?
Although on the Internet you have access to a lot of simulators that tell you how to calculate the price of an apartment, Flats for sale in Malta, villa, town house, premises, etc. The value of a house is officially determined by a document called Appraisal.
By average value of sale floor m2 by Provinces
The official appraisals are carried out by entities accredited by the Bank of Malta, these entities issue quarterly reports of the value per square meter of a property by zones. The sale price of a home by Province = (Average price per M2 built x Sup. Built with commons of your home)
By average value of sale apartment m2 neighborhood
You cannot explain the appraisal process of a home from a technical perspective, but if you can apply what is called the “comparison method”, you can understand the price value. So you will know how much an apartment is worth in the neighborhood. Obviously, other factors influence the calculation of an appraisal (State of the house, height, age of the building, etc.).