Masterclass in Real Estate
April 2019
An Introduction to Real Estate in Malta George Bonnici & Alex Papagiorcopulo Branch Managers Ibrag, Homes of Quality
Who we are and what made us do this? A real testimonial of what it takes to take that leap of faith!
Demand and supply of real estate in Malta • Interaction between Consumers & producers
[effect prices]
• Home Ownership…today stands at 80% [supply] • Liberalisation of Capital Markets 1990’s [demand] • The Development Planning Act of 1992 [constrains supply] • Removal of Exchange Control 1994 [demand] • Tax Amnesties (2002 – 2005) & Incentives 2014 [demand] • Malta’s accession into the EU in 2004
[demand]
• Relaxed Development Restrictions 2006 [eases supply] • The 2008 global economic crisis [constrains demand] • Buoyant Service Orientated Economic Activity – with inward migration; financial services, computer programming, legal and accounting services, gambling & betting; education; manufacturing - pharmaceuticals ; tourism; retail sector; construction & ancillary trades
Regulations covering real estate • White Paper – create an Authority to regulate the Building Industry • A code of ethics – covering conduct between agencies & clients • Professional service – market knowledge • Education and training (CEPI standards) • Legal Framework – commission rates
Why buy through an agency? • Biggest investment of your life – buy wisely • Knowledge – vast data base ; procedures • Time – avoid waste of time • Money – time is money; value for money • Heartache – lessen the emotional experience
A basic buying process flow
Need Recognition • Understanding what is really • • •
Required Wanted Achievable
Before setting out with a client (KYC) • Who is buying? • What is the purpose of the acquisition? • Is this a cash buyer ? • Will a bank be part of the transaction?
Searching & Alternatives • The Hunt Knowledge is :
- Power
- Time Saving - Money Never stop showing property until a client has signed a promise of sale
Negotiation Property consultants negotiate with buyers and sellers on a daily basis. Vendors and buyers may not necessarily be great negotiators or know how to react in certain situations This phase is a delicate one and can easily make or break a deal
Purchase Decision • The Close What is a Promise of Sale/Konvenju? Timing is of essence Subject to’s… Make sure all terms are agreed to beforehand so there are no surprises on the day Ideally circulate a Draft POS
Post POS/Konvenju • If a Bank is involved a process is initiated to issue a Sanction Letter (payslips, tax returns, identification, credit history, part time/other income, feasibility and timelines • Searches & architect’s job GB • EPC • Final deed – Commission Payable
Masterclass in Real Estate
April 2019
Thank You George Bonnici & Alex Papagiorcopulo Branch Managers Ibrag, Homes of Quality