Average housing costs in Malta 157 €

I'd guess most people own their property (often given as a wedding present), or have a very small mortgage, hence a very low average rent/mortgage payments - quite a few who rent are on ludicrously low controlled rent (like € 100 per annum) - I'd guess atleast half the €157 is utilities

Actual figure for electricity/water/gas was about € 60 in 2008, so I guess € 75 now

data doesn't appear to include mortgage payments

Seems so ! Interest only.

That's the way all the housing bubbles started. Hoping that an increase in value will make you rich. -))) What will happen when interest rates go up and propety values don't ?

Good point George. I hadn't noticed that.

Cheers
Ricky

One of my Maltese co-workers was given some shocking (to me) advice by a relative of his (who apparently audits several very large companies in Malta) - It was exactly the kind of advice he wanted to hear (buy as much/many properties as the banks will lend you money to allow you to buy, rent them out unofficially, the banks will never repossess...they never do in Malta).

Tim

hammersfan wrote:

One of my Maltese co-workers was given some shocking (to me) advice by a relative of his (who apparently audits several very large companies in Malta) - It was exactly the kind of advice he wanted to hear (buy as much/many properties as the banks will lend you money to allow you to buy, rent them out unofficially, the banks will never repossess...they never do in Malta).

Tim

It's exactly the good way to create a Real estate bubble...

everything is ok ... until the bubble explose
see London, germany, usa, etc

No bubble to explode.
It's simply that over valued property has to finds its realistic price and people are more savvy.
Thankfully Malta is no Greece, Italy, Spain,UK .
Simple Formula - demand and supply. Demand will always be there, land is limited and property owners are not compelled to sell.
If God forbid,there's a world crisis that would painfully hit   ,prices would  go down relative to salaries and cost of living.

Malta still has a mountain of empty properties and still building more and more.....and the prices here rarely go down....when will it end...?

Maltese housing is overvalued, the last part of it created by Malta adopting the Euro, which triggered massive amounts of Lm cash invested into property, so as to use up Lm cash sitting under mattresses. Its partly deflated in the last 2-3 years, with prices down 20% plus, but there is more to come, given the tens of thousands of empty properties. Whether you label it a bubble or not (I do), prices are sharply higher than realistic valuations based on rental yields or multiples of average incomes.

The building ? Never, it seems

So, if there are thousands of properties standing empty and more are being built, how would property owners feel about being offered less rent than a propery is advertised at?  Is this viewed as insulting or is bartering accepteble?

Amanda x

depends on the owner - I had one owner offer a 25% reduction without even asking, another would't budge a cent - in the end went with the 2nd one as the owner was realistic at the outset - ie you need to know the fair price by doing research beforehand

Yes, it depends on both sides. If the price asked for is far too high in the first place it is not worth discussing.

We were able to get a 25 % rebate by offering a long term rental and a few months rent payment upfront plus making the impression that we will look after the property and not wreck it or cause major disturbance in the building. And the original price was reasonable!

In the end you have to feel comfortable with what you are getting and what you are paying so it will pay to have a feeling for the property market.

So if you want an independant opinion ask me. I usually ask expat friends what rent they are paying so that I can get a good idea of what the situation is like. You have to be able to compare.

Cheers
Ricky

157 euros!!!
I would like to see the width of this Gaussian. Because I will be paying 10 times more and only in rent (without electricity).

(-:

Whow !

You must be renting a really nice place for that much in Mosta.

But you have to realize that a lot of Maltese live in places with a low fixed rent ( since 40 years) or just pay interest and hope that their home increases in value.

Look forward to a nice BBQ at your nice place -))))

Cheers
Ricky

Can you help us with such price a rent for 2 weeks  ??? We are looking for a room rent for 2 weeks

Hi Galia,

it is an old post and it refers to the average rental in Malta and most renters in Malta are Maltese! The figure quoted has nothing to do with the reality of short/long rents for foreigners.

Renting for only 2 weeks is a short rent of a holiday appartment. It will depend on season, size and quality and location of the appartment. Sometimes you can find a short rent offer on this forum in the Housing section.

But don't expect a price for two weeks anywhere near to the price quoted in the publication. You will be more likely looking at a price of 300-500 €/week for a holiday appartment or even more.

Cheers
Ricky