The first-time buyers’ market

Are property prices too high for the local market, and especially for first-time buyers? This is one of the main questions that keeps being asked to estate agents.

The answer is that there’s a plenty of realistically priced properties on the market for sale, but these are spread in all the towns and villages; not concentrated in one area.

First-time buyers are very choosey and want the "ideal" property with the exact requirements of their choice, and this is where the going gets tough. Their expectations are high and they often expect to buy "the home of their dreams" from day one. This is not just a problem of today. It has been so for the last 40 years and probably even before that.

In the past, the property market was completely different. There were very few properties for sale, let alone in the correct price range, with the correct accommodation and in the correct location.

The only properties available were on long leases and these were spread around everywhere. Young couples literally took whatever was available. This meant that people from Sliema, for example, went to live in Tarxien, Paola, Fgura, Msida, Gzira, Guardamangia and other "far away" places.

Today there are many, many more choices of areas and properties, and quite honestly, still at very good prices, as long as expectations are not set too high. There will always be a chance to purchase a better home at a later stage when more money is saved up, jobs are more secure and expectations more definite. Young couples will also find that their requirements change after having owned their first home and discovered exactly what it is that they would really be happier with.

Leading estate agents have thousands of properties to choose from, and these properties are either brand new or re-sales from people who for one reason or another have to sell or are upgrading to a better place because they are financially more able to do so.

This section of the market is a very delicate one which has to be taken care of very rigorously because it is vital to the success of the whole property market. If the first time buyers’ market is in trouble then the whole property market could be in a crisis. Happily in Malta and Gozo there are still plenty of properties for the first time buyers, as long as these buyers are content with what is available.

If the local first time buyers’ property market is compared with those of other civilised countries, then one would see how the expectations of the local first time buyer is very much higher than in these other countries.

For example, most first time purchasers abroad are content with one bedroom, sitting room, kitchette and bathroom. Not so in Malta. First time buyers expect to start off with at least two or three bedrooms, situated in a prime area and finished to high standards. Not to mention sitting room, dining room, kitchen/breakfast and one or two bathrooms, and even a garden, study, garage, etc. Fortunately, such properties are in fact commonly found on the market to satisfy the local demand. Developers are now also building smaller units to cater for this market.

One very positive thing today are the numerous, attractive loan packages being offered by the banks. So with good borrowing facilities, and thousands of properties to choose from, there does not seem to be a problem with the first-time buyer market. By reducing our very high expectations to something more reasonable, we will be ready to settle down more quickly and happily.

Ms Grech Lupi is writing on behalf of Frank Salt Real Estate Ltd.