Interest-subsidy scheme for home buyers announced
Dr Chris Said.
The government has announced an interest subsidy scheme for first time buyers wishing to purchase a house from the private sector.
The scheme was announced by Justice Minister Chris Said and will be open for a year of for the first 300 applications.
They will benefit from an interest subsidy of up to 2.5% on borrowing from the banks of up to €80,000. The savings could reach €14,500.
Dr Said said the subsidy would be given for a period of between eight and ten years. The scheme would be administered by the Housing Authority.
Meanwhile, Dr Said said the scheme called Darek Faċli, through which the Housing Authority put 115 apartments, eight maisonettes and 98 garages on the market, had been very well received.
The properties were offered with subsidies of up to 25% on their commercial value. The Authority received 833 applications, which are now being processed.
Popular Stories
Old buses, drivers to return
Former Judge Ray Pace found dead
Updated: Minister apologises for...
Three new Nationalist MPs elected –...
Where’s Everybody staff is given notice
Updated - Director of Prisons submits...
Update 4 - Eddie Fenech Adami stable...
Update 3 - Woman trapped as car crashes...
Revealed...the face of a Maltese woman...
In Discussion
Old buses, drivers to return
Updated: Minister apologises for...
Updated - Director of Prisons submits...
Enemalta seeking minimum five year gas...
Protected birds shot and trapped as...
Mario de Marco, Zammit Dimech concede,...
PN postpones salaries as financial...
Updated - PM's offer to Opposition MPs...
No appeals board for first part of power...
41 Comments
Post comment
Please sign in or create your Account to post comments.
Michael Camileri
Jan 29th, 11:39
I wonder how many friends of PN were notified of this before us muppets were told about it?
Karl Abela
Aug 12th 2012, 12:48
I cannot believe the negative comments that I am reading. Its is so obvious that politics is ruining any sense of logic in this wretched country. 300 subsidies will not drive prices up. There are thousands of vacant properties on the market.
A Spiteri
Aug 10th 2012, 11:57
this will only help the property prices to go up again!
when government gets involved...it distorts the market!
Lawrence Fenech
Aug 9th 2012, 13:03
Sur Chris ghallhekk ghazil 300 applikant ghax daqshekk baqa granet ghal-elezzjoni u wara daqshhekk is-suppost cejca.
Charles Muscat
Aug 9th 2012, 12:37
This will push property prices up.
Cj Grech
Aug 9th 2012, 12:36
BUYERS BEWARE!!!!
Lest we forget this is not the first time schemes were offered just before an election...
http://www.timesofmalta.com/articles/view/20080817/local/frustration-mounts-as-home-scheme-applicants-remain-in-the-dark.221154
Many people got screwed over last time... don't make the same mistake to vote simply for a gimmick!
PG Caruana
Aug 9th 2012, 12:12
Jiena ħaġa nixtieq insemmi.... fl-opinjoni tiegħi dejjem li l-postijiet tal-gvern mhumiex worth it. dan għaliex ma jaghmlu xejn sew u taparsi jnaqaslek mil-prezz, imma dak li jnaqasslek tispiċċa toħorġu xorta waħda. u meta wieħed iċempel biex jitkellem magħhom ħadd mhu responsabli imbagħad.
ta' parsi jridu jgħinuk imma narhom kollha daħk fil-wiċċ jiena!!!
Mr R.E. Saliba
Aug 9th 2012, 12:07
Why first-time buyers?
Housing is well known to offer apartments to newly married couples who then save up to buy their own house.
It is a good scheme in general but limiting it to first-time buyers makes no sense.
mario scerri
Aug 9th 2012, 11:39
L-ewwel biex tixtri l-ewwel dar tieghek trid thabbat wiccek mal-burokrazija kollha w l-ostakli kollha li tista timmagina. Specjalment fejn tidhol il-MEPA u l-ARMS.
Mbad tigi taghmel skema ghal 300 xerrej biss. U hallina Dr Said b min tridu tidhku?
A Lepre
Aug 9th 2012, 10:25
There is always a catch somewhere. I was recently enquiring about current schemes - GALR and Interest Subsidy Scheme. Naturally, applicants must satisfy certain criterias, such as annual income should not exceed x amount - this also applies to single parents..... total value of of FINISHED property should not exceed EUR 120,000 (in case of the current interest subsidy scheme). Kind of a slap in the face considering one cannot do much with that kind of budget plus I also find it unfair that a couple with two incomes exceeding the stipulated limit of xx amount per person, would be eligible to benefit from the scheme, while a single parent exceeding the amount stipulated would not be eligible.
Robert Agius
Aug 9th 2012, 10:56
'Total value of of FINISHED property should not exceed EUR 120,000 (in case of the current interest subsidy scheme).'
We all would like to start off with a villa. What do you expect?? Subsidy on a property worth 250,000Euro for 1st time buyers perhaps?
'I also find it unfair that a couple with two incomes exceeding the stipulated limit of xx amount per person, would be eligible to benefit from the scheme, while a single parent exceeding the amount stipulated would not be eligible.'
And what about those who are single, or choose not to have a family, and want property, if you think that is unfair?
Jo Gatt
Aug 9th 2012, 10:18
Why only the first 300? Surely if it is an incentive for first time home buyers, it should be a standard policy for EVERY first time home buyer.
Did they even do research to ASK newly weds what they see as the biggest stumbling block to buying their first home?? The answer as always is NO! It seems that in Malta the CUSTOMER's needs don't matter.
Maybe it is just me, but as a newly wed, with no rich parents to support us, our biggest hurdle is to come up with the deposit and fees to buy a house, why not tailor-make packages which include this?
Maybe there is a bank out there with some hunger to corner the home mortgage market who will take this initiative?
G. Bugeja
Aug 9th 2012, 09:46
The election is fast approaching. But this time you and your party will not succeed in taking us for a ride. That time is gone and I hope it will never come back.
M Attard
Aug 9th 2012, 09:32
Tajba din. Mela jien xtrajt l-unika dar li ghandi bla ma hadd ma ghinni xejn; fadalli mill-anqas 4 snin ohra biex nehles mid-dejn; fl-istess hin qed nghin lil haddiehor jixtri d-dar tiehu permezz tat-taxxi li qed inhallas. Mhux gust li tiehu minn ghand wiehed biex taghtih lill iehor. Ser jghinni l-gvern inhallas id-dejn li fadalli?
Robert Agius
Aug 9th 2012, 11:01
Mhux gust li tiehu minn ghand wiehed biex taghtih lill iehor?
Er...are you telling us that a person earning 100,000 Euro a year, should pay the same amount of tax as much as someone earning 10,000 Euro a year?
M Attard
Aug 9th 2012, 14:42
@ R Aguis: I'm tellling you that I feel it's not fair that while I myself have to pay my own loans/debt on my own first house I am forced to help others pay their own debts. There were even times long when people used to be given generous plots of land with substanial sums of money. This was even worse. Of course I agree that the a person who makes more money is expected to pay more tax; but the tax collected belongs to the whole country; it has to be used to the benefit of ALL; not given to a few who have a loan like me. In this country there are those who are always benefiting somehow or other; and then there are those who never get anything.
J. Sciberras
Aug 9th 2012, 09:22
what is the logic of a 1 year limit or 300 beneficiary ceiling? what other criteria will be used to select the lucky 300? the unmentionable 'means test'?...which we only use fejn jaqblilna! how can govt. explain the notion of equity to that first time buyer seeking housing after the deadline? probably saying "tuff beans"...you should plan your purchase before an election!
Darren Bugeja
Aug 9th 2012, 08:37
Xi gimgha ilu Joseph Muscat habbar li wahda mil proposti ha tkun li ha jghin lil first time buyers biex jixtru l ewwel propjeta. Gimgha wara l pn johorgu b din l iskema. Fil fehma tieghi skema maghmulha b ghagla kbira ghal ftit nies ....300. u ma tafux dan il pajjiz ma tistax taghmel skemi ghal min jaqla ftit, ghax kulhadd jibda jiddikjara inqas biex jidhol fl iskema. l ahjar tkun ghal kulhadd l iskema generalment first time buyers kollha jkollhom bzonn l ghajnuna..u min le ghax jkun hadem ghalija
Adrian Borg
Aug 9th 2012, 07:52
it seems that sometimes it pays to be undeducated and uncommitted.....
Picture this - on one side a family (could be unmarried, but still a family) with a one working member - with minimum wage and an undeclared part time, another member registering for work, without the intent of ever working, having had 3 kids declared as unkown father....They will recieve all the help possible from the Goverment, and besides having more children allowance, and a further allowance for the children for 'not having a father', they would possibly be one the front line to benefit from properties with subsidies up to 25% of their commercial value, and now a further interest subsidy of 2.5%.......
On the other hand, a family, where both parents are graduate and work and have children. They've paid for the full value of their home, they receive no extra allowance for children, they pay full taxes and NI and they have to work for 40 years to pay the loan on their normal home/flat/maisonette they purchased to start a life together.
...See who will be better off in a couple of years.........believe me, i know of people who have leached all the subsides and help the Government provides, and after 10-15 years they can now afford a summer home in Gozo, an expensive car, yearly holidays and no loan worries. Much more than the average graduate with a good pay would be able to afford in 10-15 years.
Robert Agius
Aug 9th 2012, 08:21
Although you have a point, please tell me how ' a one working member - with minimum wage and an undeclared part time, another member registering for work, without the intent of ever working, having had 3 kids declared as unknown father' will be granted a loan in the 1st place.
Wenzu Vella
Aug 9th 2012, 08:31
Dear Adrian you seem to know all the short cuts for an easy life, so what is stopping you doing the same if it is so good? You know what they say if you cannot beat them join them. GOOD LUCK..
Edward Camilleri
Aug 9th 2012, 08:36
You cannot have said it better Arian!
ANTHONY PAVIA
Aug 9th 2012, 08:43
Yes you are right. Unfortunately, this is pure socialism Nationalist Party style. This is what has contributed to dilute taxpayers monies over these years and balloon our national debt. Free this, free that, free this again, free that again, subsidies, allowances, burgeoning public sector etc, etc, etc, etc. The PN has turned more socialist than socialists themselves. The socialists have upgraded their policies in line with modern thinking, and are enjoying a merited revival. However, the PN has turned to socialist's policies only for the end benefit of some. And that is the real problem the electorate is experiencing.
Adrian Borg
Aug 9th 2012, 08:56
@ Wenzu Vella - i'm sure that everyone knows the shortcuts, but there are some people who still prefer to be educated, honest and committed.....Ever heard of of people who steal for an easy life? people who pass 'bord' declaring they are un-fit for work, when they are? people who fake disability for an insurance payout which sets them for life? Being aware of such things, doesn't mean that i would be ready to follow such practices
Mr Tony Gatt
Aug 9th 2012, 08:58
@ Adrian Borg.
In he U.K. a 16 -year-old becoming pregnant (father unknown- we have virgin births here!) is in line for a council flat, gratis, free and for nothing, with housing benefits etc. etc. etc.
It's a career move for some.
A Vella
Aug 9th 2012, 09:25
That is Socialism for you
A Vella
Aug 9th 2012, 09:32
@Anthony, true what you said, apart from the last part which is just idealism and nothing more. But we are screwed because The LP is proposing much more of this, say subsidised W&E, living wage, and wasting more money running after youngsters who want to live this life, amongst others.
Marie Louise Spiteri
Aug 9th 2012, 07:51
Jiena favur hafna kull inizjattiva li kwalunkwe gvern lest li jaghmel ghaz-zghazagh kollha li jixtiequ jixtru dar biex jibnu familja pero jiddispjacini hafna nghid li il verita hija ferm differenti minn kif ipinguwha. Ahna fit 2008 gejna biex nixtru l ewwel dar u konnha applikajna ghal skema partikolari mal housing authority li l ewwel qalulna li ha nibbenifikaw minnha ghax konnha qed naqaw fil kategorija imbaghad wara tmien zhur nistennew qalulna li il proposta taghna ma gitx milquwha, wehilna hafna charges ghalxejn. Batejna hafna biex hallasna il loans bil pagi li ghanna u ghadna inbghatu sal gurnata tal lum u qatt ma taghna xejn il gvern. Qatt ma sibna ghajnuna. U bejn il loans u spejjez ohra lanqas ghandna cans naghmlu affarijiet ohra. Harget l iskema tal postijiet tal gvern u persuna li naf jien li ilu jahdem hajtu kollha, biddel 2 karozzi sportivi, isiefer tlett darbiet fis sena u johrog kuljum u ghandu somma imfaddla....ha post tal gvern gdid fjamant u nieqaf hawn u inhalli lil haddiehor jahseb fuqha din. Gustizzja socjali????
j brincat
Aug 9th 2012, 07:42
"The scheme was announced by Justice Minister Chris Said and will be open for a year of for the first 300 applications"
Why introduce such a scheme on the eve of the election?
Why only the first 300 applications?
(jb)
Jo Gatt
Aug 9th 2012, 09:24
JB, that was my question as well. Why only the first 300? Surely if it is an incentive for first time home buyers, it should be a standard policy for EVERY first time home buyer. People get married almost every day.
I would have thought that first time home buyers struggle more with the deposit and fees to buy a house, so why don't they arrange a way that the deposit and fees be included in the mortgage... THAT will make it easier for new, young home owners.
Jonathan Camilleri
Aug 9th 2012, 07:04
Doesn't the subsidy apply for people purchasing directly from owners?
mark borg
Aug 9th 2012, 07:01
The scheme was announced by Justice Minister Chris Said and will be open for a year of for the first 300 applications..........of die hard pn supporters
sussidju kienu imma meta kien gawda il poplu kollhu meta dom mintoff waqqaf bank apposta u kont tidejjen b one percent ! .......u mhux 300 mitt ruh (nazzjonalist)......
Lawrence Fenech
Aug 9th 2012, 03:35
He he he, mela in-nies qed tahsibhom imzazen, l-ewwel faqqartuhom bit taxxi u kontijiet u issa tridu tidhru sbieh ghax gejja l-elezzjoni, halluna. Mas sabieha "subsidy" xorta iridu idahhlu idejhom fil-but u forsi anke jisselfu bl'interessi.
John Scerri
Aug 9th 2012, 09:00
Bhal ma ghamel il MLP qabel l-elezjoni 1996...wieghed l-ilma jizfen imbaghad meta tela splodew il kontijiet tad dawl barra taxxi ohra.
Tiftakar ic-cittadin mobile , cittadin hemm u cittadin hawn.
Labour hu paroli biss ghandu ghax lanqas Marie Louise Coleiro Preca ma tat proposta wahda l-bierah . Basta inpacpcu u jippretendu l-voti taghna ? LE . Vot fuq Kaxxa maghluqa hu vot mohli .
N. Bill Camilleri
Aug 9th 2012, 01:35
This is a great idea. We had schemes like this in the US about 10 years ago and it worked out really well. If nothing else it will help win over a few votes.
Daniel Camilleri
Aug 8th 2012, 23:17
I would not be surprised if this scheme is more useful to the sellers that might increase prices as the buyers have more disposable money.....time will tell.
Niom Niom
Aug 8th 2012, 22:40
'They will benefit from an interest subsidy of up to 2.5% on borrowing from the banks of up to €80,000.'
Does this mean that the loan amount cannot exceed 80,000 euro???
If yes, with 80,000euro the most you can buy is a boathouse or a piece of land in an ODZ area.
SERIOUSLY???? 80,000euro maximum cap for a home loan to benefit from this scheme??
A Lepre
Aug 9th 2012, 10:56
yepp....there's always a catch.... There are usually other conditions, such as value of FINISHED property cannot exceed EUR 120 000. Also, the applicant's annual income is a factor which determines whether one would be eligible or not.
Rowena Scicluna
Aug 8th 2012, 22:16
It's always for first-time buyers. What about those people who want to change their house for one reason or another?
Jeffrey Mallia
Aug 8th 2012, 21:34
Is it Christmas season ?? Oh no.......election fever :)
X Borg
Aug 8th 2012, 22:03
Yes, only for the 'lucky' first 300 per year.
BTW when does a year start and how would we know that 300 have been taken (or been reserved).
Please choose the reason of your report below: