I refer to the article ‘More affordable moving abroad than buying property here’, (The Sunday Times of Malta, September 23).
In the article, a couple in their early 30s with a joint annual income of €55,000 complain that a premises of €180,000 is not affordable. But the mechanics of housing affordability dictates that the annual joint income for this house price bracket falls within joint annual earnings of €27,000, well below the €55,000 earned annually quoted above.
This couple could easily afford property in the €350,000 price bracket. The amount that the couple intends investing in their future house is their decision, but the earlier they step on the housing ladder the better their investment will be. Home ownership is the best investment most owners undertake.
Do not leave it too late and arrive at pensionable age without owning a home. Possibly in Malta, the expectations of the younger generation is not being grasped and a rethinking on housing affordability should be undertaken – or is it that insufficient education on owning one’s house is being undertaken?
The global financial meltdown of 2008 onwards was more far reaching than the effects of the Great Depression in the 1930s, however the high home ownership prevailing in 2007, as compared to the 1930s, cushioned the effects of the latest financial debacle.