Three pitfalls to avoid when buying directly.
Owner Direct sales adverts are littered all over the internet.
I have always been in favour of an open market, especially if you, the purchaser, have all the time in the world to sift through the multitude of online adverts, a good 90% of which are never deleted when the owners sell the property, and are therefore outdated.
Time and patience apart however, there are still a number of hurdles ahead. In hindsight these pitfalls look obvious. Unless you are well prepared with a checklist, your emotions and pressure to act fast, can and do get the upper hand.
Since there are many points to look out for, I am short listing these to the three most often overlooked , two of which concern "noise pollution", one of the greatest stress-related causes.
The following apply to apartments.
1) Floorplan. Make sure to check whether the underlying or overlying apartment has the same floorplan as the one you're interested in. If your living room overlies your neighbour's bedroom, you can be sure of complaints whenever you have people invited over for a get-together. Likewise, if your neighbour's living room overlies your main bedroom, you might as well forget those quiet relaxed mornings over the weekend, or even worse, those occasional early nights when you're dead tired. Ideally, floorplans should be similar, or at least the living areas should all be on the front if the sleeping quarters are at the back, or vice versa.
2) Lifts/Elevators. If the apartment of your choice forms part of a large block, and you are on the ground or top floor, make sure you know where the lift's engine room is. If it is on the same level as the apartment, at least make sure that it does not lie on the other side of one of your bedroom walls. In a large block the lift will be working frequently, and the engine constantly flipping on and off can drive you crazy. Likewise, watch out for apartments with a bedroom sharing a common wall with the lift shaft as this is another common source of irritating noise beyond your control. Most blocks have the stairwell wrapped around the lift-shaft, however this is not always the case.
3) Underlying Beams. Is your target apartment in an old block? Consider asking your architect to check out the beams in the underlying apartment. Wooden beams may need worm treatment, and if the apartment you're interested in forms part of a new floor raised on top of an older block, then the underlying iron beams might be rusty given they were underlying the previous roof. We are not necessarily talking of a ceiling cave-in here, but even a slight movement in the flooring could cause loosening of floor tiles and other associated problems.
If you feel you need to clarify any of the above, or want more information, feel free to email me. Anyone wanting to contribute with more points, feel free to add to mine using the "comments" button below.
Tuesday, December 07, 2004
Thursday, October 28, 2004
Small is beautiful - The 1 bedroom market
Bachelor apartments and studios are selling like hot cakes. Independent young people, small investors and seperated couples are all contributing to the bullish market.
(To answer a frequently asked question, bachelor apartments have a seperate bedroom, and sometimes a seperate kitchen and living. A studio apartment has a large room furnished as an open plan kitchen, living and bedroom and only the bathroom or shower is seperate.)
Most investors in the buy to let market are preferring the smaller apartments. They offer flexibility, are cheaper to furnish and equip, and rarely remain empty for more then a couple of weeks unless they're over priced.
Will the market hold out?
In the current unregulated market, the current trend shows no sign of relent. Hundreds of new 1 bedroom properties are being rented out, most fetching around Lm120 to Lm160 monthly in the Sliema area. The older apartments are still very much in demand too, these fetching the same Lm90 to Lm110 monthly also in upmarket areas.
When the market is regulated, people who are abusing/utilizing residential loans to purchase their property will have to withdraw from the letting market, or pay the higher borrowing rate to switch to a commercial loan. One should also keep in mind, as indeed everyone should already be doing, the tax on profits, and VAT due from foreign lessees. The short let licenses are also much higher, and the water and electricity rates in this case are commercial.
When this happens, the purchasing price for a 1 bedroom will not be sustainable, at least for the buy to let market. The rental prices will have to be increased dramatically, but will the lessees pay, or will they move back to sharing rent on larger properties, which although also at higher rates, will be more affordable?
(To answer a frequently asked question, bachelor apartments have a seperate bedroom, and sometimes a seperate kitchen and living. A studio apartment has a large room furnished as an open plan kitchen, living and bedroom and only the bathroom or shower is seperate.)
Most investors in the buy to let market are preferring the smaller apartments. They offer flexibility, are cheaper to furnish and equip, and rarely remain empty for more then a couple of weeks unless they're over priced.
Will the market hold out?
In the current unregulated market, the current trend shows no sign of relent. Hundreds of new 1 bedroom properties are being rented out, most fetching around Lm120 to Lm160 monthly in the Sliema area. The older apartments are still very much in demand too, these fetching the same Lm90 to Lm110 monthly also in upmarket areas.
When the market is regulated, people who are abusing/utilizing residential loans to purchase their property will have to withdraw from the letting market, or pay the higher borrowing rate to switch to a commercial loan. One should also keep in mind, as indeed everyone should already be doing, the tax on profits, and VAT due from foreign lessees. The short let licenses are also much higher, and the water and electricity rates in this case are commercial.
When this happens, the purchasing price for a 1 bedroom will not be sustainable, at least for the buy to let market. The rental prices will have to be increased dramatically, but will the lessees pay, or will they move back to sharing rent on larger properties, which although also at higher rates, will be more affordable?
Tuesday, August 10, 2004
The Heat is on!
August is with us, and the high season is in. A brisk trade for all the hoteliers, restaurant owners and beach clubs.
In real estate however this month is synonymous with slugishness. Sales usually drop as most buyers prefer to take to the beach, or retreat to the air conditioned rooms within their homes instead of trawling the streets searching for that elusive dream house at a bargain price.
August however is the month which will reveal the hidden qualities of our traditional maltese houses. I am always full of admiration for those long gone builders and architects who designed, oriented, and built these temperature self regulating houses.
Yesterday I was given the keys to such a property to carry out a detailed inspection and put it on the market. Closed and unlived in for a year now, since the owners inherited another property, this townhouse was still cool and refreshing on the inside, and as soon as I had opened the back door onto the yard, and a couple of windows upstairs, a breeze ran through the corridors and rooms along an evidently pre established course. Pre established of course by the architect, and delivered efficiently by the builders. Such houses are a pleasure to live in, the electricity bills in summer are a fraction of what they would run up to in a modern, fully air conditioned building, and of course living in such an enviroment is much healthier.
In winter, the same is true. Last year, in February, I remember showing a sea front townhouse in Xemxija, and the weather outside was just short of a storm. Cold and raining. On entering the townhouse my clients immediately remarked how warm and homely the place was, even though it was uninhabited. The high ceilings, thick walls and wooden shutters still performed their magic, and yet again the result will translate in lower electricity bills and a healthier home enviroment.
In real estate however this month is synonymous with slugishness. Sales usually drop as most buyers prefer to take to the beach, or retreat to the air conditioned rooms within their homes instead of trawling the streets searching for that elusive dream house at a bargain price.
August however is the month which will reveal the hidden qualities of our traditional maltese houses. I am always full of admiration for those long gone builders and architects who designed, oriented, and built these temperature self regulating houses.
Yesterday I was given the keys to such a property to carry out a detailed inspection and put it on the market. Closed and unlived in for a year now, since the owners inherited another property, this townhouse was still cool and refreshing on the inside, and as soon as I had opened the back door onto the yard, and a couple of windows upstairs, a breeze ran through the corridors and rooms along an evidently pre established course. Pre established of course by the architect, and delivered efficiently by the builders. Such houses are a pleasure to live in, the electricity bills in summer are a fraction of what they would run up to in a modern, fully air conditioned building, and of course living in such an enviroment is much healthier.
In winter, the same is true. Last year, in February, I remember showing a sea front townhouse in Xemxija, and the weather outside was just short of a storm. Cold and raining. On entering the townhouse my clients immediately remarked how warm and homely the place was, even though it was uninhabited. The high ceilings, thick walls and wooden shutters still performed their magic, and yet again the result will translate in lower electricity bills and a healthier home enviroment.
Saturday, June 12, 2004
Road collapse in St.Paul's Bay
A week ago, a nasty incident left two women buried under the rubble when a building collapsed in St. Paul's Bay. A site was being excavated next door. The reason for the collapse has yet to be investigated.
Yesterday afternoon, two wardens were diverting traffic from the direction of Xemxija going towards Veccja, and asking motorists to take the bypass. The road a bit further uphill past Veccja restaurant was collapsing..........yet again.
The problem started last year when an old building was torn down to make way for an apartment block. The obvious happened when all the buildings further uphill and across the road exerted too much pressure down the clay slopes and onto the road, which then, as now, was already excavated and exposed along the other side. A thick wall was built to counter this downward pressure, however one year on this wall is also giving in.
Yet a couple of years earlier, part of the bypass also collapsed, and indeed a section of it is today still reduced to one lane. A massive excavation further down the hill and opposite the sea, had also left the bypass unsupported along the seaward side. Again the clay slopes along the otherside pushed down under the whole road, and the seaward side collapsed.
Still contractors and architects shoulder on and apply for yet more building permits to be issued. The excavations are then left exposed for long periods, and the same story repeats itself. Court action and decisions depending on the outcome languish for years, and the damage remains.
On Monday 14th. the road will be closed yet again for repair.
Yesterday afternoon, two wardens were diverting traffic from the direction of Xemxija going towards Veccja, and asking motorists to take the bypass. The road a bit further uphill past Veccja restaurant was collapsing..........yet again.
The problem started last year when an old building was torn down to make way for an apartment block. The obvious happened when all the buildings further uphill and across the road exerted too much pressure down the clay slopes and onto the road, which then, as now, was already excavated and exposed along the other side. A thick wall was built to counter this downward pressure, however one year on this wall is also giving in.
Yet a couple of years earlier, part of the bypass also collapsed, and indeed a section of it is today still reduced to one lane. A massive excavation further down the hill and opposite the sea, had also left the bypass unsupported along the seaward side. Again the clay slopes along the otherside pushed down under the whole road, and the seaward side collapsed.
Still contractors and architects shoulder on and apply for yet more building permits to be issued. The excavations are then left exposed for long periods, and the same story repeats itself. Court action and decisions depending on the outcome languish for years, and the damage remains.
On Monday 14th. the road will be closed yet again for repair.
Wednesday, June 09, 2004
Thursday, June 03, 2004
Commercial Property
Several times in the course of a month, I am contacted by companies or individuals looking for commercial properties to rent or buy.
It is very obvious, and everyone usually agrees, that the nature of one's business is a very important factor and usually determines, and in many cases limits, one's final selection. A retail company will seek passing trade. A legal office, clinic or accountancy firm would usually go for easy parking and easy access, with the exception of cities like Valletta or Sliema. However in the past years, there has been a great increase in IT businesses, or similar companies who do not see the public face to face, but communicate via modern technology.
Here in Malta, perhaps more than other countries, it is very important for such companies to take into consideration a few very vital points, which are:
1. Distance from the nearest sub station, and telephone exchange. Positioning your office far away from these sources will increase your chances of falling prey to sudden power cuts, possible crossed lines, and faulty ADSL connections. Most of the roads are constantly being dug up, repaired or flooded. The more roads you throw between you and your source, the more cables you are throwing to the mercy of the public and all elements.
2. Proximity to other businesses.If you are located in Sliema and there is a power cut, you can be sure that hundreds of shops will be calling the authorities and putting pressure on them for a fast repair. However, if you are on the perimeter of a scarcely populated village, chances are you can call it a day. You're one voice complaining in the wilderness. Residents do complain, but you'd be surprised how compliant people are if their business is not on the line.
3. Try to restrict your choice to well established and populated roads. If you're looking at a good business location, but some houses on the road appear derelict, make sure you can survive the 3 months or so it might take to demolish and rebuild the potential site into offices or apartments. If you work a lot over the phone, you might have to resort to double-glazing and full air conditioning in summer to be able to survive the commotion.
4. Watch out for ground floor premises located on steep hills. Make sure the road is not prone to flooding. If you're on the ground floor this will mean that one of the office walls will usually be at foundation level of the building next door and up the hill. If this wall is not well sealed off, you are risking flooding or humidity, which is the worst enemy of your computer and any other electrical equipment.
Although these scenarios will not occur on a daily basis, they will seriously effect your business in the long term. It only takes one bad day, or month to ruin many hours of hard work in winning new customers and new accounts.
It is very obvious, and everyone usually agrees, that the nature of one's business is a very important factor and usually determines, and in many cases limits, one's final selection. A retail company will seek passing trade. A legal office, clinic or accountancy firm would usually go for easy parking and easy access, with the exception of cities like Valletta or Sliema. However in the past years, there has been a great increase in IT businesses, or similar companies who do not see the public face to face, but communicate via modern technology.
Here in Malta, perhaps more than other countries, it is very important for such companies to take into consideration a few very vital points, which are:
1. Distance from the nearest sub station, and telephone exchange. Positioning your office far away from these sources will increase your chances of falling prey to sudden power cuts, possible crossed lines, and faulty ADSL connections. Most of the roads are constantly being dug up, repaired or flooded. The more roads you throw between you and your source, the more cables you are throwing to the mercy of the public and all elements.
2. Proximity to other businesses.If you are located in Sliema and there is a power cut, you can be sure that hundreds of shops will be calling the authorities and putting pressure on them for a fast repair. However, if you are on the perimeter of a scarcely populated village, chances are you can call it a day. You're one voice complaining in the wilderness. Residents do complain, but you'd be surprised how compliant people are if their business is not on the line.
3. Try to restrict your choice to well established and populated roads. If you're looking at a good business location, but some houses on the road appear derelict, make sure you can survive the 3 months or so it might take to demolish and rebuild the potential site into offices or apartments. If you work a lot over the phone, you might have to resort to double-glazing and full air conditioning in summer to be able to survive the commotion.
4. Watch out for ground floor premises located on steep hills. Make sure the road is not prone to flooding. If you're on the ground floor this will mean that one of the office walls will usually be at foundation level of the building next door and up the hill. If this wall is not well sealed off, you are risking flooding or humidity, which is the worst enemy of your computer and any other electrical equipment.
Although these scenarios will not occur on a daily basis, they will seriously effect your business in the long term. It only takes one bad day, or month to ruin many hours of hard work in winning new customers and new accounts.
Townhouse Apartments
One of the disadvantages of living in a new property is that unless you enjoy open views from your window, there's little evidence as to where you are in the Mediterranean.
The interior stone walls and lack of central heating or double glazing would probably shed some light as to your latitude on the map. However the ceramic floors, painted walls,square rooms and resin staircases are all standard.
This is one of the reasons why more and more tourists visiting Malta are opting to live in older traditional properties for their vacation.
They want to be reminded they're abroad and on holiday even when they're indoors.
They want high ceilings, long narrow windows with lovely wooden shutters, beautiful patterned floor tiles and wrought iron ballustrades.
They want to look out of the back window and see a low skyline and a clear sky.
This is the typical southern Mediterranean architecture they can only dream of back home.
Now unless a tourist is visiting the island with all the family in tow, a townhouse would prove too large a property, so many are opting for the smaller townhouse apartments.
These are large townhouses split into three or four self catering units.
A good architect will allow each apartment to retain all original features whilst also respecting the original proportions and unity of the whole.
A lot of these townhouse apartments are currently found in Valletta, Sliema, St. Julian's and similair areas where very large houses are common, and where tourism is strong thus providing year long occupancy.
The trend is spreading fast though and even non touristic areas are now entering the market, especially with the increase of online bookings over the internet.
In Valletta a 1 bedroom townhouse apartment will usually fetch between Lm14 to Lm18 daily
depending on season and number of persons. In Sliema a 2 bedroom spacious TOH apartment usually fetches anything between Lm24 to Lm30 daily. These prices are all inclusive.
The interior stone walls and lack of central heating or double glazing would probably shed some light as to your latitude on the map. However the ceramic floors, painted walls,square rooms and resin staircases are all standard.
This is one of the reasons why more and more tourists visiting Malta are opting to live in older traditional properties for their vacation.
They want to be reminded they're abroad and on holiday even when they're indoors.
They want high ceilings, long narrow windows with lovely wooden shutters, beautiful patterned floor tiles and wrought iron ballustrades.
They want to look out of the back window and see a low skyline and a clear sky.
This is the typical southern Mediterranean architecture they can only dream of back home.
Now unless a tourist is visiting the island with all the family in tow, a townhouse would prove too large a property, so many are opting for the smaller townhouse apartments.
These are large townhouses split into three or four self catering units.
A good architect will allow each apartment to retain all original features whilst also respecting the original proportions and unity of the whole.
A lot of these townhouse apartments are currently found in Valletta, Sliema, St. Julian's and similair areas where very large houses are common, and where tourism is strong thus providing year long occupancy.
The trend is spreading fast though and even non touristic areas are now entering the market, especially with the increase of online bookings over the internet.
In Valletta a 1 bedroom townhouse apartment will usually fetch between Lm14 to Lm18 daily
depending on season and number of persons. In Sliema a 2 bedroom spacious TOH apartment usually fetches anything between Lm24 to Lm30 daily. These prices are all inclusive.
Tuesday, June 01, 2004
Tower Road Apartments
The rental market on Tower Road Sliema has been changing ever since the Portomaso project neared completion.
The future doesn't look any much brighter with the MIDI project targeting 2005 for completion of it's first residential units. Tower Road prices have had to be revised downwards, and more stubborn landlords have been left perched on the fence.
Foreigners renting on the island are having more and more choice at hand, and the first properties to be axed off their lists are those with shabby furnishings or with dilapidated common parts and creaking lifts.
Gone are the days when lessors gathered any unwanted bits and pieces of furniture at home and furnished their rental flat with them. Back then, choice was limited and anything rented fast. Summer short lets were fast and furious. Snap up the property now or sleep on the bench tonight sir!
Today the cost of furnishing an apartment has gone down considerably, and the standard of finishing has also shot up. Gypsum walls, fitted oak kitchens, dishwashers, tumble dryers and air conditioning have become the norm for anything over Lm250 a month in popular areas.
This week's value for money property on the sea front has to go to this Tower Road apartment. Very spacious, well positioned and with underlying car space accessible by lift. The sea views from the top floors are nothing less then stunning.
The future doesn't look any much brighter with the MIDI project targeting 2005 for completion of it's first residential units. Tower Road prices have had to be revised downwards, and more stubborn landlords have been left perched on the fence.
Foreigners renting on the island are having more and more choice at hand, and the first properties to be axed off their lists are those with shabby furnishings or with dilapidated common parts and creaking lifts.
Gone are the days when lessors gathered any unwanted bits and pieces of furniture at home and furnished their rental flat with them. Back then, choice was limited and anything rented fast. Summer short lets were fast and furious. Snap up the property now or sleep on the bench tonight sir!
Today the cost of furnishing an apartment has gone down considerably, and the standard of finishing has also shot up. Gypsum walls, fitted oak kitchens, dishwashers, tumble dryers and air conditioning have become the norm for anything over Lm250 a month in popular areas.
This week's value for money property on the sea front has to go to this Tower Road apartment. Very spacious, well positioned and with underlying car space accessible by lift. The sea views from the top floors are nothing less then stunning.
Saturday, May 29, 2004
Property Blogging Launch
I just inspected a very recently built and very sweet flatlet for rent in Swieqi.
Actually the term flatlet doesn't do the place any justice. It does in fact underly the owner's property, however it's entrance is totally private and independent, and what's more, the property is semi-detached!
The ever increasing property prices here in Malta has translated into smaller and smaller residential units, and with this, a gradual corruption of certain real estate terms.
I remember, for example, seven to eight years ago the word maisonette would have certainly defined a property with an independent entrance, and with only one other overlying or underlying neighbour. Nowadays, a groundfloor flat with an independent entrance is also referred to as a maisonette, although I think that is pushing the term a bit too far. In areas such as Swieqi, maisonettes in blocks of 3 are the standard nowadays.
Back to the property I just put on the market. I guess I opted for the word flatlet as an indication that the property underlies the owner's residence, and the entrance walk way is a few steps below street level, although the whole property is on high ground at the back. In all other considerations the 3 bedroom layout is very spacious, the furniture of very good standard, and a surrounding terrace with some views really makes this property an attractive residence.
Actually the term flatlet doesn't do the place any justice. It does in fact underly the owner's property, however it's entrance is totally private and independent, and what's more, the property is semi-detached!
The ever increasing property prices here in Malta has translated into smaller and smaller residential units, and with this, a gradual corruption of certain real estate terms.
I remember, for example, seven to eight years ago the word maisonette would have certainly defined a property with an independent entrance, and with only one other overlying or underlying neighbour. Nowadays, a groundfloor flat with an independent entrance is also referred to as a maisonette, although I think that is pushing the term a bit too far. In areas such as Swieqi, maisonettes in blocks of 3 are the standard nowadays.
Back to the property I just put on the market. I guess I opted for the word flatlet as an indication that the property underlies the owner's residence, and the entrance walk way is a few steps below street level, although the whole property is on high ground at the back. In all other considerations the 3 bedroom layout is very spacious, the furniture of very good standard, and a surrounding terrace with some views really makes this property an attractive residence.
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