When you’re starting the journey to find a new home, there are several important factors to keep in mind if you want to make sure the process is as smooth and successful as possible. In this article, Larissa Ciantar, MeDirect Malta’s Senior Manager – Mortgage Lending, takes a look at four of the key considerations you need to think about before you start your search.

Budget and Affordability

First and foremost, when you start thinking about buying a home, you need to establish a realistic budget. This means considering not only the purchase price but also additional costs such as notarial and architect fees, taxes, insurance/s, refurbishing costs, and any homeowners association fees. There are lots of tools available, like affordability calculators, to determine a comfortable price range. However, you should consider getting proper advice from a bank, ideally also speak to more than one bank to be able to compare offers and be aware of the amount you will be able to borrow towards your home purchase.  It will also be helpful to speak to your notary to better understand both the costs involved and any active current schemes that might be suitable for you

When thinking about your budget, don’t only think about the costs associated with your home. If you are just starting a family remember that your costs will increase as your family grows. As you get older, healthcare costs are also likely to grow and remember that even if none of these cost increases materialise, inflation may well still eat into your purchasing power and affect your ability to keep up with repayments.

Buying a home is a decades long commitment and while we can never predict what the future holds, we can at least think through some obvious potential scenarios and plan accordingly. 

Location

Once you have a clear budget, it is much easier to identify those locations where you can afford to buy. The location of your new home will have a real impact on your quality of life so try and find areas within your budget that match your lifestyle needs, whether that’s close to work or a school, or near shopping or particular leisure activities.

Also, think about how future developments in an area you are interested in might change its characteristics and the impact, for better or worse, that this might have both on your quality of life and on the future value of your home. It’s vital that you take a good look around to understand the neighbourhood and how it might be evolving before taking any decisions.

Home Features

What are the things you can’t do without? How many bedrooms and bathrooms do you need? What about an outdoor space? Think about your new home’s layout and whether it fits your preferences, lifestyle and budget. Remember that while cosmetic changes are possible, structural changes are more challenging, expensive and time consuming. Remember that it’s practically impossible to find the perfect property at the price you want, so be pragmatic about what’s available and what changes you would like to make, especially in the short term.

Long term goals

A home is a place to create memories with the people you love but it’s also the biggest investment most people make. It may well be the asset that enables you to afford an active and independent retirement. So, think about your long-term aspirations and try to understand what you will need as life changes and whether the areas you are thinking about are most likely to have the best potential for appreciation.

By carefully considering these aspects, you’ll be better equipped to find a home that not only meets your immediate needs but also serves as a valuable investment for your future.

Anyone who is thinking about buying a property can find more information and contact MeDirect’s home loans team via our website at https://www.medirect.com.mt/borrow/.

MeDirect Bank (Malta) plc, company registration number C34125, is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.