The first time buyers' market

The question that keeps being asked of estate agents is: "Are property prices too high for the local market, especially for first time buyers?"

The answer is that there are plenty of properties between Lm20,000 and Lm35,000 on the market for sale, but these are spread around the islands in all the towns and villages, and not concentrated in one area.

The problem is that 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 difficult. Their expectations are high and they often expect to buy the home of their dreams from day one. This is not a new problem. We have had this problem for 40 years, and probably even more.

For example, in 1967 there were very few properties of any description for sale on the market, 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 sights and expectations are not set too high. There will always be a chance to buy a better home at a later date 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 own 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 properties, finished, or in shell form, or resales from people who are having to sell for one reason or another or are upgrading to a better place because they are financially more able to do so.

This section of the market is very delicate, one that 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 market could stop dead. 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 first time buyers' property market in Malta and Gozo 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, kitchenette and bathroom. Not so in Malta. First time buyers expect at least two bedrooms, sitting room, dining room, kitchen/breakfast and one or two bathrooms. Some even expect three bedrooms as a start. Not to mention a garden, study, garage, etc. Fortunately, such properties are in fact commonly found on the market to satisfy the local demand.

Loans for property purchase are now much simpler to obtain in Malta. Banks are bending over backwards to lend money to first time buyers. In 1967 this was almost impossible. In 1977 and 1987 this was very difficult, so today's first time buyers really do have a much easier time than their predecessors.

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, except a problem of our own making. We expect too much, and we are prepared to wait, and wait, and wait, until we find it. Sometimes we wait too long and miss it, and sometimes we never find it at all.

The answer is very simple. By reducing our very high expectations to something more reasonable, we will be ready to settle down more quickly and happily, looking forward to the future. And with hard work and ambition, eventually have the home of our dreams.