by admin 
Getting on the property ladder in Malta isn’t just about buying a home—it’s a way to build long-term financial security and even create new (passive) income streams. While property prices have risen, opportunities still exist for those who plan wisely. Here’s how you can start on the Property Ladder gaining passive income.
1. Save Smart and Leverage First-Time Buyer Schemes
The first hurdle is the down payment. Banks in Malta typically require around 10% of the property price upfront. If saving feels overwhelming, start by cutting unnecessary costs and setting up a dedicated savings account.
The government offers incentives like the First-Time Buyers Scheme, which waives stamp duty on the first €200,000 of a property or buying a property in an Urban Conservation Area (UCA) and avoiding paying duty on the first €750,000 Taking advantage of such schemes can significantly lower your initial costs.
2. Choose the Right Property - Get On The Property Ladder And Start Earning Passive Income
Not every property is a good investment. Look for homes in well-connected areas with potential for appreciation. Locations near business hubs, universities, or planned developments tend to grow in value over time. If your goal is rental income, consider places popular with expats and students, such as Sliema, Gzira, or St. Julian’s. If your budget is lower, look at the seaside resorts to the north or south of the Island. Suburbs like San Gwann are also very rentable.
Make sure you choose the right property to eventually scale up the property ladder to earn that extra income!
Start searching for the right property here!
If your goal is rental income, consider places popular with expats and students, such as Sliema, Gzira, or St. Julian’s. If your budget is lower look at the seaside resorts to the north or south of the Island. Suburbs like San Gwann are also very rentable.
Buying a property to rent out is one of the best ways to turn real estate into a source of income. Short-term rentals in tourist hotspots can generate high returns, while long-term rentals provide stable monthly earnings. Keep in mind that holiday rentals require an MTA license, so check the regulations before investing.
4. Start Small and Upgrade Later
If buying a large home seems out of reach, consider a smaller apartment or a maisonette. Once you’ve built equity, you can sell or use the property as collateral for your next purchase. Many investors in Malta started with a modest one-bedroom unit and worked their way up. The smaller units are ideal for short holiday Airbnb lets and even sought after for long term rentals.
5. Think Long-Term
Real estate isn’t a get-rich-quick scheme, but it is one of the most reliable ways to build wealth. Even if the market fluctuates, property in Malta has historically appreciated over time. Be patient, make informed choices, and focus on long-term gains rather than short-term trends.
6. Explore Bank Financing Options
Most buyers in Malta rely on home loans to fund their purchases. Different banks offer various terms, so shop around for the best mortgage deal. Some banks provide better rates for energy-efficient homes, while others offer flexible repayment plans. A financial advisor or mortgage broker can help you find the best option.
7. Renovate and Flip
If you’re handy or willing to oversee renovations, buying an older property and upgrading it can be a profitable move. Many townhouses and older apartments in Malta can be transformed into highly desirable homes with the right improvements. Just be sure to budget carefully, as costs can quickly add up.
8. Buy On-Plan for Early Gains
Another way to enter the property market with relatively low upfront costs is to buy on-plan. With just a 10% deposit, you can secure a property before construction begins, often at a lower price than completed units. As the project nears completion, property values typically rise, allowing you to sell (or “flip”) at a profit. However, it’s crucial to buy from a reputable developer with a strong track record of delivering projects on time. Delays and financial setbacks can impact profitability, so do thorough research before committing.
9. Join Forces
If buying alone isn’t an option, consider teaming up with a family member or friend. Co-owning a property can make financing easier and allow you to enter the market sooner. Just make sure all agreements are clearly outlined to avoid complications later.
This can be a better way to earn passive income on the property ladder.
10. Look for Added Value
When buying property, consider ways to increase its value beyond market appreciation. Can you build on the airspace to add an extra floor? Can the property be split into two units for separate rental or resale? Even simple modifications, such as converting a large bedroom into two smaller ones, can make a property more appealing to tenants or buyers and add value/profit to a property
10. Buy for the long term
Another option is purchasing a ‘life estate’ (usufruct property) at a significantly reduced price, allowing you to secure an asset while waiting for full ownership rights in the future. This strategy can maximize your return on investment and make your purchase even more worthwhile.
Final Thoughts
Getting on the property ladder takes effort, but with careful planning, it’s achievable. Whether you’re looking for a home or an investment, making informed decisions today can set you up for a solid financial future. Start small, stay focused, and take advantage of every opportunity available to you in Malta’s property market.
