The dream of homeownership is a common aspiration among young people worldwide, and Malta is no exception. For many, however, the journey onto the property ladder can be daunting, especially considering recent economic trends and market dynamics.

Recent research highlights the challenges faced by young people in Malta when buying their first home. Despite a low housing cost-to-income ratio, which stands at 10%—well below the EU’s 30-40% affordability threshold—the reality for young, aspiring homeowners is far from comfortable. The affordability gap is particularly pronounced for young adults on lower wages and single-adult households, who find that average property prices are out of reach.

The Maltese government, recognising these hurdles, has implemented strategies to aid first-time buyers. The First-Time Buyers Scheme (FTB), for instance, offers a grant of €10,000 spread over ten years, providing some relief for those entering the market.

For those considering alternative paths, relocating to Gozo presents a more affordable option, with property prices generally lower than in mainland Malta. This option, while not suitable for everyone, offers a glimpse into the flexibility required when navigating the property market.

Moreover, the role of real estate agents in Malta cannot be overlooked. They serve as crucial guides in simplifying the buying process, helping young buyers understand the market and find properties within their budget. It’s essential for prospective buyers to conduct thorough research, often viewing numerous properties before deciding.

Building good financial habits from a young age is also vital. Parents and guardians have a responsibility to help their children understand the importance of saving from a young age. While it’s easy, and understandable, for young adults in their twenties to spend all their income on enjoying life, the consequence of this is that it becomes much harder to buy a property and begin building long term financial security.

Therefore, learning to save at least part of your earnings is an important life skill and shopping around for the best interest rates to build up your deposit before applying for a home loan can make a real difference to how much you will be able to afford. Accounts such as MeDirect’s MeMax account which offer a higher interest rate of 2 per cent per annum, paid monthly can really help you benefit from the power of compounding, It also makes sense to speak to different banks before you start your search to better understand all the costs involved and how much money you are going to be able to borrow. Having a clear budget will help guide your search and avoid unrealistic expectations.

The path to homeownership in Malta for young people is complex and requires a multifaceted approach. Government interventions, market understanding, and personal flexibility are all key components. As young Maltese navigate these waters, it’s clear that support systems, both governmental and familial, play a vital role in bridging the gap between aspiration and reality.

For those young individuals looking to climb the property ladder in Malta, it’s a journey that requires patience, perseverance, and strategic planning. With the right approach and support, the dream of owning a home in the heart of the Mediterranean can become a tangible reality.

MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority to undertake the business of banking in terms of the Banking Act (Cap. 371). The Bank is a participant in the Depositor Compensation Scheme established under the laws of Malta.

The MeMax Savings account is available in Euro and rate quoted is gross of tax, paid on a monthly basis and is compounded. Account holders can deposit up to €2,000 per month up to a maximum account balance of €50,000.

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.