As the organisers put the final touches to the HSBC Advance Property Expo at the MFCC in Ta’ Qali, taking place next week between 17 and 20 March, property seekers are drawing up their wish list to ensure they make the best out of their shopping experience at this annual property marketplace.
“This is the third year that HSBC is supporting the property expo as we believe it provides the right opportunity for buyers to do their homework diligently and develop an informed opinion on what is available on the market, comparing properties, prices and also gauging the trends that rule the game,” said Andrew Ripley (picture), Head of Personal Financial Services at HSBC. “As a bank, we are present with expert advice for customers to understand their possibilities and guide them on how they can make a suitable purchase.”
The HSBC Advance Property Expo offers the added advantage of bringing the property market under one roof, making it easy for buyers to shop around and find different properties at different prices, discover new products on the market and find the right home at the right price.
David Grech, responsible for Events − Business Development at Duplex Real Estate, organisers of the expo, said the market is currently mainly characterised by two main categories: first-time buyers looking for apartments and maisonettes with an average price of €110,000; and a higher market sector with a budget which may vary but is mainly concentrated in the €600,000 to €800,000 bracket. “In the upper bracket, there is a good number of foreign investors, many from South Africa lately, or Maltese who would like to upgrade their home,” said Mr Grech.
Mr Ripley said first-time buyers comprise the largest customer segment for home loans. “This is even more so today, as besides couples, there is a growing number of adults, in their 20s and early 30s, buying property in their sole name. The rest of the market is made up of home movers who are predominantly older customers buying a second residence for leisure or investment purposes, and buyers from overseas.
“First-time buyers tend to ask for average loan amounts in the €80,000 to €120,000 bracket, which is in line with the price of property aimed at this segment, mainly apartments. Home movers and buyers from overseas tend to go for higher priced properties and as a result would normally require higher loan amounts.
“According to the latest published Central Bank statistics, property prices have increased marginally following a period of declines. Despite the declines, over the past decade, prices have increased considerably. The statistics cannot be seen in isolation though as there is a great deal of difference between various properties. One cannot just look at average prices as a reasonably priced, good quality property in a sought-after area is still considered a sound investment,” said Mr Ripley.
To help customers reach their goals, HSBC offers a wide range of products to suit different needs when buying property. Apart from the classic, long-term and variable interest rate home loans, HSBC offers fixed interest rate loans which allow the customer to lock in the rate for a number of years which protects against the impact of increasing interest rates.
Another popular option is the HomeStart repayment option, where the customer pays interest only in the first three or five years. In certain circumstances, HSBC offers niche products such as Interest Only Home Loans, Bridging Loans and Buy to Let Loans.
“Every loan proposal is considered on its own merits,” said Mr Ripley. “We lend as a proportion of the property value. It is a requirement that every loan is adequately secured by a charge on the property, and insurance arrangements are made. However, our overriding interest remains making sure that all customers can afford their loan repayments. Our specially trained officials in our branch network offer assistance to customers to ensure that the right product is offered to customers in accordance with their personal circumstances.”