For a long time, people in Malta have thought that getting property was the best way to get ahead financially. This belief is so ingrained in our society that some people see it as a rite of passage. changed economic conditions and changed goals among young people are, however, making this norm difficult to follow. As a money coach, I think it's important to look into how the factors of owning a home are changing, especially when home prices are going up while salaries are staying the same and the idea of living a nomadic life is appealing.

Historically, buying a home in Malta has been seen as a safe and secure long-term investment. Because this asset is real and has the ability to go up in value, it has become a highly sought-after goal. Buying a home isn't just a smart financial move; it's also a cultural sign of security and success.

The Trouble with Buying

However, this dream is becoming heavier. It's hard to imagine committing to a 30- to 40-year mortgage, especially since home prices are going up all the time. It's getting harder and harder for young workers to find a balance between their desire to own a home and their ability to afford one.

Renting could in fact give you more freedom than owning, which is very important for younger workers who are more mobile. Being able to move around without having to worry about a home is a good fit for the international, borderless world we are entering.

Quick Look at the Pros and Cons:

•      Pros of buying: stability, growing equity, freedom to make changes, long-term investment, and fixed mortgage payments.

•      The cons of buying are a big initial cost, debt and danger, a lack of flexibility, market volatility, and the need to do regular maintenance.

•      Pros of renting: it's flexible, costs less up front, doesn't require upkeep, makes budgeting easier, and protects you from market risks.

•      The cons of renting are that there is no property, rents can go up, you don't have much control, and your tenure isn't stable.

It's not as easy to decide whether to buy or rent in Malta these days. It requires a deep understanding of your current cash situation, preferred way of life, and long-term goals. For young people who want to live a life without being limited by where they live, renting might be a better option. Buying still makes the most sense for people who want security and a long-term investment. As we deal with these shifting tides, it's important to make smart, personalised choices that fit our changing financial and living situations..

 Luca Caruana is a Certified Money Coach and Founder of the Money Coaching Hub