BUDGET 2008 | Tuesday, 16 October 2007

Helping hand for first time buyers

Home ownership remains the preferred option among Maltese and government chose not to upset any applecarts, ignoring any notion of rent reform and opting to subsidise interest rates for first time buyers.
Government will be subsidising up to a maximum of one per cent above the Central Bank’s base rate if this is higher than 3.75%. The subsidy will be given over a 10 year period on the purchase of the first residence, which is valued at not more than Lm50,000.
It is calculated that this measure will cost government half a million liri in 2008 alone.
Furthermore, the budget is proposing that the current stamp duty rate of 3.5% on the first Lm30,000 of a property purchased as a personal residence be extended to the first Lm50,000.
Another change being proposed is that parents who transfer land or property to their kids to be used as their residence will have the stamp duty reduced to 3.5% from 5%.