Leadership matters | Joseph P. Theuma

The liberalisation of building heights in 2005, coupled with the extension in building zones was a hallmark of the planning policies of the first Gonzi administration between 2004 and 2008. Do you agree with MEPA's penthouse planning policy revision where design is concerned?
"Changing this policy is in all probability going to have a negative effect on the overall aesthetics of our streets. Taking a highly possible scenario, whereby a built block of apartments, complete with an overlying penthouse, is located adjacent to a terraced house, still in its 'original' state, it becomes obvious that if this proposal of removing the possibility of building a penthouse goes through, these two buildings will create an unpleasant picture once this terraced house is developed.
"On the other hand, what is at the root of this decision is also worth considering. At least from what is transpiring, the reason for this proposal is to allow the possibility of installing more and more solar energy panels on our rooftops. Something which in our day and age is as valid and necessary as the law, passed a very long time ago, dictating that every building is to have its own water reservoir.
"What might perhaps be worth looking into is if indeed there might be some possible alternative solution to this problem. Something that will still allow the development of penthouses, but also has built-in guarantees that adequate spaces for installation of these solar energy panels are made available.
"From our experience, penthouses remain very much sought after, a real favourite amongst buyers.
"Why can't we therefore oblige the developers to do away with the practice of selling on the airspace overlying the said penthouse while at the same time restricting them to allocate this roof space, equally shared amongst the owners of all the apartments, precisely for the installation of these panels? I say this provided that we (I, for one) am reading the agenda behind this proposal correctly."

Malta Developers Association president Michael Falzon said that government-appointed architects are being "guided" by the Inland Revenue Department on the 'discerned' market value of properties, resulting in higher tax claims on purchased property. The MDA is leading a public offensive on the 12% final withholding tax on property sales, claiming the rate does not reflect the state of property values in Malta's current state of dampened prices. Do you agree with the MDA on the above-mentioned issues? If not, how would you go about this situation?
"From my understanding of the question, the word 'discerned' means 'believed to be'. Provided my interpretation is correct I would say that I am not quite sure that that is the case.
"I would actually venture into bolder territory at the risk of being ill received to say that I surely hope not! If that were indeed the case, it would mean that we are being totally unprofessional in that regard.
"Allow me to add - and I say this with all due respect - that going by what architects evaluate,  is also not always a good reflection of the current market situation.
"Unfortunately the knowledge and experience (not to mention recorded statistics available to us estate agents), are often jeered at by all and sundry and more often than not we keep finding ourselves in a conflicting situation when it comes to determining the market value of a property.
"The real regret is that to date our country, unlike so many other countries, does not have properly set guidelines on property prices and made available to the public.
"Some months ago, a small representation from one of our locally-based auditing firms, forming part of one of the four world's leading firms in the industry, paid a visit to my office in St Julian's.
"The purpose of the meeting was to propose the idea of a system whereby one compiles the data from all the island's leading estate agencies, which data would be focused entirely on property sales. A totally brilliant idea I thought, but which to date, regrettably, I have not heard of since."
"In my humble opinion, having this service available would work well towards setting important guidelines, if not benchmarks, which above all are transparent and leave no room for speculation that these blessed evaluations are controlled by individuals with private agendas."

How does RE/MAX differ from other real estate companies in Malta?
"RE/MAX can boast of better agents, best service, and has the largest database. RE/MAX recognises its sales associates (real estate agents) as individuals running their own business. The paradigm shift from feeling that you are working for someone to actually being your own boss is huge.
"The individual's automatic want and need to provide a better and more efficient service is realised immediately and therefore our customers receive a better end product as a result.  
"We hone their skills and develop our associates through our real estate academy and we invest in state-of-the-art technology. The concept of "being in business for yourself but not by yourself" has also left a major impact on our franchising concept. Imagine bringing together some of the most successful people in the real estate industry and discussing the way forward regularly.
"This is what we do, day in day out, with our franchise owners and office managers."

Has property development reached a stagnation point, with many properties left unsold?
"In actual fact no. This misconception has always been just that... a mistaken belief. Developers ready to invest are still out there on the prowl, looking for that right property which they can turn into a project, however these properties are on the decrease.
"As we have always said, properties lay unsold for many reasons, least of which is demand. Our business last year saw a huge rise in the number of sales and this year we're experiencing the same pattern. Vendors, private owners and developers alike are understanding what makes a property sell: listening to the advice of the industry's professionals."

Do you predict the rental market is set to grow?
"The rental market is steadily growing and we are on target to reach a 30% increase over last year, which would be quite an achievement considering that last year was also a record year for us."

Have you seen a drop in foreign clients investing in property on our islands?
"The desire to purchase property here by foreigners has not changed but unfortunately as we all know the regulations of the new HNWI has restricted a few from actually taking the step.
"The new scheme has had a marked effect on those interested in becoming a resident of Malta which is natural but we all must understand that foreigners have always bought property in Malta for many other reasons other than the scheme.
"Our climate, infrastructure and quality of life remain attractive to foreigners who want to consider Malta amongst those candidate destinations where to purchase a second home or simply retire in."

Have you seen an increase in sales this year?
"Our year started very much in line with where we left off last year. As reported in the media, our figures showed that sales volumes were up 46% year-on-year at the end of the first quarter. Very encouraging results indeed, I would say."

How is RE/MAX enhancing its marketing tools while also educating its sales associates to provide an excellent service to purchasers and sellers alike?
"Technology and education remains one of our key strengths in the industry and will continue to evolve as these items are a priority for us. This year we have already contracted an exclusive real estate trainer, Paul Vincenti, who has already visited the RE/MAX headquarters twice for further training in the real estate industry.
"It so happens that Vincenti's skills have already been recognised and at present he is working on tailoring a training course for RE/MAX, together with top international trainers from around the world.  
"Our marketing tools are always evolving as we regularly update our systems."

What are the common mistakes that are made on selling property?
"Some tend to base their property's market value on unqualified third party thinking. One example could be that you based your property value on that of a neighbour who sold his property at that price.  "One cannot assume that their property is exactly the same as that of their neighbour, many factors will change the value of a property, including quality of material, bathrooms, type of kitchen and actual square metreage."
"The idea of objectively comparing like with like hardly ever enters the sellers equation when we are called in for a consultation to help establish the right property market price. It is our duty to educate and show real examples to assist sellers with facts and provide them our knowledge."

Did this year's Property Expo, an expo RE/MAX played a big part of, reach its expectations?
"According to statistics provided by Duplex Real Estate Marketing, the numbers were similar as last year's. I think our strategy of having eight manned stands together with our training made our expo experience a better one."