(edit title) Investment in Property in Sweden I need advice in starting business in real state Options

[Elmahmoudy]

Hi, I would like to buy a property in Sweden, small apartment. My objective is to rent it to others and invest/earn money.
My questions is:
Q1: Is this a good project or not?
Q2: What is the minimum estimated budget to start with?
Q3: What is the over-head monthly running cost/expenses for such project?
Q4: What is the proposed municipalities/area to start searching in?
Q5: How to search: websites / broker directory...etc
Thanks a lot for your advise and respond

[johnjohn]

Answer #1 No thus other questions null and void.

[DamnImmigrant]

Your questions are so basic that I have to go with johnjohn on this one. It does not sound like you are ready.

I own 2 houses and am currently living in an apartment that I am trying to pay off as fast as I can. I find property in Sweden to be a good investment. Other people might say that it is currently in decline, but it will go back up, just like the stock market has its ups and downs. I am into these investments for the long haul. My apartment has nearly doubled in value in the last 4 years.

Buying an apartment has the hidden danger of the apartment's communal contract stating that the purchaser agrees to NOT rent the apartment out. This is very common here. It prevents people from buying places to "rent it to others and invest/earn money."

That said, there are places that do not have such by-laws.

[skogsbo]

it will provide a return, but marginal, even if you bought the property outright, you'll still have to the pay the additional fees between tenants. Plus, you would have to consider it a pension fund, as said above it's long term. Unless you can buy several good quality, good location city apartments, in cash, then you won't be getting a decent living from it.

We have a house we let, but with long term tenants and we own the ground too, so no associations or ground rent fees to worry about. Once paid off, the rent or income, is all ours

Personally, if I had a pot of cash I would buy a good, but small central apartment in a European ski resort, but one that has excellent summer tourism too, which reduces your standing empty times massively. I missed a few chances a decade ago, that I should have taken. With the fluctuating climate, I did wonder if Scandanavian ski resorts might be better options, for the guaranteed snow, but the summer tourism just doesn't compare to the Alps and Norwegian prices within a 2hrs drive of Oslo are just eye watering.

ps. I thought you wanted an IT business?

[byke]

ps. I thought you wanted an IT business?

Investing in tenants could be the new IT

[Essingen]

Buying an apartment has the hidden danger of the apartment's communal contract stating that the purchaser agrees to NOT rent the apartment out. This is very common here. It prevents people from buying places to "rent it to others and invest/earn money."

That said, there are places that do not have such by-laws.

It has nothing to do with by-laws. Renting out co-operative housing association apartments...both in terms of the circumstances where this is permitted and the rent that can be charged...is a matter of national legislation.

[John.Smith]

It is all about the Location too, i.e. which city.

Up North where I live, property typically increases only on an inflationary level (on average). Capital gains are minimal, but as others suggest it is a long-game where your tenant effectively pays the mortgage and if the location is right appreciate in value over and above inflation and after 20-30 years the property is yours to sell/hire out etc... for extra income.

You would find that investing in shares over the same period would yield higher returns but you may be lacking the gearing capital of a mortgage.

Property would however be a safe and low risk investment here in Sweden.

I lost my shirt in 2 property investments (Ireland and Bulgaria) a number of years ago. I am left with a house in Ireland with a value that now matches the mortgage debt after it fell 45% in value. I lost my cash capital

The Bulgarian deal fell through after I coughed up £26k in a deposit and phase 1 construction delivery. The builder and developer crashed and ran with several millions of investors money. I think the only good investment I have made has been in forestry. I will never again invest in property where there is risk of a bubble or dodgy developers.

In saying all that I did make a nice sum from 2 previous property investment in London and Dublin back in 2001 and 2004. Shame I lost most of it

[skogsbo]

. I think the only good investment I have made has been in forestry.

well as our bank manager here said when we bought our farm/forest, he'd never seen a bad forestry investment. It is of course long term.

Not sure how well it will pay off in the short term and remotely though, as I do almost all the work myself to increase my margin. The rules regarding paying off loans post tax, not pre tax, borrowed to buy the forest might restrict some investors too.

[Mib]

If you do it right and treat it as a business and long term, then buying plots of land in the right areas and building new property that offers something different from the norm and is of good quality will reap returns. The main reason why the Swedish market didn't crash like the UK, Ireland etc is that it didn't have a buy to let culture due to the tenancy laws for apartments where the mahority of people tend to live.

There is a risk in everything you do....risk can reap you great rewards or you can be burned. What separates the men from the boys are the ones who get knocked down, dust themselves off and try again...but have learnt something for the future.

Unfortunately...shares for me reaped great rewards at the start and then burnt me on the way down...but luckily I evened out and learnt a lesson or two. Property in the UK is still increasing in price again...in the right areas where employment is good with good transport links ie. I sold my place in Hertfordshire and it tokk 5 years before a house their sold more than I sold mine for and now they're selling even more. The demand is still there, albeit it is more difficult to get access to cash/mortage. The only thing you have to consider is when the economies eventually turn around...inflation is likely to have increased and thne mortgage rates will go up, which will affect a lot of people as there are still many with massive mortgages. As always...DO YOUR RESEARCH and think it through. Learn from others, read etc. DOn't lazily fall into it and expect results!

[skogsbo]

100-125% mortgages also added to the crash, but banks etc and folk's friends told them, don't worry it won't go down in price.

Yeah, interests rates have never been so low, for so long, many will no doubt be lulled into a false sense of security. When interest rates climb back up 3 or 4%, their mortgages are going to cost them between 25 and 50% more. A major ouch. We're trying to make hay while the sun shines by over paying ours at the moment.

[Elmahmoudy]

Hi, Thank you all for reply
My point is to buy in cash without any loans
Where I live, bank's interest is max. 9% for credit, what will be property average annual revenue percentage?

[skogsbo]

, what will be property average annual revenue percentage?

How long is a piece of string?
Ps. I'm paying between 2.5 and 4.5%, 9% is a crazy rate at the moment, secured?

[Elmahmoudy]

well as our bank manager here said when we bought our farm/forest, he'd never seen a bad forestry investment. It is of course long term. Not sure how well it will pay off ... (show full quote)

well as our bank manager here said when we bought our farm/forest, he'd never seen a bad forestry investment. It is of course long term.

Not sure how well it will pay off in the short term and remotely though, as I do almost all the work myself to increase my margin. The rules regarding paying off loans post tax, not pre tax, borrowed to buy the forest might restrict some investors too. ... (hide full quote)

Hi, can you tell me more about this kind of investment?

[Elmahmoudy]

How long is a piece of string?. Ps. I'm paying between 2.5 and 4.5%, 9% is a crazy rate at the moment, secured?

Just: average, mean every thing have mean and standard deviation for every standard distribution

[PDX]

It can certainly be an investment with very good returns if you buy the right property in an attractive location. As an example, this apartments makes excellent profit for the owner, as it rents for up to 10000 SEK per day during the season:

http://www.luxuryapartments.se/sv/

~~~~PDX~~~