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Rental Market query

In Norrbotten

swedendreaming
post 15.Feb.2011, 07:30 AM
Post #1
Joined: 25.Jan.2011

Hello,
I have been looking at many of the adverts for real estate on this site and have a few questions about the rental market in Norbotten. Let us assume we are talking about areas within 20km of major towns or cities.

1) Is there a rental market for private rentals? I notice that there is a strong government housing presence (which is a wonderful thing), so I am curious if there is also a market for private rentals.

2) If one was to purchase an apartment in a northern town or city, is there a market to rent it out? and What would an average rental price be for a lower end apartment?

3) Is there a rental market for houses outside of the major towns, within 30 minutes drive of a town? And if so, what would an average rental be for a standard 3 bedroom house?

4) And finally... when you purchase an apartment you have many fees to pay each month, i.e. avgift
When you rent the apartment to someone, do they still take out utilities in their own name and are responsible for this?

Any feedback is most welcome.

regards
Rob
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Rick Methven
post 15.Feb.2011, 07:45 AM
Post #2
Location: Linköping
Joined: 30.Nov.2005

When you buy such an apartment (Bostadsrättslägenhet) you do not own the apartment but own a share in the housing cooperative that owns the building.

Bostadsrätt is designed for owner occupiers and you would have to get the permission from the housing association to sub let. IF you are given permission, it would most probably be for a limited time ( a couple of years) and they would also set the rent that you can charge.

These rules are in place to stop people profiteering from cheaper cooperative housing
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swedendreaming
post 15.Feb.2011, 07:49 AM
Post #3
Joined: 25.Jan.2011

Thank you Rick, and its an excellent rule!

How does one distinguish between a co-op owned apartment and a free title apartment, or is there no such thing.
Are all apartments "Bostadsrättslägenhet"?

regards
Rob
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Rick Methven
post 15.Feb.2011, 08:11 AM
Post #4
Location: Linköping
Joined: 30.Nov.2005

Any property that has shared services (heating common areas) is Bostadsrätt.

basically there are 3 types of property in Sweden

Hyresrätt - An apartment owned by a person/company for rental where the rent includes common services such as heating and maintenance provided by the building owner

Bostadsrätt - an apartment owned by a cooperative association (BRF) where the the apartment occupier has equity in the association. The BRF provides common services and external maintenance.

Villa - a freehold property
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swedendreaming
post 15.Feb.2011, 08:21 AM
Post #5
Joined: 25.Jan.2011

Thanks,
so if I was the building owner, it would be a Hyresrätt building, and I would set the rent to include the provision of heating and maintenance... I trust I am getting this right...

regards
Rob
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Puffin
post 15.Feb.2011, 08:23 AM
Post #6
Location: Dalarna
Joined: 5.Apr.2006

Free title apartments are a new thing in Sweden as they only became legal in the last 2-3 years and there are very few at the moment. I read an article recently that they are less popular with Swedes and more problematic to re-sell

Most private landlords in the Northern part of weden tend to buy and rent villas or buy a large villa and subdivide into apartments which is possible

You would need to check out what the local rental market is like as private landlords must charge rents in line with existing kommun housing company rents
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007
post 15.Feb.2011, 09:21 AM
Post #7
Location: Stockholm
Joined: 2.Apr.2006

QUOTE (swedendreaming @ 15.Feb.2011, 07:30 AM) *
1) Is there a rental market for private rentals?

if you own the building, yes. or renting out a freehold house (townhouses most often qualify too--just can't be part of a bostadsrätt association.)

QUOTE (Rick Methven @ 15.Feb.2011, 07:45 AM) *
the housing association would also set the rent that you can charge.

that's not accurate. you set the rate between you and your subletting tenant. the förening can only decide what to charge you as your avgift.

QUOTE (swedendreaming @ 15.Feb.2011, 08:21 AM) *
so if I was the building owner, it would be a Hyresrätt building, and I would set the rent to include the provision of heating and maintenance... I trust I am getting this right...

yes. you're right. however, there are upper ends of how much you could set (calculated based on a number of set criteria)
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gplusa
post 15.Feb.2011, 01:28 PM
Post #8
Location: Luleå
Joined: 4.Sep.2009

Tax on a residential property which is not your primary residence can be significant. To deter the property speculators who have driven up the price of housing and rental accomodation in other countries. Housing is relatively inexpensive in the north (in my opinion)partly because of this. The market for private rental houses, as opposed to apartments, is not huge. Again, due to low purchase prices and good lending conditions. Anyone wanting a house will buy one. Apartment rentals are generally run by large companies and the local councils. So there's not a huge market for smaller private renters.

Most body corporates in the region have specific clauses in their agreements banning the buying of an apartment for investment purposes. The reason is that they want the owner of the apartment to be the person living there. An owner/occupier is more likely to keep their apartment at a higher standard, helping to maintain the value of the other apartments. And there is a security issue where people want to know who it is that is living in the building. Which obviously can't be controlled by the body corporate with tenants. So it's not a common practice in the north.

The body corporate I was with declined to endorse the sale of an apartment within their building because the purchaser had bought it as a weekday residence only. They had a family home in another town, but must have found a job in my town and needed somewhere to live from Monday to Friday. The body corporate decided that the person would not have the same interest in their property as the residents who lived there full time. A big call, but not uncommon.

As for the regions themselves, Kalix and Haparanda have undergone a bit of a growth and popularity spurt in recent years. Especially Haparanda. Prior to IKEA coming into town, it was a nothing town. Now it's one of the more expensive towns to live in. The mining industry determines the housing prices to an extent. Gällivare and Kiruna are both godforsaken towns but both can command top dollar for their houses. Because of the spending power within the region. Kiruna must be the Volvo Crosscountry and brand new snowmobile capital of Europe. The new mine to be opened in the Pajala region is going to put a big strain on housing, which is likely to impact back into Haparanda and Kalix. There's money in steel and copper.

So, there is likely to be a demand for housing, but the reality is that most people will either buy a house, or rent through one of the established rental providers. The local councils, together with the big private rental developers (such as HSB) are already underway with planning for new rental apartment accomodation in the towns you are thinking of.
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swedendreaming
post 15.Feb.2011, 08:34 PM
Post #9
Joined: 25.Jan.2011

Hi gplusa,
thank you for your in depth reply. It gives a good insight.

Its refreshing to see so many rules and attitudes to deter speculation and the unnecessary increase in prices.

Unfortunately, the tax rules wont stop investors external to Sweden as the tax credits available in ones home country nullify the impact of taxes imposed in Sweden.

Interesting that the introduction of IKEA can have such an impact on a towns existence.

regards
Rob
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gplusa
post 15.Feb.2011, 11:52 PM
Post #10
Location: Luleå
Joined: 4.Sep.2009

Following up on one of your other questions, I live in a town of 28,000 in Norrbotten, located 20 minutes from a city of 90,000. A lower end apartment with, say, 2 bedrooms, would be rented out here at about 3 500 SEK a month. The top end of the market would go for around 6 000 SEK a month. Given that you can buy an apartment for between 100 000 and 400 000 SEK, people won't pay much more for a rental.
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cenin
post 25.Apr.2011, 01:06 AM
Post #11
Joined: 5.Mar.2011

query on accommodation in Umea: I'm planning to move to Umea from UK this autumn - working there for around 5 yrs. I'd like a place with 2 beds, in or near town. Can anyone advise if I'd be better off renting or buying? Could I buy something this size for under 1 mill SEK?
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jamesblish
post 27.Apr.2011, 08:53 PM
Post #12
Joined: 26.Apr.2011

I've lived in most cities in Norrland including Piteå and Luleå which are both in Norrbotten. With the exception of Umeå and Luleå, I find all of Norrland fairly easy when it comes to getting a rental apartment. The best way to get a rental, I think, is to place an ad in a local paper basically saying who you are and that you're looking for a place to rent. Also include a picture of yourself where you look nice and clean and reliable. This should do the trick.

I got my apts in Piteå, Sundsvall, Örnsköldsvik etc. this way. The reason I'm excluding Umeå and Luleå is because they have major university campuses and therefore, it is much harder to find a place there. The places I've rented have all been privately owned and managed btw.
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Furu
post 28.Apr.2011, 01:35 PM
Post #13
Joined: 16.Jan.2008

QUOTE (cenin @ 25.Apr.2011, 02:06 AM) *
query on accommodation in Umea: I'm planning to move to Umea from UK this autumn - working there for around 5 yrs. I'd like a place with 2 beds, in or near town. Can a ... (show full quote)

Renting - http://www.bostaden.umea.se/

Buying - (New Development) http://bostad.skanska.se/bostader-och-proj...oborg-Kolmilan/
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jamesblish
post 28.Apr.2011, 01:37 PM
Post #14
Joined: 26.Apr.2011

QUOTE (Furu @ 28.Apr.2011, 12:35 PM) *


I don't know what the waiting situation is like in Umeå atm, but I waited for a year to get my student's apt way back. Man, it's 10 years ago now. Shiet. Well, anyway, if you're going to Umeå I'd recommend trying to establish a few "contacts" to help you find a place. And get in line asap.
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Onourway
post 13.Sep.2011, 07:50 PM
Post #15
Joined: 21.May.2006

The Swedes need to put as many barriers in place as possible to stop British property speculators buying up chunks of their property for rental. These types have wrecked the British economy, killed the property market over here and made it impossible for youngsters to get on the property ladder.

They're a parasite that will suck you dry!
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