Real estate in Norway & # 8212; safety and a high standard of living.
Norway is a fairly prosperous country with a good standard of living. However, the financial soundness of the state inevitably affects the value of real estate – here any home from a small apartment to a large cottage is sold at very inflated prices, even compared to other European countries.
Real estate in Norway for life, recreation, investment: who buys and for what purposes?
Almost all houses in Norway are of excellent quality, because in its territory there are very strict technological standards and state building codes. Also, their imprint imposes severe climatic conditions.
Anyone can buy real estate in Norway and use it for doing business – for this there are no restrictions, even for foreigners. The question of the appropriateness of the acquisition of real estate must be resolved separately in each specific case.
By and large, there are three main reasons why people want to buy a home in Norway:
Investment – real estate in the North Kingdom every year only becomes more expensive, so buying an apartment or house is considered a good way of investing. Making a profit – in Norway, long-term rental of housing is very popular. Since in some parts of the country its cost is very high, the purchase of residential properties for the purpose of their leasing becomes a good option for year-round earnings. Emigration – a multivisa is issued to foreign owners of Norwegian real estate, giving the right to unlimited number of entries / departures to the country within the established period. In addition, people who live in the country for more than seven years can apply for citizenship, so buying a house or apartment is the first and simplest step towards emigration to Norway.
Features of the real estate market in different regions of Norway- which objects are in demand?
The choice of location will depend directly on the purpose of the purchase. For personal living and conducting active business activities, it is necessary to focus on the major cities and the capital of Norway – Oslo. In addition to the capital, foreigners tend to gravitate towards such places as Bergen, Hedmark, Stavanger and Trondheim.
For example, ski resorts: Lallehammer, Hemsedal, Kongsberg, Hafiel, Geilo, Trysil, Nurefjell are especially popular. The most comfortable zone for living is the coast in the south and west of the country.
Most often, real estate is bought in big cities. It can be a studio apartment with a free layout, a very modest apartment with a minimum footage or a rich apartment. In such a dwelling, it’s comfortable to live by yourself and it’s very profitable to rent it out, as the prices for such services in large settlements are very high.
Another common type of real estate is at home. Demand is used, separately standing buildings, and houses for several families. In this case, each owner has his own way out to his personal homestead territory.
In order to enjoy the beauty of nature, it makes sense to become the owner of a cottage or villa in a picturesque area of the country. These places are simply created for family rest, fishing and relaxation. In addition, it is advantageous to use such facilities for profit and leasing, if they are in the resort area.
Expensive and cheap real estate in Norway & # 8212; how much are the objects?
Prices in Norway do not differ in availability, especially for real estate. The south-eastern part of the country and tourist areas in terms of housing are valued very highly. If you take the average, then for one square meter of a house or apartment in Norway you need to pay about 4-5 thousand euros. Accordingly, the usual country house will cost in the amount of 500 to 700 thousand euros. All property with a view of the fjords is even more expensive.
Of course, the price of any object depends on its state, appearance and location. The most expensive real estate is in Oslo, and the farther from major cities, the cheaper. For example, in rural areas or in small settlements, any housing will be much more affordable.
In the capital, everything depends on the area. For one square meter of apartments in the rich Frogner will have to pay about 7 thousand euros, and in Grunerlokke approximately 4,5 thousand euros respectively.
Newly built property is valued more. The average cost per square meter will be 7.5 thousand euros, and a three-room apartment will cost almost a million euros.
For comparison, in the center of Bergen the square meter of housing costs 3.5-4 thousand euros, and on the outskirts of the city – about 6,5 thousand euros. In Stavanger, one meter of housing in the central region costs the buyer from 3.7 to 5.5 thousand euros, depending on the area of the city.
Buying property in Norway & # 8212; taxes and the cost of maintenance.
By itself, the purchase of any object in Norway is an expensive treat, and in addition to the principal amount you will have to pay a lot of taxes. When registering a transaction, the state treasury must pay up to 10% of the value of the property. In addition, the country has a luxury tax on properties whose estimated value exceeds NOK 200,000, as well as a regular property tax, equal to 2.5% of its estimated value.
However, the last fee is collected only from those persons who, in addition to the main housing, have an additional, for example, a country holiday home. Also it is worth considering that when renting a house, you have to pay income tax at a rate of 28% of the amount received.
Despite all the financial nuances of the purchase procedure, real estate in Norway has two undeniable advantages:
Demand for housing exceeds supply. The real estate market is characterized by its resilience to world crises.
Legal aspects of buying and selling real estate in Norway. Possibility of buying on credit.
In Norway, the design of any transaction is as simple and quick as possible. The procedure for buying property in this country is completely transparent and excludes any fraud. Housing is acquired with the assistance of a real estate agent. It is he who is authorized to conclude deals and is responsible for the financial side of the matter.
All foreigners, including citizens of the Russian Federation, can buy property in Norway. To do this, you need to come to the North Kingdom and sign an agreement with a real estate agency, after which the company’s employees will be able to offer suitable options for houses or apartments. Of course, for their services they will ask for a commission of about 2.5% of the total.
According to the laws of the country, all real estate organizations must provide a short overview of the sold real estate objects, which includes the following items:
The name of the object and its cadastral number. Exact location. The total area of a land plot, house or apartment. Existing encumbrances. Estimated value of the object. Specifications.
As the demand for real estate exceeds the offer, when selling a house among the applicants, an auction is held, where the buyer who proposed the maximum price for the object is selected. When both parties agree, a contract is signed and the buyer makes an advance equal to 10% of the total amount.
To enter into property rights, it is necessary to sign on another important document – a special protocol. After that, the acquiring party undertakes to pay the remaining amount of money.
The transaction can not be executed without an identification number, so it must be received in advance. For a foreigner, this will not be a problem, since in such cases the Norwegian authorities issue temporary numbers.
Citizens of the Russian Federation can apply for a bank loan to purchase real estate, and if a foreigner has worked in the country for more than a year, then mortgage rates for him will be minimal. Usually, banks lend up to 90% of the total value of the facility.
Norway is an interesting and attractive country for investment, however, before taking serious steps and buying property, you should carefully weigh everything for “and” against. ”
Real estate in Norway & # 8212; safety and a high standard of living.