Staying in the nursery room can be a solution for home-looking youth.
The search for a place to live is experienced tough for many young people, including because they have little or no equity. And with the banks’ increased equity requirements, the hunt has become even more difficult. So no matter how much you read the housing ads and are on display, many young people find it impossible to get their first home.
However, there are opportunities, for example, if you are willing to adjust their requirements.
– It’s about putting both legs in the ground and realistic orientation. Because it’s not getting big, new and central right away, says economist at Sparebank 1, Magne Gundersen, to click. no.
He believes a good start will be to establish a long-term plan for his housing project.
Continue living at home
Magne Gundersen has a proposal for young people on housing hunting that may not fall in very good soil with pregnant children, and it is to continue to live at home.
– I find that many young people are struggling to get home, because if one stays out, it may be a gold mine to stay home for a year or two, he emphasizes.
– For example, if you do not struggle to find a place to live, you can get a good deal through BSU. And then it will be a nice thing to get used to to save.
Gundersen emphasizes that the BSU scheme limits do not have to be a savings ceiling.
– It’s allowed to save more and it’s smart.
Consumer economist Christin Warloe at Nordea has completed graduates, who have to go out in the rental market, to continue living on student budget.
– If one has to rent, I would have tried to live as affordable as possible, because this gives a greater savings potential to acquire the necessary equity, she says to clicks. no.
Youth Housing for Youth
- Maximum deposit per year is set at kr 20,000
- You can get 20% of annual deposits deducted from income tax, ie up to NOK 4000.
- Maximum deposit is $ 150,000.
- You can save on BSU up to and including the year of age 33.
At the Norwegian Institute for Urban and Regional Research (NIBR), there have not been any indications at the present time that it has become more difficult for young people to enter the housing market.
– Our evidence for so long that it takes longer for young people to acquire their first home, but the figures also give an indication that more and more young people enter into the housing market with help from their parents, said researcher Kim Astrup to click. no.
– But the question is what happens to those who do not have parents who can help and that could be a future issue.
– Can create social divisions
Astrup and his colleagues have calculated how long it takes to save up to the banks’ equity requirements.
– We have come to the conclusion that it will take up ten years.
This means that as a young housing applicant, you may need help, and in this context, Astrup shows, among other things, the scheme of start-up loans managed by Husbanken.
– This is a scheme that is often forgotten in the debate about the youth and housing market. In the past, however, it has been a question of limiting this offer because it is perceived to be too broad. If that happens, more could fall outside and social divisions are established with regard to who comes into the housing market and not.
Housing Bank Start Loans
From the public side, there is little help for those who struggle to enter the housing market. If you do not belong to the group covered by the Housing Bank’s Home Loan Scheme.
– Too often conflict and arguing occur
“Loans are a loan scheme for those who struggle to settle in the bus market or are hesitant to bend in their city center”, the Housing Bank writes about the scheme.
But it’s not the usual first-time creator scheme coined.
– Young people who are in the establishment phase and who only have trouble acquiring 15 percent equity will not be included under the scheme, “explains the consultant at the Housing Bank, Behrooz Elyasi, to the click. no.
– You must have had a long-term problem of obtaining funding or problems keeping your home in order to take into account.
However, there is a tiny opening also for ordinary, home-looking youngsters.
– It is the municipalities that administer the scheme, and in some municipalities they also oppose applications from ordinary first-time builders, but it is preferable to avoid relocations, elucidates Elyasi.
He further explains that the scheme will most likely be tightened.
– The Ministry of Local Government and Regional Development has proposed amendments to the regulations for start-up loans for consultation, and the proposal adds a tightening to the ground.
In the past, it was possible to borrow the entire purchase price, but with the new equity requirements you have to set 15% equity yourself. For young people who like to come straight from studies and ikek have had the opportunity to save up, this requirement will be perceived as a major obstacle on the way to housing flow.
However, there are several ways to reduce this barrier, but it means having parents who can contribute.
How to find the cheapest loan
– Our counselors find that parenting support is getting more and more common, “says Nordea, Christine Warloe, Consumer Economist, Clicks.. no.
– And there are essentially three ways parents can contribute. By providing security in their own homes, so-called lenders or by pure monetary support, for example in the form of advances in inheritance.
Security in parents’ homes
Security in parents’ homes is the option when the child’s equity does not extend. For example, if the child has only five percent equity, security in the parents’ homes could fill up the remaining ten percentages.
On their websites, Nordea has the option of limiting the amount of surrender (additional security), so that the parents do not even come into a financial disadvantage if the amount is to be paid.
“The amount of the claim should be as low as possible and never greater than you can pay this down if the child does not comply with its obligations”, the advice from Nordea.
Parents as a lender
The alternative to the parent as a lender can be a help in cases where the child’s salary limits the size of the loan.
– The usual rule is to borrow three times the annual salary, with deductions for any student loans, explains Warloe.
For example, you only have 400,000 in salary, meaning that you can only borrow 1.2 million and it is not far in today’s housing market. But if one of the parents is a co-lender, then his salary will be counted, and suddenly the loan amount can be significantly increased.
Move here and save millions
The danger of such a scheme is that it extends the child’s ability to pay to the breakpoint, and the consequence may be that the parents must enter and contribute.
– And if the bank finds that such a scheme does not match the child’s payment system, then the bank has the duty to discourage.
A third option for parents to help their home-looking children is to give them direct cash support. This can be given as an advance on inheritance, where the exemption amount for inheritance tax is currently NOK 470,000 (from each parent).
Another option is to provide annual funds as a contribution to repayment of loans. In such cases there is a limit of 1/2 G (approximately 42,000) for inheritance tax exemptions. This means that each parent can contribute 1/2 G.
Inn on the rental market
But, as Kim Astrup suggests, it’s by no means all young people who have the opportunity to get help from their parents, and what should they do?.
– The rental market is the only option if you do not have sufficient equity or can provide a sufficient mortgage, describes Warloe.
– And then it may make sense to try to minimize rental expenses as much as possible, so you can save a home purchase. For example, one can try to find someone to rent with, adds Gundersen.
Warloe generally believes that getting into the housing market is about sacrificing something.
One key press reveals whether the apartment has a closing price
– Many people come into the bank and have big thoughts about how to live, but there are not many people who have the opportunity to.
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