So much you can get in mortgages
Housing prices fell by 1.1 per cent in July, showing recent figures from the real estate industry’s housing price statistics.
Prices fall slightly in July is common. Overall, they have risen 6.8 percent in one year, and it is the apartments that increase the most.
The dream of getting a foot in the housing market seems far too many. Obviously, it is not impossible, but you must have a lot of equity and good salary if you are going to make a home purchase without parenting or a partner.
Not least, there are many who find that they need to lower their expectations a little if they want to get into the housing market.
You get a little for an average salary
The average annual gross income for those between 25 and 34 who has an income was according to the latest figures from Statistics Norway, NOK 374 400 in 2013.
This can give you a loan of around 1.5 million, considering that you have no loan from before. If you pay down $ 1500 on your student loan each month, according to Nordea’s mortgage calculator, you can borrow just over 1.3 million. If you have the deductible in order, you will have about 1.5 million to spend.
In other words, you are relatively dependent on parenting or having a cohabitant.
However, it is not impossible. The cheapest Oslo apartments for sale on Finn today are between 1.1 and 1.4 million.
However, the center-sized apartments have a total size of 15 square meters.
At the same time, you can move to Ammerud or Lambertseter, where you can get an apartment of 31 or 24 square meters, considering that the bidding round will not be too tough.
The city center gives you the most back
According to the consumer adviser in the Norwegian Real Estate Association, Carsten Henrik Pihl, a small apartment in the center can be a smart choice economically, but it is important to remember that you will actually stay there for a while before the money comes in..
Apartment prices in the largest cities today:
Oslo 3 360 037
Bergen 2 979 553
Trondheim 2 782 928
Stavanger 3 232 798
Tromsø: 3 276 583
The prices will be slightly higher than the median prices, which represent the apartment that has the lowest price of those more expensive than 50 percent of the apartments. This is because some very expensive apartments pull the average price up.
Oslo: 2 942 000
Bergen: 2 697 893
Trondheim: 2 550 127
Stavanger: 2 945 594
Tromsø: 2 910 000
Average square meter price:
Oslo: 61 408
Bergen: 47 187
Trondheim 46 755
Stavanger 40 792
Tromsø: 43 197
Source: Property Norway
– I even went for a small kick in the center, and got quite a big return on it, but it is simply asked if you have any choice today. To 1.5 million, there is a 19 square meter on Grünerløkka out now, but it will probably go for a little more, it also.
– When the apartments are getting so small, you must think about living conditions and well-being as well. Find out where you want to go.
Stavanger is Oslo’s counter pol. Housing prices have fallen by 1.1 per cent in the last year. Nevertheless, the city together with Oslo and Tromsø, the highest prices in the country.
Almost as expensive, but larger outside Oslo.
In return, both Tromsø and Stavanger have far lower square meters than the capital, which means you get better value.
Here too, it is recommended that you go for the downtown apartment.
– The question depends on the initial value of a buyer. Today, one can make good apartment purchases also within the center core, says regional manager at Krogsveen Rogaland, Kurt Frafjord.
– On a general basis, housing in central areas will be safer purchases in view of fluctuations in the housing market. By purchasing centrally, one would also be able to rent the apartment as an alternative to sales if that would be applicable.
However, you will need to get into the center.
– For one and a half million, there is probably not much to choose from in Stavanger – therefore also a difficult price range. However, it is possible to buy your own home also in Stavanger in this price range a little outside the center of the city center. The cheapest apartment today is a 21 sqm living room for 1. 350. 000 kroner, he says.
While Oslo, Tromsø and Stavanger are top in terms of prices in the largest cities, prices in Bergen and Trondheim are somewhat lower. In Trondheim you can now have 17 square meters at Hallseth or Lademoen, or you can embrace 39 square meters at Moholt to under 1.5 million.
The article continues underneath the image.
Pays to be two
The average price of apartments in Oslo is 3.3 million. Are you two, this can be done with two average income.
In most cases, an average apartment will say a two- or three-room, and – in relation to the average square meter price – between 50 and 60 square meters.
– When it comes to borrowing, it’s often a rule of thumb that you can borrow three to four times the income. That means that for a loan of approximately 2.8 million (3.3 minus equity), you must have an income of 700. 000 or above, says Pihl.
– If the income potential in the future is good, banks may be able to lend to someone with lower net income than this.
These figures apply to Oslo. In other words, are you two, you can do well with both earners below average income, also in the capital.
In Trondheim, which, with an average price of almost 2.8 million, has the lowest apartment prices among the five largest cities, you can do the same by down to 600,000 a year.
In such an apartment you will also often be able to rent a room. This can help you with a higher loan amount, but it is not certain.
– This means that you can increase your income with rental income. Banks are thinking a bit differently about this, so you have to talk to the bank, says Pihl.
Whether you get a loan depends on more factors than you earn enough and there is no rule saying that you can not borrow more than three or four times your income.
– When considering whether we can grant mortgages – and at what interest rate – we place emphasis on payment ability, willingness to pay and security, “says DNB Bank Communications Manager, Marit Elisabeth Giske.
The point is that you will be able to withstand any fluctuations in interest rates. Do you earn a little less in proportion to your salary, do you earn more, you can withstand more and earn more than four times your income.
– The income, of course, says a lot about the ability to pay and how much loan you can raise, but other conditions also play in.
May be flexible with equity
With both Nordea and DNB gets Click. no also stated that neither the self-sufficiency rule is completely locked up. It will certainly take a little while before this does not have to be met, but other factors can make you borrow even if you have a little less.
Should you buy a home?
Carsten Pihl tells Click. No, even though young home buyers are well-informed about housing, it is not everyone who is prepared for how much job it is to find the right home.
In a crowded market you have to bet that this can take both time and effort.
Here are his tips:
Get the funding in order: Talk to the bank first to know how big your budget is. Keep in mind that you need 15% equity and that you need to have some money for home improvement and possible refurbishment.
Find the right price level for you: In the big cities, the pressure in the housing market is high, so more homes go above the announced price. Correct price level means too many that you need to adjust the priorities in terms of size and / or area.
Go on many views: It takes time to find the right home, and with high pressures in the market you will have to go on multiple views and participate in multiple bidding rounds. Take this as a lesson about how the housing market works, and how different factors like area, floor and standard play in house prices.
Use eyes and nose on display : Carefully watch the view, read the prospect carefully in advance – especially the pages without images! Ask the real estate agent questions. Use your nose on display. If something smells bad and stuffy, there’s a reason for it. Ask about why!
Remember that bids bind! When you place the bid, it binds you if the seller accepts. Some believe that the property is “purchased” only when the contract is signed. It is not correct. The agreement is entered when the bid is accepted
(Source: Carsten Henrik Pihl) / NEF)
– The new mortgage regulations that came into force 1. July gives banks some room to exert flexibility when considering loan applications, says communication adviser in Nordea, Bente Paulson.
– This also applies to the assessment of the need for the customer to quote 15 percent equity. In this way, they do not necessarily have to meet the 15% equity requirement. This is, of course, assumed that they have the operational ability in order.
All applications are considered individually and can you show that you have been disciplined and good at saving, this will be positive.
– For those who want to get into the housing market, it’s a good start to start saving in BSU early and not least to have a job. Students should have a part-time job to raise funds and to show the bank that they have the ability to service a mortgage.