In Finland, when you acquire a property, you either buy real estate or a housing share. Housing shares are apartments in a building or terraced dwellings. These homes are held by real estate investment trusts or cooperatives. You purchase real estate when you purchase a detached home. Typically, real estate consists of a separate dwelling and the corresponding site.
Finding a property
You should be prepared to spend many months looking for a house. Private sellers, real estate companies, and home builders all sell houses. For instance, you may see advertisements for open houses in newspapers and online. When you locate a house that appeals to you, schedule a visit with the seller. A time when you may visit a house is sometimes included in the advertisements. You are not required to make a time reservation in such circumstances.
Permit when buying real estate
Real estate purchases made by people who are not citizens of the EU or EEA often need permission. Obtain a permit by contacting the Ministry of Defense. No permit is required when buying a home share. If purchasing property with an EU/EEA citizen spouse or common-law partner, no permit is needed either. For further information on permits and special cases, visit the Ministry of Defense website.
Learn about the state of the house and other issues
After you’ve located a house you like, compile all the pertinent information about it. You should specifically inquire about the house’s condition. Before buying a housing share, inquire about any planned modifications by the housing firm and associated costs. For example, an owner might face substantial expenses, like a plumbing overhaul costing tens of thousands of euros. The home manager can provide you with information about upcoming improvements.
Duties of the buyer and seller in property transactions
For a while after the sale, any flaws in the house are the seller’s responsibility. In the case of housing shares, the seller’s obligation to make good on flaws often lasts for two years. The seller’s obligation lasts for five years in the event of real estate. Sellers in law must disclose known property flaws to buyers. Failure to do so may lead to compensation claims by the buyer. Buyers should inspect for flaws pre-purchase; known or discoverable issues cannot be compensated for later. Compensation is mandatory for significant flaws that would have hindered the sale.
Mortgage
Most individuals use a mortgage to pay for their homes. A bank will accept mortgage applications from everyone. Your salary must be sufficient to enable you to repay the loan without difficulty for you to be approved for a mortgage. On their websites, several banks provide mortgage calculators. These tools help you assess your mortgage repayment ability in advance. If uncertain about mortgage approval, it’s wise to visit a bank for detailed discussions before the property purchase. Mortgages are repaid monthly or in installments, along with the bank’s loan interest.
Transfer tax
The transfer tax is another expense associated with purchasing a house. The transfer tax for purchasing a housing share is 2% of the home’s debt-free price. The transfer tax for real estate purchases is 4% of the property’s debt-free price. However, no transfer tax is applicable if the following conditions are met:
- The buyer’s age is between 18 and 39.
- The buyer has never purchased a house in Finland or another country before.
- At least 50% of the house is yours.
- It is your permanent house.
Getting a house
The contract is signed in the buyer’s bank if the home’s seller accepts the offer. Typically, the buyer, seller, and, if applicable, the real estate agent are present during the sales contract signing. This agreement outlines details such as the property’s size, cost, condition, and the buyer’s ownership transfer date. Buyers have the chance to review the deal’s terms before signing, typically drafted by the bank or realtor. After securing a home loan from the bank, the funds are transferred to the seller’s account.
Down payment
A down payment is an upfront payment made when purchasing a house. Buyers can provide a down payment to the seller during the sale preparation phase, often amounting to 4% of the home’s price. If lacking funds, one can include the down payment in their mortgage by borrowing it from the bank.
You may also like these articles:
Best schools in Finland to send your children to