Property purchases by foreigners are not prohibited in Sweden. Due to the smooth and simple nature of the purchasing procedure, expats residing in Sweden have the option to own homes rather than choose rental housing. A robust economy and stable environment have attracted a lot of property investors to the Swedish real estate market.
The use of a realtor
Direct property purchases from owners are available. However, it is customary to use a property agent. The seller employs and pays commissions for real estate agents in practically every transaction on the Swedish property market. Consider partnering with a real estate agent for assistance in your search, acting as a valuable resource in dealings with other brokers and vendors. Real estate agents in Sweden are required by law to behave impartially toward both sellers and buyers. The purchase of property from a Swedish real estate agent should thus be secure. The Swedish Estate Agents Inspectorate may be contacted if you believe an agent is acting improperly.
Property showing
Typically, information about houses for sale may be discovered in local and regional media, online, via housing firms, and from property brokers. Sunday afternoons are reserved for 30-minute to 1-hour-long property showings. There may be 10 to 20 more persons seeing the property, but bidders have the option of scheduling a private showing.
The bidding process
Remember that the Swedish real estate market functions via a system of bids. Potential purchasers may monitor the bid on the Internet since bidding is done openly. A definite budget must be established by the buyer since there are no rules governing the bidding procedure and costs might increase practically immediately. A contract, which is the sole legally binding document, will be signed after the seller selects an appealing offer.
Taxation and fees
Permanent occupants of Sweden might apply for a loan to purchase a house if they have consistent work and pay. In Sweden, most banks give home loans to up to 75% of the property’s estimation. Any borrower will be subject to credit checks, and although repayment schedules are variable, they typically last 20 years. Interest rates on mortgages are low and they often vary from 2% to 2.5%. A common practice is to use a property agent’s service. Agent fees are typically paid by the seller and range from three to five percent of the transaction. The purchaser should also pay the following fees:
- 20% deposit upon offer acceptance.
- Real estate tax: 0.2% to 2.8% on the property’s tax-assessed value.
- Stamp duty: 4.25% of the property’s assessed value.
- Registration fee: SEK 825 or €96.
- Solicitor’s fee: 1% to 4% of the purchase price.
- Approximately 1% for stamp duty.
The process of registering a property in Sweden takes roughly 14 business days to complete. The hiring of a property agent is often all that is necessary to acquire a residential property; legal counsel is not always necessary.
Best places to buy a house
Sweden’s three most notable cities and sought-after real estate locations are Stockholm, Göteborg, and Malmö, despite the soaring prices of homes. Göteborg is Sweden’s industrial center, whereas Stockholm is a heavily urbanized but historically rich city. For people who commute to Copenhagen, Denmark, easily accessible Malmö offers a cozier feel. Malmö’s property costs are less than those in Stockholm and Göteborg. Falsterbo and Lund, a town with a university, are two other sites for desirable real estate. The following are some examples of the typical prices for homes on the Swedish property market:
- Apartment in Stockholm, 50 square meters, $180,000
- A 200 square meter flat in Stockholm is for sale for €900,000.
- Apartment in Göteborg, 40 square meters, for €75,000
- House with three bedrooms in Lund or Falsterbo for €350,000
- $40,000 for a cottage outside the city.
- The cost of a large residence outside the city center is €100,000.
- Property on a lake in the north would cost €25,000.
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