Blog

Sweden is one of the Europe’s most challenging rental markets so buying property in Sweden is a difficult task, former patrons want to see how to buy a house as a foreigner rather than a renter. The country also has low interest rates, which can save newcomers money in the long run, especially when compared to moving and rental fees they have to pay for a second-hand lease.

If you want to live in the city or the countryside, you can use it as your guide to buying a house in Sweden.

Property Type

There are various types of properties to choose from in Sweden. It has options from condominiums, detach houses, link houses, and even rural areas. Some terminology may be misleading for earlier terms, such as “mansion” which refers to a single-family home rather than a large mansion-like property.

House Prices in Sweden

The average purchase price across Sweden is approximately 53,500 SEK per m 5, (5,200 USD). The average price to buy a house in Sweden’s most expensive city of Stockholm is around 74,900 SEK per m² (8,600,000).

The three most expensive municipalities in which to purchase property are Lidingo, Solna, and Dandridge. The cheapest prices can be found in Nykvarn and Södertälje in Greater Stockholm.

Property Purchase Process in Sweden

Although, it is desirable to buy your home with the help of a real estate agent. Many documents will require to be changed into Swedish. A real estate agent should be able to support you in this translation at no charge or a nominal fee.

To buy a house in Sweden, you will need a mortgage. To obtain a mortgage, you will need the following:

• Proof of employment and a steady income
• credit history
• residency permit
• personnummer
• Swedish ID Card

Depending on the bank, you may be asked for additional documents, but in general, these are standards. Only banks can lend you up to 75% of the value of the property. Fortunately, 30% of what you borrow is tax-deductible.

Process for Buying Property in Sweden

There are no legal restrictions against foreigners buying property in Sweden. Once both parties have agreed to the sale, the transfer is fairly quick and painless. However, like rent, the process of finding a home to buy can be the biggest challenge.

Although not as competitive as finding a rented apartment, there is often a bidding war when buying a house in Sweden.

Proceed to buy a house in Sweden

1. Bidding

Although purchasing a house in Sweden is slightly less stressful than renting one, some practices may amaze ex-pats. For example, applying to rent a place may feel like a never-ending waiting game, buying a house can feel like an auction house. Once you find a house that you like, you will need to place a bid. As other ex-pats and native shades are also more interested in hiring, you may find yourself in a harsh bidding war. Be prepared to keep your options open and sharpen your negotiation skills.

2. Conversations and Surveys

Once your bid is accepted, you will have to negotiate a purchase agreement. While these talks are going on, you surveyors should come out and inspect the property. The real estate agent, although usually hired by the seller, is legally working on both sides. If you feel unable to do so, they should be able to assist you in appointing surveyors.

3. Signature

After the investigation is complete, you and the seller will enter into a contract. This contract will be valid by the draft and real estate agent. You can ask for a translated copy in English, but know that a copy must be in Swedish. With the help of interrupt, you can set up with a qualified translator or real estate agent who speaks your language.

4. Down Payment

Although down payments may differ from seller to seller, on average you should only be charged 10%.

5. Bank and Final Signature

The final step to get the property will be to go to the office of the bank or real estate agent of you or the seller. This is when you will get the key to the house, sign the contract of sale, and work with the mortgage details as required. Furthermore, this is when the bank or real estate agent will send your final contract to be registered in your name. You should verify that everything is done and the property is officially yours in a few weeks.

Can you buy home in Sweden and achieve citizenship?

Unfortunately, it is not possible to buy a house in Sweden and obtain permanent residence or citizenship. The requirements for obtaining permanent residency or citizenship are based on the duration of your stay in Sweden. Buying a house also does not guarantee a visa because you need a residency visa to buy a home.

House or apartment rent

Although the process of renting a house or apartment in Sweden is not difficult, pre-occupants will struggle to find a place. However, there may be hope on the horizon. In 2019, fewer than 250 municipalities reported a decrease compared to more than 270, which was reported in previous years.

Average fare in Sweden

Swedish rent prices vary depending on the municipality and whether you live in an urban or rural area. Overall, the rent is high and it costs an average of 30% of the salary of every resident. To deal with the difficulty of an increasingly high market, the Swedish government sets a rent cover every year. Since 2000, rental prices have not seen an annual increase of more than 2%.

Most ex-pats prefer to live in one of Sweden’s five main cities: Stockholm, Malmö, Gothenburg, Uppsala, or Solna. In these cities, the minimum house rent in Sweden is less than 10,700 SEK (1,200 USD) per month, unless you are looking for a private room in the house.

Rental Procedures and Rules in Sweden

Whether you are renting as a foreigner in Sweden, or you are a native Swede, the biggest problem across the Scandinavian country is the lack of housing. It is especially prevalent in Swedish cities and largely affects students and ex-pats.

Unless you are really lucky, chances are you will live in a series of second-hand rentals before a first-hand contract in Sweden. A first-hand contract refers to renting directly from the property’s landlord. The second hand is hired, where you rent from a tenant who has a first-hand contract

Second-hand leases

Second-hand leases are generally more expensive than first-hand leases. According to recent data, second-hand leases can be 65% longer on average than first-hand leases. Sweden has recently seen an increase in landlords who only fill second-hand leases because they know that people are desperate for housing.