Post new topic Reply to topic  [ 84 posts ]  Go to page Previous  1, 2, 3, 4, 5, 6  Next
Author Message
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Sun Jan 15, 2012 11:37 am 
Offline
Neo Landlord

Joined: Nov 8, 2007
Posts: 287
Location: Stockholm
Locals aren't too bothered because they're still in denial.
They think falling interest rates will save them. Falling interest rates might push out reaching the bottom by a few years, but the trend is currently not your friend if you own property in Sweden.

_________________
"Private wealth and public squalor"
John Kenneth Galbraith


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Tue Jan 17, 2012 10:02 pm 
Offline
Single Home Owner

Joined: Jan 31, 2009
Posts: 195
jamesblonde wrote:
Locals aren't too bothered because they're still in denial.
They think falling interest rates will save them. Falling interest rates might push out reaching the bottom by a few years, but the trend is currently not your friend if you own property in Sweden.


I would agree that its going to take a while for the mess to unwind, unless the local banks start having trouble in which case the house of cards could fall a lot more quickly. Anyway, here is the latest update, prices falling more than previously even if it is for the slow month of december.

http://www.thelocal.se/38548/20120117/


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Sun Feb 26, 2012 1:17 pm 
Offline
Nationalised
User avatar

Joined: Jul 26, 2009
Posts: 12765
Investors Ignore Nordic Housing Bubble Risks as Hunt for Havens Picks Up -> http://www.bloomberg.com/news/2012-01-1 ... ks-up.html

Quote:
Bond and currency investors in Europe have flocked to Scandinavia to escape the euro area’s debt crisis. They may need to rethink their bets as the risk of asset bubbles threatens to trigger losses in Norway and Sweden.

The notion that the Nordic region is a haven “is really a false perception,” said David Deddouche, a foreign-exchange strategist at Societe Generale SA in Paris, in an interview. “The risk is that at some stage there is a domestic development which pushes every investor out of the market at the same time and it is going to squeeze heavily. It’s quite dangerous.”

The risks aren’t reflected in the countries’ bond or currency markets, which investors are treating as havens from the euro area thanks to fiscal surpluses in Sweden and Norway. Sweden pays less than Germany to borrow for 10 years and Norway’s government bond yields slumped to a record-low last week, approaching parity with the largest euro-area economy.

there is more

_________________
Where are we GOING and why am I in this HAND BASKET?


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Fri Mar 02, 2012 1:09 pm 
Offline
Neo Landlord

Joined: Nov 8, 2007
Posts: 287
Location: Stockholm
Looks like the big step down has been pushed out another year at least, with the latest Riksbank's reductions in the interest rate, now down to 1.5%.
According to valueguard's house price index, prices rebounded a bit early in this year. Now with rates dropping on the inter-bank market, people will start loading up again with debt.
The Bloomberg article is on the money about the risks in scandinavia.

_________________
"Private wealth and public squalor"
John Kenneth Galbraith


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Wed Mar 14, 2012 8:50 pm 
Offline
Single Home Owner

Joined: Jan 31, 2009
Posts: 195
jamesblonde wrote:
Looks like the big step down has been pushed out another year at least, with the latest Riksbank's reductions in the interest rate, now down to 1.5%.
According to valueguard's house price index, prices rebounded a bit early in this year. Now with rates dropping on the inter-bank market, people will start loading up again with debt.


I'd have thought so too, but by pure fluke this evening I looked on Hemnet (the swedish Daft.ie) on the insistence of a work colleague who wants me to buy property, and settle down into the swedish way of life. Even for relatively central (and thus non heavily immigrant) parts of Stockholm like Bromma, prices on multiple properties from multiple agents were less than half what I would have expected them to be. At first I thought that it was just old fashioned low reserve to draw people in, despite the new "accepterat pris" policy that is supposed to be more realistic to the end actual selling price, but in other parts of the city the prices were as I would have expected them to be (ie 25-30k per m2). I also spoke to a colleague this evening who paid 15k per m2 for a place in Sollentuna which is a lot less than I would have thought possible a year ago.

So who knows... maybe some realism is finally effecting the market. I still won't be buying... might be leaving instead to head further afield


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Thu Mar 22, 2012 1:16 pm 
Offline
Back Home with Mammy

Joined: Mar 28, 2010
Posts: 54
Location: Sverige
I have a job in Sweden at the moment but the contract expires next year. As for getting a permanent contract, that seems to be a closed gig for Swedes only. There's no open discrimination in Sweden, most of it is done unsaid and behind the scenes.

As for house prices, they still look to high. As for the apartments, the purchase price might be coming down but the building service fees (avgift) are often upwards of 300 and 400 euros a month, which is frankly ridiculous. But it includes cable TV and heating, as Swedes remind me. The TV cables must be made from gold instead of copper.


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Thu Mar 22, 2012 7:33 pm 
Offline
Under CAB Investigation

Joined: Aug 10, 2010
Posts: 2565
blåbärssoppa wrote:
I have a job in Sweden at the moment but the contract expires next year. As for getting a permanent contract, that seems to be a closed gig for Swedes only. There's no open discrimination in Sweden, most of it is done unsaid and behind the scenes.

As for house prices, they still look to high. As for the apartments, the purchase price might be coming down but the building service fees (avgift) are often upwards of 300 and 400 euros a month, which is frankly ridiculous. But it includes cable TV and heating, as Swedes remind me. The TV cables must be made from gold instead of copper.

What are rents like in sweden if management charges are €300-400 per month?


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Thu Apr 19, 2012 10:13 pm 
Offline
Single Home Owner

Joined: Jan 31, 2009
Posts: 195
Landlord wrote:
What are rents like in sweden if management charges are €300-400 per month?


Extortionate due to a huge imbalance between supply and demand, to the degree that when a newcomer arrives into our work group with a 2 month paid accommodation by the company we immediately tell them to start looking for somewhere. Some have given up and just bought almost straight away. I'm currently paying €800 per month for a very basic 35m2 one bedroom apartment, although that comes with electricity and internet included. I could probably do better but its got a great location for proximity to transport to work and the city centre.

Thats Stockholm though. The rest of Sweden is probably a lot less crazy.


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Tue May 01, 2012 9:32 am 
Offline
Neo Landlord

Joined: Nov 8, 2007
Posts: 287
Location: Stockholm
Yorkie wrote:
Landlord wrote:
What are rents like in sweden if management charges are €300-400 per month?


Extortionate due to a huge imbalance between supply and demand, to the degree that when a newcomer arrives into our work group with a 2 month paid accommodation by the company we immediately tell them to start looking fot r somewhere. Some have given up and just bought almost straight away. I'm currently paying €800 per month for a very basic 35m2 one bedroom apartment, although that comes with electricity and internet included. I could probably do better but its got a great location for proximity to transport to work and the city centre.

Thats Stockholm though. The rest of Sweden is probably a lot less crazy.


Well, I married into the system. We pay €1000/month for a 3-bed 80sqm appartment about 5kms from the city centre. That includes heat, all costs except electricity and internet. But my wife was on a queue (waiting list) for 8 years to get that.

On other news, the list of bubble housing markets is now left at Canada, Sweden, Norway and Finland (Australia is now gone). Which one will go next? (I thought Sweden had gone too, but we need some exogenous shock to re-kick-start it here - like increases in the interbank rates).

_________________
"Private wealth and public squalor"
John Kenneth Galbraith


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Tue May 01, 2012 9:41 am 
Offline
Single Home Owner

Joined: Apr 10, 2012
Posts: 109
Yorkie wrote:
Landlord wrote:
What are rents like in sweden if management charges are €300-400 per month?


Extortionate due to a huge imbalance between supply and demand, to the degree that when a newcomer arrives into our work group with a 2 month paid accommodation by the company we immediately tell them to start looking for somewhere. Some have given up and just bought almost straight away. I'm currently paying €800 per month for a very basic 35m2 one bedroom apartment, although that comes with electricity and internet included. I could probably do better but its got a great location for proximity to transport to work and the city centre.

Thats Stockholm though. The rest of Sweden is probably a lot less crazy.



That's good value compared to Dublin mate! Electricity and internet included!!!! :shock:


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Tue Jun 26, 2012 10:14 pm 
Offline
Nationalised
User avatar

Joined: Jul 26, 2009
Posts: 12765
Borg Bashes Banks in Sweden Shielding Housing Bubble: Mortgages -> http://www.bloomberg.com/news/2012-06-2 ... gages.html

Quote:
Sweden’s banks have drawn criticism from Finance Minister Anders Borg for failing to cut mortgage rates. Their reluctance to do so is about the only thing preventing a full-blown housing bubble.

“What Borg wants is for banks to hand out cheaper loans without that increasing demand for loans,” Par Magnusson, chief analyst for Scandinavian rates at Royal Bank of Scotland Group Plc in Stockholm, said in an interview. “That’s an impossible equation.”

Swedish property prices have already risen too much, according to the National Housing Credit Guarantee Board, or BKN, which advises the government on housing finance. The group said residential properties are 20 percent overvalued after years of crisis policies kept interest rates low. Reducing mortgage rates further would spur credit growth and increase the risk of insolvencies if borrowing costs start to rise, BKN said.

there is more

_________________
Where are we GOING and why am I in this HAND BASKET?


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Sat Jun 30, 2012 11:53 am 
Offline
Back Home with Mammy

Joined: Mar 28, 2010
Posts: 54
Location: Sverige
Anders Borg is a chancer if there ever was one.

It annoys me that heating is included in the building fees. Anybody who knows a Swede knows that they like their heating on full blast all winter long so that they can prance around barefoot in shorts and t-shirt inside the house. And they leave the heat on full through the night as well.

I prefer it to be cool in the home, especially at night - and to use an extra blanket instead. But even if I turn all my radiators completely off, the house is still roasting hot, due to the heat coming from all the neighbouring apartments. And to think I'm paying for all that!


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Thu Jul 05, 2012 9:38 pm 
Offline
Neo Landlord

Joined: Nov 8, 2007
Posts: 287
Location: Stockholm
blåbärssoppa wrote:
Anders Borg is a chancer if there ever was one.


Agreed. He's loaded up to the hilt with personal debt. He bought a house a couple of years ago for 400,000 Euro in södermansland which is well under water, as well as a flat in the city for a few hundred thousand.
He's playing to the gallary just like the dispicable stamp-duty issue in the election in 2007. All his voters are loaded up to he hilt in debt too, so he's their champion.

Just repeating myself, but the bottoming out has been pushed out another year at least. No sign of any volatility in the inter-ban market or employment. Waiting for an exogenous shock to prick the bubble proper. It's still amazing that we went down 10% last year, and have pulled back most of that. People really just follow the simple algorithm of going to the bank, asking what they'll lend you, and then buying what you can with the money they'll lend you.

_________________
"Private wealth and public squalor"
John Kenneth Galbraith


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Mon Jul 16, 2012 10:55 am 
Offline
Back Home with Mammy

Joined: Mar 28, 2010
Posts: 54
Location: Sverige
The Swedes blindly trust the system. Which makes no sense, seeing as only 20 years ago their economy collapsed.


Top
 Profile  
 
 Post subject: Re: Swedish House Prices: The Latest Bubble Warning
PostPosted: Mon Jul 16, 2012 11:01 am 
Offline
Holiday Home Owner

Joined: Mar 2, 2010
Posts: 345
I met a Swede on a small Spanish island in March. He had just bought a block of apartments there. Sounds familiar.....

_________________
The coldest winter I ever spent was a summer in San Francisco


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 84 posts ]  Go to page Previous  1, 2, 3, 4, 5, 6  Next


Who is online

Users browsing this forum: Belview and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to: