What Is The Role Of The Real Estate Broker In Norway Do The Seller And Buyer Both Have Brokers Working On Their Behalf During A Transaction
Under the law, we are all required to act in accordance with good real estate practices and be independent third party to every transaction. This means we are required to provide the seller and buyer information that is relevant to sale process.
In other words its not usual to have one broker for both the buyer and the seller during the transaction but some people have a broker that helps them with everything from selling to buying.
There are different types of real estate agents in Norway, with the most common being eiendomsmegler, eiendomsmeglerfullmektig and megler.
Eiendomsmegler means that the agent has had three years of real estate education after high school and have at least two years experience. Eiendomsmeglerfullmektig means the agent has had three years of real estate school but less than 2 years experience.
A megler is someone who has worked in the real estate industry for a period before the stricter requirements in real estate law were adopted. Meglers have had to pass a special test approved by the Finanstilsynet.
Internet And Mobile Phones
This section covers internet and cell phones so you can get in touch with your loved ones back home. Wondering about television? We provide an overview of this as well.
How to Get a Phone Number
To get set up with a mobile phone in Norway, you will want to look to the countrys three main providers:
- Telenor Mobil
Property For Sale In Norway Norwegian Property For Sale
Find Apartments & Houses for sale in Norway. All property for sale in Norway. Property in Norway. Find property in Norway with Rightmove.co.uk the UK’s number one property website. We are pleased to offer a range of property in Norway. If you are looking for your dream property in Norway, you have come to the right place!
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Bubble Territory Maybe In Oslo Where Rent Rises Lag House Price Increases
Is Norway experiencing a housing bubble? Normally there is a clear pattern to housing bubbles, with house price rises greatly outpacing rent rises during the boom. In Norway, however, while the house price index rose by about 39.2% from 2012 to 2020, the average monthly rent rose between 38.1% for one-bedroom dwellings and 50.5% for dwellings with five or more bedrooms, based on the figures from Statistics Norway.
However in Oslo and its neighbouring municipality Bærum, house prices are outpacing rents. Oslos HPI rose strongly by 62.3% from 2012 to 2020, while average monthly rents rose by around 38 to 44% over the same period.
There are two main reasons why house prices are outpacing rental rises in Oslo:
According to Morgen Granhaug of M3 Rental, many investors have purchased apartments to rent out, which keeps rent prices down.
Owning a house is relatively cheaper than renting a property, argues Nordeas chief economist Kjetil Olsen and chief analyst Erik Bruce, partly due to the strong tax support for owning. He argues that it still makes sense to purchase a 30 square metres residence for NOK 3 million , rather than renting the same place.
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Buying A House In Norway
A Norwegian real estate agent gives us the lowdown on the ins and outs of buying property in Norway.
Finding a place to live in a major Norwegian city such as Oslo or Stavanger can be an overwhelming and daunting task, not to mention expensive.
Add into the mix all of the nuances that come along with buying instead of renting a home in Norway, and one might find themselves swirled into the perfect storm of confusion and frustration.
If you’re considering buying a place, it’s well worth renting a home first. This will help you decide on an area, plus whether a certain size place is going to be enough for you. Not only that, it gives you a get out clause should life in Norway not work out for you!
Once you’ve decided to buy, do your research. Even if you’ve owned property in other countries before, the Norwegian system will be different to what you’re used to. First off, you’ll need to choose between freehold or a form of shared ownership such as a borettslag.
Buying A House In Eastern Norway: Oslo Drammen
Eastern Norway is the most populated part of the country with Oslo and Drammen as well-known destinations for tourists and foreign real estate buyers alike. The real estate market offers a diverse property choice including traditional red-painted homes, English style homes, modern villas, and historic old town properties.
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Investment Analysis Of Norwegian Real Estate Market
Lalaine C. Delmendo |April 10, 2021
After a brief slowdown in early-2018, Norways house price growth is accelerating again. Falling interest rates and limited housing supply are working their magic.
The nationwide house price index rose by 7.11% during 2020, the biggest y-o-y increase since Q2 2017, according to Statistics Norway. When adjusted for inflation, Norwegian house prices rose 5.75% y-o-y in 2020. During the last quarter house prices rose just 0.32% .
During 2020:
- In Bergen, the house price index rose by 7.42% during 2020 an improvement from the previous years 4.16% growth and its best performance in six years. On a quarterly basis, house prices rose slightly by 0.36% during the latest quarter.
- In Oslo including Bærum, the house price index rose by 7.83% during 2020 , following a 4.58% y-o-y increase in 2019. During the latest quarter, house prices increased 3.08% .
- In Stavanger, house prices rose by almost 10% y-o-y last year, in sharp contrast to a 3.22% decline in 2019. Quarter-on-quarter, house prices fell by 0.77% in Q4 2020 .
- In Trondheim, house prices rose by 6.43% y-o-y , up from the prior years miniscule rise of 0.1%. During the latest quarter, house prices were up by 1.55% in Q4 2020 .
Demand is rising again, after a temporary slowdown in Q1 2020 due to pandemic-related restrictions. During 2020, residential property sales in Norway rose by 3.7% to 96,045 units, according to Statistics Norway, though in Oslo sales were down by 2.5% to 12,417 units.
And What About Selling Property In Norway What Does That Process Entail
First of I would recommend finding a good real estate broker. You can talk to colleagues or check out www.eiendomsmeglerguiden.no for info about real estate brokers in Norway. This site has guides, reviews and references from brokers in different areas around Norway and is a good tool to use.
When you find a real estate broker youd like to work with, you normally meet them at your home for a viewing of your property. The broker then does a walk through valuation of your property to determine its value.
If you like the broker and agree that youd like to work with them to sell your property, you sign a written agreement with them in order to proceed in selling your home.
Prior to the house being listed on the market, youll need to fill out the energimerking form online and submit a written declaration form called an egenerklæring. These forms establish the energy efficiency of the property and provide notice to potential buyers if there are problems with the house.
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The broker will arrange a photographer and takstmann so the prospectus can be made and the property listed on popular real estate web sites. An open house is normally held 5-14 days after the property is first shown online.
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What Words Of Wisdom Can You Offer First Time Buyers Who May Be From Another Country
I have not sold anything in the US or the UK yet but I do know a thing or two about buying real estate in Norway. My advice is set your must have list and try to find a property which suits your lifestyle.
Do not try to find a bargain or a property that you think you can flip just to make money. Think long term not a quick investment.
Id also recommend expats contact a broker and tell him/her what they are looking for so the broker can guide them to the house/apartment that’s best for their lifestyle.
This is not a standard thing to do but I have at least 5 regular customers that use me for finding both homes and investments for them in the market. I dont charge anything for this but providing this extra service helps me with referrals.
Owner Occupancy Is Strongly Subsidized By The State
State policy has had a strong impact on housing preferences in Norway:
- Preferential interest rates are offered to households through the State Housing Bank.
- Buyers can purchase municipal land at subsidized prices.
- Owner-occupiers get tax relief on mortgage interest payments.
- Owner-occupied housing is taxed at a lower effective rate than rental housing.
- Owner-occupied dwellings are capital gains tax exempt.
The long-term impact of all these measures has been a massive shift in the structure of Norways housing market. In 1920, 47% of Norways households were renters. But by early-2020 only 17.9% rented, while around 70.6% were freeholders and 11.5% shareholders.
Oslo has the lowest portion of homeowners at about 42.4%, while 25.9% of households in Oslo rent, with shareholders 31.6% of total households.
At the same time, there is a consensus that the free market does not provide sufficient housing for the poor. Social rental housing made up around 15% of total rental stock in Norway.
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Looking For Your Dream Home In Norwaydiscover The Definitive Selection Of The Country’s Best Modern And Historic Houses Luxury Log Cabins And Mountiain Chalets
Norway is globally known for its high living standards. The country has been continuously ranked as the best place to live according to the annual United Nations Human Development Reports. Its no wonder Norways real estate attracts great attention from affluent foreign buyers.
In this article, we give you an overview of the best locations to buy a house in Norway, from well-known spots like Oslo, Bergen, Haugesund, Alesund, Tromso or Geilo to the towns of Northern Norway.
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Key Rate At Record Low Mortgage Interest Rates Falling Rapidly
Norges Bank, the countrys central bank, kept its key rate at 0% in March 2021, after cutting rates four times last year. As a result housing loan rates are falling sharply.
When there are clear signs that economic conditions are normalising, it will again be appropriate to raise the policy rate gradually from todays level, says Governor Øystein Olsen.
In February 2021, the average interest rate for new housing loans fell to 1.77%, sharply down from 3.03% in February 2020, according to Statistics Norway.
Over the same period:
- Floating interest rate housing loans are: 1.76%, down from 3.03% a year earlier
- Fixed interest rate housing loans are: 2.05%, down from 2.94% a year earlier
- Fixed interest rate housing loans are: 1.82%, down from 2.91% a year ago
- Fixed interest rate housing loans are: 1.97%, down from 2.95% in February 2020
- Fixed interest rate housing loans are: 2.31%, down from 2.97% a year earlier
How Does The Broker In The Transaction Get Paid And What Fees Can The Buyer Or Seller Expect
The broker is paid on commission after the tax is paid. The amount of commission varies from sale to sale and broker to broker. The amount of commission per sales transaction is not mandated by law.
Upfront, the seller normally only pays the takstmann upfront because they are contracted specialists and do not work for the broker. All other costs associated with the sale are paid when the transaction is completed.
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Mortgage Loan Restrictions Extended
These low interest rates require the Ministry of Finance to keep a tight watch on lending. Norway has the third-highest level of debt-to-income among OECD nations at more than 231%, behind only Denmark and the Netherlands – almost double its level in 1995. The high debt of Norwegian households still pose significant risk to the economy and to jobs, said the Finance Ministry.
To curb rapidly rising house prices the government introduced tough new residential mortgage loans requirements, which were recently extended until December 31, 2024. Thats why Norways mortgage market shrunk to about 62% of GDP last year, down from 84% of GDP in 2016. The rules include:
- A borrowing cap less than five times borrowers gross income
- Mortgages to last a shorter time
- In Oslo, an equity requirement of at least 40% for secondary home buyers, as opposed to the 15% equity for first-time buyers
- Lenders should make allowance for an interest rate increase of 5 percentage points when assessing a borrowers debt-servicing ability.
DNB, Nordea and Danske Bank are among the countrys top mortgage lenders.
Norways Long House Price Boom
Prices of existing detached houses in Oslo rose by 193% between 2002 and 2020 , to NOK 60,603 per square metres .
In Norway as a whole, existing detached house prices rose 135% over the same period. An existing detached house in Norway costs an average NOK 26,449 per sq. m in 2020, up 3% from a year earlier, according to Statistics Norway.
During eight periods since 1990, house prices in Norway have risen by more than 10% annually, at least in nominal terms:
- Q1 1994 – Q4 1994: average y-o-y growth of 13.3%
- Q4 1996 – Q3 1998: 12%
- Q3 1999 – Q3 2000: 16.8%
- Q2 2004 – Q4 2004: 10.4%
- Q1 2006 – Q3 2007: 14%
- Q4 2009 – Q1 2010: 11.2%
- Q1 2010 – Q2 2013: 25.9%
- Q4 2013 Q4 2020: 37.8%
Causes of these strong house price increases:
- strong economic growth
Annual price falls were observed only in four periods:
- Q1 1993 – Q2 1993: -3.2%
- Q2 2003: -1.1%
- Q3 2008 – Q2 2009: -4%
- Q1 2018: -1.1%
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Real Estate In The Western Coast: Bergen Flam Alesund Olden Haugesund Stavanger Trondheim
Welcome to the home of the fjord. Bergen is the most well-known and sought-after location but the towns of Haugesund and Stavanger located 100-150 km south of Bergen can offer equally beautiful views and attractive housing choices.
Alesund and Trondheim are situated 400 km and 700 km north of Bergen. These are While, Flam and Olden are small towns in proximity to Bergen and Alesund with more beneficial property prices.
Demand Is Rising Again
After a temporary slowdown in Q1 2020 due to pandemic-related restrictions, demand is now rising again. By property type:
- Detached houses: sales rose by 6.5% y-o-y to 36,516 units in 2020
- Houses with 2 dwelling units: sales rose by 6.2% y-o-y to 8,801 units last year
- Multi-dwellings: sales increased 4.1% y-o-y to 39,244 units last year
- Row houses: sales fell by 3.9% y-o-y to 6,864 units in 2020
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Property In Norwegian Mountains: Geilo Hemsedal Trysil Lillehammer Hafjell
Norwegian mountains offer world-class ski resorts but can also be an excellent year-round outdoor playground for all ages with its fine dining restaurants, spas and wellness facilities. Mountain cottages and chalets are the most popular choices amongst European buyers.
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Stavanger Has A Large Expat Community Many Of Whom Are Utterly Shocked At The Real Estate Prices Here Why Is Real Estate In Stavanger So Expensive
Stavanger is an attractive area to live in where salaries are above the national average and the education level is higher than average as well. It is known for having access to great outdoor activities such as surfing, hiking, biking and some of Norways best beaches.
Stavanger is also home to cultural events like the theatre and concert house as well as sporting events. Most of the industry here is related to the energy sector, which tends to have higher salaries, thus supporting a higher standard of living and higher house prices.
Also, there is an increase in people moving to this area from all over Norway and the world for jobs, further increasing the demand for properties in Stavanger.
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