All posts tagged: real estate sweden

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Investment Real Estate Strategy #2: Buy–Repair–Sell

Last time we spoke about profiting from a real estate investment using an exit strategy. Today we add more (exit) strategies. The Buy-Rent–Sell strategy we discussed earlier is an endeavor that usually lasts only 1-2 years. In other words, cash-in while the getting is good. In the last 20 years, Swedish real estate has increased in value with the exception of 2008 when prices were slightly down, but then suddenly increased the following years. The funds acquired from the sale of property (the exit) is a huge plus when added to the cash flow created from rent. Today, a 50 square meter apartment in Solna would cost you roughly 2M SEK, which can then be sold for 3M SEK in 1.5 years. That’s 1M SEK in cash flow on a 300,000 SEK investment. Couple that with cash flow from rent, and your ROI would triple! STRATEGY 2: Buy–Repair–Sell This strategy still works in the UK and other countries, but seldom is it profitable in Sweden—however, it was profitable several years ago. In comparison to other real …

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Does Real Estate Investment Work in Sweden?

As a matter of fact it does. So why continue reading this article if you already know the answer? Read on and learn why real estate investment works in Sweden. Historical data. Swedish real estate prices were far less volatile than, for instance, Norway and Holland between 1875 and 1957. However, since 1981 Swedish real estate values have consistently risen—even during 1991-1994 when economies around the globe suffered.Overall Swedish real estate value has increased 13.2% over the last 120 years. Between 1995 and 2011 real estate prices grew at the average rate of 5.7% annually. Compared even to the USA (0.4% annual increase 1892-2004), this is a surprisingly optimistic number! Big city power! Stockholm and Gothenburg are right now seeing tremendous growth rates. In 2014 and 2015, Stockholm has expanded its real estate worth by 17 %, Gothenburg 19%, and Sweden as a whole 14 %. Location, location, location! Since 2005 the magic number is (+) 61%! This increase in real estate prices is a reflection of a stable, growing economy.And most native Stockholmers would …