There are an unusually large number of cabins for sale and rarely low interest among buyers, according to Finn.no.
But there are two exceptions:
- For cabins over NOK 10 million, the interest is as great as last year.
- For cabins under NOK 2 million, interest is even greater than last year.
The cabins in the lowest price segment are therefore of greatest interest. Nettavisen recently wrote about a cottage coup for less than a million.
Mountain cabins at different prices
Source: Finn.no
There are a record number of mountain cabins for sale on Finn.no. According to Finn.no, there are only half as many applicants per advertisement compared to last year. The exception is in the category over ten million kroner, where the same number of applicants as last year. For those under two million kroner, more people are applying this year than last year.
More cabins, fewer applicants
According to Finn.no, interest has waned. Far fewer are looking for mountain cabins now than last year.
Each ad receives half as many visits as last year. At the same time, there is more to choose from. You have to go back five years to find a period when there were more mountain huts available.
But among the expensive cabins, there is still usable space. Estate agent Stig Henning Svartor at Privatmegleren in Lillehammer notices this.
– We have sold good objects in recent weeks. One went for 19.8 million, one for 24 and one for 27.5 million, says Svartor.
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Own gym
The expensive cabins naturally have a high standard. Sauna and garage are a matter of course. They often have their own gym and billiards room as well.
– There is good quality in all stages. Both technical solutions and location match. In addition, the price must also be right and that can sometimes be a challenge. The market is very selective and enlightened, says Svartor.
– We recently sold for 27.5 million which met all criteria for a buyer. Then it was easier to reach the goal with a good price, both for buyer and seller, says Svartor.
The brokerage office in Lillehammer sells around 100 leisure properties on Hafjell and in Kvitfjell each year. A handful of these are sold for around 20 million and above, according to Svartor.
– Those who buy are often property developers, lawyers, stockbrokers. Age can be 30 to 55. They mainly live in the Oslo area, says Svartor.
– Can save tax
The most expensive cabins also remained the best in price last year, according to Eiendom Norge. They keep statistics on prices, purchases and sales.
– There can be several reasons why the expensive ones hold up well in price. The buyers in this segment more often have ownership income than just salary income, and in this sense they are less affected by rising interest rates, says CEO of Eiendom Norge, Henning Lauridsen to Nettavisen.
For people with a lot of money, a holiday home can also be financially beneficial.
– It can also be beneficial in terms of taxation. Cabins often have a much lower assessed value than sales value. This means that it can be beneficial for wealth tax to have money in expensive cabins, says Lauridsen.
– Favorable tax for cabins
Tax expert, professor emeritus at BI Business School, Ole Gjems-Onstad, confirms that the tax rules are favorable for leisure properties.
– Leisure properties can have a low appraised value. The assessed value is a maximum of 30 per cent of the market value, in many cases lower, says Gjems-Onstad.
This makes it possible for people with assets of over NOK 20 million to save tax by investing in leisure property.
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– Saves 11,000 per million
– The savings will be 1.1 per cent or NOK 11,000 per million. If you buy a leisure property for 15 million, the assessed value is a maximum of 4.5 million. Then the savings will be 11,000 times 10.5, which is equal to NOK 116,500 per year, says Gjems-Onstad.
Gjems-Onstad believes that tax can be a contributing motive for buying the most expensive properties, but he doubts that it is the only motive.
– It is optimistic to believe that the favorable taxation for leisure properties will remain. The Torvik committee proposes a drastic increase to market value. It is unlikely to be adopted, but the tax authorities are working on a new valuation model. The estimated values will probably be closer to the market price over time, says Gjems-Onstad.
– Not talking about taxes
Estate agent Stig Henning Svartor has several properties for sale for NOK 20 million and more. He does not rule out that tax may help to explain the continued interest in the expensive cabins.
– Tax and assessed value can of course be a contributing factor. But it is not a topic that is addressed by the stakeholders we have. But it can certainly be an underlying theme for those in question, says Svartor.
