THE ONLINE NEWSPAPER/NIDAROS: Solveig Parelius Råbakk (23) secured her first home in Trondheim for NOK 1.875 million in January.
– It felt quite unreal, the 23-year-old tells Nidaros about the experience of securing his first home.
She started looking for her own home last summer, and was viewing this apartment a short time later.
– What was it like to be out as a first-time buyer?
– You learn as you go. There is no manual, so I felt a little green. But I feel the brokers are good at their job and with advice from the bank and parents, who have bought before and have some experience, I could get guidance along the way, says Råbakk.
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Applauds the thinking
Eiendomstopp Grethe Meier, CEO of Privatmegleren applauds Råbakk’s thinking:
– What she is doing is one of the smartest things you can do as a young person entering the housing market. It is much better to buy a home with a loan that you can service a little outside the city center rather than renting in the middle of the city centre.
She further explains that when you rent in the center of the city, money is in many ways straight out of the window.
– What you pay into your own home is something you believe will increase in value. It is also a form of saving, and it is unlikely that it is much more pleasant to do maintenance on your own home than when you rent.
Meier himself has a son who is about to enter the housing market now.
– I have said that now you have a window, and you must hurry.
That’s because she believes in a house price rise this year, and even more so in the next two years.
– This means that the supply side of housing is only going to be lower. If you have the chance to get into the housing market now, I would do it.
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Bidding round
When it was time to submit an offer for the apartment, Råbakk says that she wanted to push the price down, while the seller wanted to raise it.
– Then I submitted a bid and said that this is the last bid. I thought it wasn’t going to be accepted, but then I got a call a few hours later and was told that the bid had been approved, she says and continues:
– It felt unreal for a long time. You talk hypothetically for a very long time, but when we started with contract meetings, takeover and everything that needs to be done, it felt much more real.
It is now exactly one month since Råbakk took over the keys to his first own apartment.
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– It has gone in one go, she says.
Marte Herje Strømme, analyst at Prognosesenteret, tells Nettavisen that it is always a good idea to get into a market on the way up.
– But it is a tough market to enter in view of the interest burden you now have.
She says that although prices have fallen throughout last year, and may fluctuate slightly during the year, the interest rate is still at a high level. She believes this means that it is still a big financial challenge to get into the housing market.
Surety
Råbakk says that she hadn’t saved much for the equity she needed to get a loan, but then her parents stepped in.
– We have a cabin that my father built. It was used as a pledge so that my father could stand as surety. Otherwise it would have taken much longer for me to enter the market.
Meier in Privatmegleren says it is very common for young first-time buyers to have a guarantor.
– The way the housing market has developed, it is almost impossible to manage as a first-time buyer with the equity requirement that exists. You won’t be able to save as much if you don’t live at home.
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She explains that many people may have to rent, they may have studied and have student loans, and have to save on the side.
– Many people get help from their parents, either as guarantors or direct grants.
She further explains that her generation (Meier will soon be 60) has been part of an extreme rise in prices from the 90s onwards.
– We have been so lucky and received a formidable price development, and a wealth development that we will never get again. We have drawn the winning lottery ticket, and received the best price development ever.
– It is not a given that can continue to the same extent, she says.
Little chance without parents
Meier further says that those who do not have parents who can help have little chance of entering the housing market.
– We get a bigger class divide. Those who get into the housing market are often those who have their parent bank behind them. For those who do not have it, they often go to the rental market, which is getting tougher and tougher because there are far too few rental properties.
This causes the prices to go up.
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– I am afraid that some will not be able to afford to rent either. Then you may not have parents who can help with the rent either. Then you have to stay at home much, much longer.
– Do you think we will see an increase in more people choosing to live in collective housing in the future?
– Yes, it may well be. We see that more and more people are living together. Many people buy, if they are allowed by the bank, an apartment with an extra room so they can rent it out to finance their first home.
Others buy with friends to get into the market.
Meier has one piece of advice for all young people who want to enter the housing market:
– Everyone wants to live centrally in the big cities. It is not a given that you can and can afford it. Rather, look outside the city centre, where there is good infrastructure, for example. It is important for young people, and you can also buy up over time when you have got a little further into life with income and savings.
2024-02-09 21:03:31
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