The high interest rate has hit many of Sweden’s condominium associations. Many also fear that the cost shock is still ahead of them. Therefore, renovations and maintenance can be something that you prefer to put off as long as possible.
But there are several reasons to think differently, notes Emma Lundin, who is market area manager for redevelopment at Riksbyggen. In addition to the fact that a renovation can actually be seen as an investment, associations in today’s situation can also get clearly better prices for many types of renovations compared to a few years ago.
– The construction industry in Sweden is at half speed and the companies need to put their staff to work. When we at Riksbyggen help associations with their renovations, we receive a lot of good offers right now – good contracting companies and really good quotes, she says.
Buyers’ market for construction services
For many years, Riksbyggen has helped housing associations all over the country with major renovations and maintenance by taking overall responsibility for the process. From investigating the need and procuring a contractor, to managing the legal affairs and even providing the guarantee.
– It is simply a buyer’s market today. So even if it is acceptable to make large investments in the property, you should be aware that it may be much more expensive in a year or two when the construction industry picks up speed again.
The condition of the association’s finances obviously affects the possibilities of carrying out renovations. But even if an extended loan is required for the project, the investment can be worth it, she points out:
– The need for loans is of course a factor that must be weighed here. It is also a balance we at Riksbyggen make together with the associations we help. But if we compare the interest costs against the lower price picture, it still speaks volumes for taking the opportunity to make the investment now.
There are also more reasons not to wait with the renovation. The first is that delayed maintenance can lead to costly damage to the property – and thus higher costs over time.
Energy savings can cover the cost of loans
– It is risky to build up a maintenance debt in this economic situation. If, for example, you get water damage in the property, it will lead to a much higher total cost and also cause greater problems for all residents.
Another concrete reason for carrying out certain major renovations is that they can actually lower the association’s variable costs. A newly renovated property can have lower insurance costs, lower costs for service and maintenance and perhaps above all lower costs for electricity and heating.
– We always review the possibility of energy-saving measures with a renovation. It can be about, for example, solar cell installation, renovation and control of heating systems or better insulation, and we have had cases where the energy gain actually made it possible for the customer to carry out other renovations without raising fees. In many cases, the investment can be paid off in a few years’ time, and then only be an annual saving.
A contact, a contract – and a price
Riksbyggen handles financial and technical management for thousands of condominium associations in Sweden. In addition, they thus help boards and associations with both large and small renovations. They do it in the form of a fixed price offer that includes everything.
– It really is an overall solution. Regardless of whether it’s a matter of temporary toilets needing to be set up on the farm, or a matter about a change of tribe ending up in the tenancy board, we handle it, says Emma Lundin.
The fixed price even includes costs that can otherwise be difficult to predict, such as so-called ÄTA costs, which arise because the contractor’s costs have become higher than the original estimate.
So how does it actually happen when a board hires Riksbyggen for a rebuild or renovation? It is a process in four stages: investigation, planning, execution and follow-up.
– We examine your wishes and conditions, receive tenders and procure. It is also Riksbyggen that signs contracts with the contractors and we provide a five-year guarantee on the work.
The last point is especially important in the economic situation we are in. Many associations have had the chance that a small entrepreneur went bankrupt. But, says Emma Lundin, Riksbyggen will definitely not go bankrupt.
– This is simply a safe solution that saves the association a lot of time and resources, and also guarantees a good end result. I also dare to say that it can also save the association money, because we at Riksbyggen are very used to procurers of this type of service.
EXTERNAL LINK: This is how Riksbyggen can help you Brf. Request a free quote
Facts: About Riksbyggen
Riksbyggen is a nationwide and cooperative company that is one of Sweden’s largest housing developers and property managers. The company idea is to create attractive and sustainable housing for everyone. Overall, Riksbyggen manages over 100,000 rental apartments and 200,000 condominiums in over 4,400 condominium associations. In addition, it has a large number of commercial and public property owners as customers. Read more about Riksbyggen’s property management at Riksbyggen.se.
EXTERNAL LINK: Here is Riksbyggen’s property administration – find your location.
HERE IS RIKSBYGGEN’S PROPERTY MANAGEMENT
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