✅ Get My Free Guide to Buying a Home in Finland in 10 Steps: aleksihimself.com/homeguide

In NYC this is called a Co-op (Cooperative) and is the most common form of real estate in the city. In fact, it was Finnish immigrants who first brought the concept to NYC. There are 2 Finntowns, one in Brooklyn and one in Harlem.

@AleksiHimself

2 жыл бұрын

Good stuff! 😃🙌

@cocobutterchin6768

Жыл бұрын

Or Maybe HOA. My Condo Here In USA 🇺🇸 I Paid $260 A Month For Common Area. It Covers My Water, Garbage, Cleaning Everywhere Around The Condominiums.

@tomwright9904

Жыл бұрын

Happens in the UK too. Its called leasehold. You also have commercial leasehold and "shared freehold"

@Bertvandijken

11 ай бұрын

In Holland we have a similar system. You have the right to live in the apartment. If you are a burden for the other people who live there. Then the board can expell you from your appartment. The other things mentioned in the video are basically the same

This video is really good explanation for english speaking people! I had been working as taloyhtiön puheenjohtaja for about 15 years, and we have some english speaking shareholders in our company. I wish there had been possibility to show this to them before.

@AleksiHimself

2 жыл бұрын

Glad it was helpful! You can show it next time you run into English shareholders. :)

@tauseefkiani-

Жыл бұрын

@Sami and Aleksi. What would happen if some shareholder/apartment holder wants to sell their apartment after 5 years for a profit, (sale price greater than original price on which they purchased it) who takes that profit?

@AleksiHimself

Жыл бұрын

@@tauseefkiani- If you have lived in the apartment yourself for at least two years, you as the owner get to keep all the profits tax free. Otherwise, you need to pay capital gains tax 30% or 34% of the profits.

@tauseefkiani-

Жыл бұрын

@@AleksiHimself thanks brother your videos are a great source of guidance for foreigners. Much appreciated

@AleksiHimself

Жыл бұрын

@@tauseefkiani- thanks brother!

This is really important to know and I'm lucky that I was already here when you uploaded. My husband and I are looking for homes and we didn't know any of this. Love your content, keep it up!

@AleksiHimself

2 жыл бұрын

Glad it was helpful! I will make another video about the process itself soon.

This is a big help! Good to know and thanl you for sharing. I'm happy to watch your blog. Always inspiring❤️

@AleksiHimself

2 жыл бұрын

Glad it was helpful!

This is actually a great Finnish Innovation. It solves the many problems of ownership associated with apartments.

@AleksiHimself

2 жыл бұрын

I think so too!

Excellent video Aleksi. Thank you for explaining very clearly and in detail the system involved to buy an apartment in Finland 🇫🇮 Thank you 😊

@AleksiHimself

2 жыл бұрын

Glad you enjoyed it!

Very informative! The explanations is so clear, thank you!

@AleksiHimself

2 жыл бұрын

Glad you think so!

Moi Aleksi, long time no speak! Glad to hear you've made it on the property ladder. There are similar apartments available here, I think they might be called "Share transfers" but they don't offer nearly as much in the way of rights as the Finnish system does.

@AleksiHimself

2 жыл бұрын

Interesting! What country is that?

@Sh0ckmaster

2 жыл бұрын

@@AleksiHimself They have them here in Jersey. Similar principle to what you described here: You don't buy an actual house/apartment, but you buy shares to the value of what the property is worth in the holding company. Used by many here as a way to make a quick buck.

Oh man! Thank you for translating every word to English! It is very helpful!

@AleksiHimself

2 жыл бұрын

You're welcome 😊

Really Informative helpful video like always and can you make videos if someone wanna build their home in Finland how things work from buying land and hiring construction company for build Thanks keep it up Aleksi

@AleksiHimself

2 жыл бұрын

Some people do that but unfortunately I don't have first-hand experience on that. I can consider it.

I just wanted to add in Canada this is rather interesting method you have in Finland because a long-term necessary renovation usually happens around every 25-years for our building that require a large sum down payments which ultimately need your owner to have loans and funding as you mentioned, otherwise you pay out of pocket and that could lead to extending to pay your mortgage rates rather than of course you said, utilizing the capital gain on your home as loan alongside combining saved funds to finance that total cost of maintenance. That is why it's interesting to just do it early & thank you for sharing that's how Finland has it in some places (fyi the alternative is you have to pull out to pay something like 100,000 USD for just re-building roof repair etc. like my sister did. They ended up adding it back on to their mortgage anyways so ends up more expensive than having the money ready.)

That is a very good and informative video: thank you very much!

@AleksiHimself

2 жыл бұрын

Finntastic! 😃🙌

Great video. I think you could have also mentioned the rental plot/"Tontin vuokravastike" because that's easily forgotten while searching for the apartment and also the 10 year warranty rule which might be a good thing. I cant thank you enough for the ceiling electrical socket picture. We moved recently and there is one ceiling socket looks exactly like what you showed. I will contact the housing management company now.

@AleksiHimself

2 жыл бұрын

Good point. I will make another video explaining the process more and will mention this there.

@maryrhudy9250

2 жыл бұрын

And how to contact a realtor from one's current home country.

This sounds a lot like the Condominium (or condo) system we have here in the states. Pretty neat. Love your videos. Keep it up.

@AleksiHimself

2 жыл бұрын

Cool, thanks. The governance has a few differences but mostly it's similar.

This is a great video Aleksi, congrats! Very informative. I was wondering if you are planning to make a video with an example on how much do you pay for the apartment in details like: what was the down payment, did you use ASP for the apartment, how much do you pay in total monthly now, when did you start looking for an apartment (did you have all the down payment ready and then you started looking for an apartment or you had 70%, 80%), how does the process goes, do you make an offer and then get the loan or vice versa? I know that these are a lot of questions and I know that you are not an expert on the topic but I am saving in an ASP account at the moment and having a rough idea of the process would be very beneficial.

@AleksiHimself

2 жыл бұрын

Hi David! I'm planning to do video about this soon. Stay tuned & stay Finntastic!

LOL..I have been watching your videos on and off once in a while but this video is what made me subscribed few minutes ago. Good content!

@AleksiHimself

2 жыл бұрын

Awesome! Thank you!

Excellent information! We're looking into owning a place instead of renting and I have been very confused by all these terms 😂

@AleksiHimself

2 жыл бұрын

Good stuff! 😃🙌

Thanks for explaining! Really good explanation.

@AleksiHimself

2 жыл бұрын

Thanks!

Onnea! This is best video I've ever watched to introduce Finnish apartment system. I wish I could watch it when I chose my current apartment

@AleksiHimself

2 жыл бұрын

Glad you liked it!

Thanks for sharing this Aleksi

@AleksiHimself

2 жыл бұрын

Thanks for listening!

Similar to here in Australia. We call it Strata Fees for the Body Corporate. The fees are paid every 1/4 and they look after the upkeep of the property, insurance and the company to manage all the things for the maintaining of the building... The owner still pays land rates 'Rates' to the local council per 1/4 and then the Water to the water company. Strata depends on the size of the unit in the block and is more expensive if you have things like lifts, pools or gyms and thats usually to cover the extra insurance for having them. Rates are usually based off the plot size of the land the units are on and thats governed by the local council for your suburb you are in. So if it's in an inner city suburb it will be more expensive than in an outer city one.

Congratulations again on your new home but DAMN Aleksi 0:08 ! It works kinda similar in South Africa if you buy an apartment or a house in an estate.

@AleksiHimself

2 жыл бұрын

Thanks E V!

This was a very interesting video Aleksi. Thank you to share the knowledge. Maybe you could also explain how the vero prosentin is calculated.

@AleksiHimself

2 жыл бұрын

I can do a separate video on that. :)

@carraracom

2 жыл бұрын

@@AleksiHimself at least, this time, I didn't ask for more prank videos 😂

It's not only Finland, it's same in the Sweden as well. You actually "own the rights to live" but you "Don't own the Place". Even though you pay 275000 USD (just an example) for an apartment you still pay somewhere between 400-450 USD every month which is "Fixed Cost" and there will be another 50 USD for "Maintenance". If you have a mortgage then you have to pay Monthly EMI to the Bank, Fixed Cost and Maintenance to the Real Estate company.

@AleksiHimself

2 жыл бұрын

Thanks for the comment keshavarao r v!

@leenprael3583

2 жыл бұрын

Same in the Netherlands. You buy the right on an appartement but the owner, also responsible for maintenance and such, is the “vereniging van eigenaren” association of owners. Which is sometimes run by a company but can also be run by the owners themselves

@tonyvice6661616

Жыл бұрын

I mean, since the association works as a company, theoretically (and this actually happens in some BRFs) instead of paying costs every month you can end up getting paid part of the profits. Also the fixed cost widely depends on whether the loan for the BRF to get the property building has been paid out or not

Very helpful to know. Thank you!

@AleksiHimself

2 жыл бұрын

Glad it was helpful!

Very detailed explanation. Thank you.

@AleksiHimself

2 жыл бұрын

Glad it was helpful!

We have a very similar system here in Sweden…Crazy! Great videos my man Cheers!

@AleksiHimself

2 жыл бұрын

Thanks for watching!

Thanks for sharing your knowledge .Some of us ,has little or no idea how it works.

@AleksiHimself

2 жыл бұрын

Glad to help!

Super helpful video, thank you!

@AleksiHimself

2 жыл бұрын

Glad it was helpful!

Kiitos tästä videosta !

@AleksiHimself

2 жыл бұрын

Ole hyvä!

Great video, I am planning to buy apartment in Espoo area, this video will really help me in understanding rules.

@AleksiHimself

2 жыл бұрын

Glad it was helpful! I will do another video of the buying process later.

Great guidance through the Finnish living system! For next time could you also include negatives not only cons? Do you need to pay additionally for water, electricity on top of the (maintenance costs + capital expenditure charge?) Thank you very much! Keep up the great content

@AleksiHimself

2 жыл бұрын

What is the difference between a con and a negative? Yes, you need to pay water, electricity separately.

Very informative and comprehensive video. I do seem to recall from the course you recomended in the past of the (ex) real estate agent (Finnish guy in America) that these housing companies have law-written rules, like they *must have year plans* or maybe even 5-year plans. Those plans are essential information when you plan to buy an apartment. Also, sometimes the residents have trouble making a decision, when for example the choice between a more expensive renovation or a more quick and dirty one. And finally, in rural areas the banks might no longer wish to invest in these buildings due to lack of prospect for the future, in which case the investment could be lost. Of course this is unlikely in the wider Helsinki-area. Thank you for the video! P.S. I just noticed my comment from a year ago, when I was a bit less informed. Sorry about that.

@AleksiHimself

Жыл бұрын

Yep, all those points are true.

Same in Switzerland. Great system. The building are clean and well maintained. Best thing ever. The building never fall into disrepair.

@AleksiHimself

2 жыл бұрын

Very cool!

Taxes and houses are two of the most confusing subjects in Finland. This was very explanatory! 👏🏻 Congrats with the new place! 🥳

@AleksiHimself

2 жыл бұрын

Thank you! 😃

Congratulations for your new house 🥳🥳🥳

@AleksiHimself

2 жыл бұрын

Thank you!!

Very useful! I will try to go the detached house route, eventually...

@AleksiHimself

2 жыл бұрын

Good luck! That's not a bad choice either.

Thank you for this eye-opening video! 👏

@AleksiHimself

2 жыл бұрын

Finntastic! 😃🙌

Also similar to a Home Owners Association except you would own the internal part of the building usually in that case and the HOA takes care of all external and common areas and you pay a monthly fee to the HOA for this maintenance.

@AleksiHimself

2 жыл бұрын

This is true! I didn't cover it here to avoid confusing too much.

@scottgrohs5940

2 жыл бұрын

Sounds to me like in the Finnish system you actually buy your way into the HOA and it’s entirely comprised of residents at said building. This probably makes arbitrary evictions a bit more difficult as you’d have to get majority vote to evict your neighbor, so that person would probably really deserve it if it happened. A callous external owner couldn’t just run the building as a cash cow.

There are places like this in chicago as well. I think in the US they are called housing coops but they can vary from a system very similar to yours to something vastly different. But there are many buildings in chicago that functions exactly like this.

@AleksiHimself

2 жыл бұрын

Thanks for sharing this! 😃🙌

Great video. Small quibble, semidetached is paritalo. Detached is erillistalo/omakotitalo.

We are looking forward for the apartment tour video 👍.

@AleksiHimself

2 жыл бұрын

Good stuff!

Ohh tutor 😁 you nailed it. Amazing video 👍

@AleksiHimself

2 жыл бұрын

Thanks Gazi! Good to hear from you. I hope you're doing well.

Great video!

@AleksiHimself

2 жыл бұрын

Glad you enjoyed it

How do renovations for your own unit work in this scenario? If you do not technically own the walls or floors, are you able to change the floors and/or kitchen cabinetry?

Very good information, Thankyou

@AleksiHimself

2 жыл бұрын

Glad it was helpful!

This is so far the best video you made. Don't get me wrong. All of your contents are great. But I believe this housing is one of the most confusing things in Finland. Really appreciate your efforts.

@AleksiHimself

2 жыл бұрын

Thanks a lot!

@tinaluoma-welcome9607

2 жыл бұрын

I totally agree!

Man, Finland is so advanced that Finns just skipped housing altogether and bought stocks instead. Next up: replacing your food with Bitcoin 😂

@AleksiHimself

2 жыл бұрын

😂🙌

@jcpana060959

2 жыл бұрын

😂

@MM-kz9pd

2 жыл бұрын

Yes, like Schwabbs said “You Will Own Nothing And You Will Be Happy”. Finland is obviously running ahead of the train

We were looking at buying a studio apartment in Finland and realised how this works just before we were ready to call the first place to make an offer. I think this is a positive system. But we'll hold on to our pennies for now and save a bit more first.

@AleksiHimself

2 жыл бұрын

If you have the money and know what you're buying, then go for it.

Very informative :)

@AleksiHimself

2 жыл бұрын

Good stuff! 😃🙌

Same stuff in italy but you own the appartment and there is no company holding the building but we hire a person who is in charge of aministrate the building for all the appartment owners, the fee is like 20€/m and if there is a renovation to be done the money are collected, the rest is more or less the same procedure

@AleksiHimself

2 жыл бұрын

Thanks for sharing this! 😃🙌

I got many questions about the uniqueness of the system. Here is the quick answer. Q: Isn't this like a Condominium system? This is not that unique. A: The Condo and the Limited Liability Company system share many similarities, but there are a few underlying differences. First of all, the condo owner owns the apartment directly, whereas, in the Finnish system, the owners own shares of a company that owns the building. The most significant difference seems to be the building-specific loans and repairs of the jointly-owned parts of the building. In the Finnish system, a single owner (the company) can guarantee to get the loans needed (using the real estate as collateral). There is a member committee with multiple owners responsible for the common areas in the condo system. In addition, Finland seems to be the only country where this system is the dominant one. I was a bit clickbaity with this one. There is a great eBook about comparing the systems in English by Martti Lujanen. Check it out here: issuu.com/kiinteistoliitto/docs/here_and_there

@Drini666

2 жыл бұрын

Sounds a lot like Swedish "Bostadsrätt", as the name suggests you buy the right to live there. Don't think we have any other type of apartments except rental.

@MoniTan-sh7yz

8 ай бұрын

The loan that use as collateral will then pass on to the shareholder to pay? Example : If i buy a unit today says €10,000 , then after adding any the repair cost in furure, my puchase cost is actually €10,000+future repair costs.

We have a very similar system in the states. Especially with condominiums. My niece and her husband own an apartment in NYC and its almost exactly like that.

@AleksiHimself

2 жыл бұрын

I ran into the Condominium system while researching this topic. They share a lot of similarities. It seems people buy the physical apartment and not shares, right?

@finnishyourplate

2 жыл бұрын

@@AleksiHimself With condos, yes you are correct. I own a condo, I own everything inside the walls outright, and a percentage of the common areas including the land. But most buildings in New York City are Housing Co-Ops instead, where you own shares of the Co-Op, allowing you occupancy of a unit. Fun fact, the first two Housing Co-Ops in New York City were named Alku, and Alku Toinen, respectively. They were founded in 1916 by Finnish immigrants.

@tinaluoma-welcome9607

2 жыл бұрын

In USA some single standing homes are run the same way. I’ve owned a home in South Carolina as a vacation property and I’ll never but another property with an HOA again!( Home owners association) These organizations can breed a lot of entitled, nosy and nasty people!! So glad my first home no one can tell me how to keep it! Your system sounds like it may be a bit better

@nogglebeak

2 жыл бұрын

@@AleksiHimself Correct. You own the condo directly. You pay an upkeep fee to the association. There are quite a few large differences.

@nogglebeak

2 жыл бұрын

@@tinaluoma-welcome9607 HoA's are the devil. Really nice to own something you can't do anything with without asking someone else for permission.

What you describe is similar to what we have in Canada. It's called a "cooperative".

great video!

@AleksiHimself

2 жыл бұрын

Thanks!

Thank you for this introduction into the Finnish real estate shared ownership. In Germany there's a similar system called Wohnungseigentum where all owners (of special rights regarding their apartments) together are the owners of the ground, organised in un unclear legal form that is not a legal person but shares similarities with registered associations, cooperatives, and companies. Really weird idea...

@AleksiHimself

2 жыл бұрын

Kiitti kommentista jayfraxtea! Thanks for the comment jayfraxtea!

I bought a newly constructed apartment when I came to Finland 5 years ago. I had the opportunity to pay only part of the purchase price up front. The rest of the price was rolled into a housing company loan. I couldn't have afforded to pay the entire purchase price, but this way I avoided having to to to a bank to get a mortgage at all. For three years I didn't have to pay any principal on the housing company loan so the expenses were very low. After that I had to start paying the loan every month, but the total cost is about the same as rents in this area. I really like the apartment and doubt I would have found a rental I like this much. Is this a common way to buy apartments in Finland?

@AleksiHimself

Жыл бұрын

Yes and no. New buildings are mostly (around 60%) financed with a housing company loan (taloyhtiölaina), so the sales price is only around 40%. The first few years are "repayment holiday" so the shareholders do not have to pay the housing company loan repayments (interests only). Now, it seems your repayment holiday is over, and now you need to start paying your share of the housing company loan. I would check ASAP the conditions of the housing company loan whether there is an interest cap or not because your share of the loan is most likely quite big and will increase your costs. About your original question, I believe some people do like you did. It really depends on the terms of the housing company loan because you cannot negotiate them. If you take a personal loan, the terms are negotiable.

In the USA these are known as co-op apartments

@AleksiHimself

2 жыл бұрын

Good stuff! Are they also sold in shares like in Finland?

@williamprather1811

2 жыл бұрын

@@AleksiHimself Exactly! I own Co-op shares. Because the apartments are different sizes, owners have different numbers of shares depending upon the size. I own 24 shares, so that determines my monthly fees. Some one with a smaller apartment holds fewer shares and pays less per month.

Moi Aleksi ! Could you make a video about the rental system in Finland , telling all the rights and duties that the tenant must take care . Kiitos Argentiinasta

@AleksiHimself

2 жыл бұрын

I can consider it in the future!

Kiitos Aleksi! I learned a lot since I’m planning to buy my own apartment soon! Is it the same thing when you buy a rivitalo? And which do you think is better, kerrostalo or omakotitalo? Thank you in advance!

@AleksiHimself

2 жыл бұрын

Moi! Yes it is. Rivitalo apartments are housing shares/companies. With omakotitalo, you have to take care of everything yourself, ranging from waste management to renovations. The transfer tax is 4% With kerrostalo, the housing company takes care of everything but you pay the monthly maintenace fee. Kerrostalos are often in more convenient locations, such as shopping centers. The transfer tax is only 2%.

@niezelcarolino7945

2 жыл бұрын

@@AleksiHimself kiitos tiedosta! 🤩🤩

How do renovations for your own unit work in this scenario? If you do not technically own the walls or floors, are you able to change the floors gand/or kitchen cabinetry?

@AleksiHimself

11 ай бұрын

Yes you are but you need to notify the board in advance. This is to avoid crucial renovations going unnoticed. We did the floors when we moved in, and we notified the materials and that we would do it ourselves. Once we got the green light, we did the renovation.

This sounds a lot like how condos work in the US. For instance, that building collapse in Florida happened because the condo owners didn't want to pay for the increase in monthly payments. Conversely, I had a wonderful boss who had to give up her condo when storm damage increased her fees too much. It wouldn't have been as expensive if it were just her own house, and she would have been able to have different options in terms timing and solutions. Does anyone know how the two systems compare?

@AleksiHimself

2 жыл бұрын

I mentioned a few differences in the commens + there is a great resource in the description comparing the systems.

Hey bro i am new in Finland so im kinda confused that do u have to pay like a downpayment for ASO like 15% ?

Good video on a subject that isn't taught enough imo. Do you know if semi detached and row houses use this system aswell, or are they just real-estate?

@AleksiHimself

2 жыл бұрын

Semi-detached houses are real-estate. Everything else is pretty much housing shares.

@riittap9121

2 жыл бұрын

@@AleksiHimself A semi-detached house can also be in form of an asunto-osakeyhtiö, detached houses as well. Detached houses that belong to an asoy are called erillistalo.

Excellent detail - I can't help but wonder about the company becoming insolvent in the event of severe economic conditions. Are there any risk mitigation or insurances to hedge against this possible out come?

@AleksiHimself

11 ай бұрын

Bankruptcies of housing companies are very rare but can happen. That means multiple shareholders (owners) simultaneously can not pay their payments. The best way is to avoid the risk is to check the housing company documents.

If you rent, do you have to pay this maintenance fee (and the loan if there is one) on top of the rent or it's already included in the rent fee that's on websites with flats for rents? (sorry if the question is stupid)

@AleksiHimself

2 жыл бұрын

Good question! The answer is no. The maintenance payments are the responsibility of the shareholder, not the renter. So the shareholder pays the payments and collects rent from the tenant.

@wynterblackwell3640

2 жыл бұрын

@@AleksiHimself Thanks

Hi , do we need to pay transfer tax for land when it’s purchased before 40 years age? Note that - land is bought by housing company . To avoid monthly rental on land, I am doing complete payment for land as well. Hence wanted to know if I need to still pay transfer TAX for land when housing company buys land from other company?

@AleksiHimself

2 жыл бұрын

I assume you're talking about an apartment that is on rented land with the option to redeem it. As far as I understand, if you decide to redeem the land, the housing company will buy the piece of land from the landowner and the housing company pays the transfer tax. In other words, you are not a party involved (seller/buyer) in the transaction. That being said, the answer is no but the transfer tax is may be included in the redemption price. I suggest asking the realtor or checking the company documents.

More videos like this please ! I want to know the stock market situation in Finland and how to invest and trade.

@AleksiHimself

2 жыл бұрын

Check out this video: kzread.info/dash/bejne/jKWnqLeepae-YtI.html

what about garden space? Does each resident where you and your gracious lady live have garden space for growing their own flowers and produce? Or do the cities have space folks can rent for the growing season?

@AleksiHimself

2 жыл бұрын

If you buy a terraced house or semi-detached house with your own yard. Alternatively, you can get a spot at a community garden (siirtolapuutarha).

@markonikula2611

2 жыл бұрын

@@AleksiHimself tuossa varmaan tarkoitettiin kaupungin vuokraamaa viljelypalstaa. Siirtolapuutarhan mökki+tontti ostetaan ja hinta voi olla yli 100000€.

If we are foreign students in Finland, can we use a bank loan to buy a house or apartment in Finland?

I have maybe an important question, You said that hosing company use building as collateral for big loans for renovations and we pay it. But, can we get bank loan and use apartment as a collateral (as I read, ~70% of apartment price)?

@ollirasanen4412

2 жыл бұрын

Yes

@AleksiHimself

2 жыл бұрын

Yes you can. If you buy an investment apartment or a new home, you can use collateral value from your first home (assuming you've paid off enough mortgage).

kiitos mielenkiintoisesta videosta Aleksi. Olen asunut Helsingissä kolme vuotta enkä ollut tietoinen näistä tiedoista. Voitko kertoa kuinka paljon asuntolainaa maksat keskimäärin omasi asunnostasi? Mietin, maksaisiko asuntolainan + hoito hinta yhtä paljon kuin minun vuokrani.

@AleksiHimself

2 жыл бұрын

Maksetaan yhteensä n. 1000€ lainan lyhennyksiä + n. 300€ vastikemaksuja. Kyseessä 3h asunto.

@marcellopacifici

2 жыл бұрын

@@AleksiHimself kiitos!

Sir, i really like your content! @Aleksi Himself: I have some questions as i want to buy a lakesideproperty in Finland to come and visit a few times a year and do outdoor stuff and maybe rent out. Will people hate me because i am german? What are the hidden cost and duties that come with a property in finland? The price is soo cheap it looks like fraud. Kainuu region. Best Regards, I would really appreciate a small answer from you :)

Thank you so much for these videos! So we are thinking to buy a little house by the lake as a holiday home. I understand that there is an anual land tax fee but is are there anymore payments that we need to know about please? 🙈❤

@AleksiHimself

Жыл бұрын

Transfer tax 4% unless you qualify as first time buyers. You also have to pay waste management and heating costs.

@GGrandi

Жыл бұрын

Property tax for both land and house. Amount depends on area and building year. Electric, heating, water, household waste, insurance, possibly yearly local road maintenance fees if the house is not by the communal road; for example need snow plowing during winter.

Vastike= basic building/owned property mantainance something like this. Like an insurance contract with the government

@AleksiHimself

2 жыл бұрын

It's the payment for the company to make sure everything in the building runs smoothly.

Only in Finland? This actually sounds just like the systems I am used to from Germany and possibly also the UK, although I do not know as much about the latter.

@AleksiHimself

2 жыл бұрын

The Condo and the Limited Liability Company system share many similarities, but there are a few underlying differences. First of all, the condo owner owns the apartment directly, whereas, in the Finnish system, the owners own shares of a company that owns the building. The most significant difference seems to be the building-specific loans and repairs of the jointly-owned parts of the building. In the Finnish system, a single owner (the company) can guarantee to get the loans needed (using the real estate as collateral). There is a member committee with multiple owners responsible for the common areas in the condo system. In addition, Finland seems to be the only country where this system is the dominant one. I was a bit clickbaity with this one. There is a great eBook about comparing the systems in English by Martti Lujanen. Check it out here: issuu.com/kiinteistoliitto/docs/here_and_there

Great content as usual. I have doubts regarding the detached house. If i buy a detached house, i will be buying the entire plot, too. So, should i have to pay taxes for the house and the plot? What are the other things i have to pay other than water and electricity?. TIA ja hauskaa vappua!

@AleksiHimself

Жыл бұрын

If you buy a detached house, you'll pay estate tax for the house and the plot. Other costs are such as, waste management, heating and renovations.

Does the hoitovastike include the use of electricity, water and internet? It seems very expensive to me so i would hope so.

@AleksiHimself

2 жыл бұрын

The internet often is. Water & electricity are not.

@freezedeve3119

2 жыл бұрын

usually electricity for apartment is not included and you pay for water / usage, so it is fair for all as you do not have to pay for other people usage. Usually it contains heating which can be quite much on winter.

Hi Aleksi, How much initial money you had to put in your house saving account to get the house? My budget is similar to yours, usually I have heard of 10% of the house value as budget (so, 30000€). Would that be a fair estimate?

@AleksiHimself

2 жыл бұрын

In our case, we took two loans (one for me and one for my GF). I put 5% cash and my GF put 10% (she used ASP, I didn't). We used the Government Guarantees to back up the collateral shortfalls.

@V08

2 жыл бұрын

Interesting, so that would be 15% as the money required. Out of which 5% goes into house payment and 10% can be kept in ASP. Thank you Aleksi. The channel is very insightful:)

@AleksiHimself

2 жыл бұрын

@@V08 I could have put 10% too but I decided to invest that money elsewhere. It really depends on your situation. :)

What if I wanna buy a land and hire a small private housing company for the construction. Is that an advantage???!! Or doesn't make any differences ?? Cause still I can't escape from maintenance ?!

@AleksiHimself

2 жыл бұрын

If you build a house on your own property, then you will own real estate and not housing shares. You don't need to pay any maintenance payments because your responsible for everything yourself. Plus you need to pay the annual real estate tax.

If a person does not pay the monthly maintenance charge (I think for 3 years, but don't quote me), by law the housing company has the power to sell the shares. It is unlikely that a housing company would go bankrupt. The costs would be met initially by slightly higher charges on other residents. They would get the money back (collectively) in the increased value of the company when the shares are sold.

@riittap9121

2 жыл бұрын

They can't sell the shares, but they can kick the owner out and rent the apartment and use the rent to pay the bills. If it takes three years before this happens, the board has been sloppy. They should react much faster, since this procedure takes time.

@hauskalainen

2 жыл бұрын

@@riittap9121 you are right... I bought an apartment in a public auction that had been taken into the housing company's control and I as the new owner had to pay off the debt before the shares were put into my name. But it seems now that the former owner had to agree to the shares being auctioned to pay off the debt. I presume this helped with his credit history.

@AleksiHimself

2 жыл бұрын

Yep. They can take control but not sell as far as I know.

@hauskalainen

2 жыл бұрын

@@AleksiHimself I discussed with my lady who informed me that the owner voluntarily agreed with the ulosottovirasto (debt recovery agency I think) to consent to the auction going ahead. So you are right.. The power to sell rested with debt recovery and not the housing company. I guess there were several routes that could be taken but this one suited the debtor.

Just earned a sub since you deserve it

@AleksiHimself

Жыл бұрын

Thanks!

Asut missä vaan aina kaiken maksaa asukas, taloyhtiössä vastike , ok talossa suoraan tekijälle. Ok talossa voit tehdä tosin itse jos taitoa on. Tosin OK talon myyminen on sitten toinen juttu, rivari tai kerrostalo asunto on yleensä riskitön myydä, koska OK talossa on myyjällä aina se 5 vuoden virhe vastuu. Itse asun OK talossa, esim putkiremppa maksoi minulle 1100e, koska tein itse. Yhtiössä asuminen helppoa, ehkä kallista OK talossa tosiaan hoidat kaiken itse, mutta voi olla kohtuulliset kulut jos lämmitys ja muu talo tekniikka on nykyaikaista.

@AleksiHimself

2 жыл бұрын

Kiitos Jani kommentista! Noinhan se menee. Jos ite taitaa hommat niin OKT voi olla ihan edullinenkin asua.

Is that true that a non-citizen can't buy Omakoti talo nor paritalo? Meaning the only options available would be rivitalo and kerrostalo.

@AleksiHimself

2 жыл бұрын

If you're talking about the non-EU buyer thing, you need to ask a permission from the Ministry of Defense. If you get the permit, then you can buy. www.defmin.fi/en/licences_and_services/authorisation_to_non-eu_and_non-eea_buyers_to_buy_real_estate#aa7989fe

First 8 seconds got me interested already 😂

@AleksiHimself

2 жыл бұрын

Good stuff! 😃🙌

So, what’s the benefit of buying shares of an apartment, vs. just renting?

@AleksiHimself

2 жыл бұрын

Owning housing shares increases your wealth and you don't need pay rents which are much higher than the maintenance payments. For instance, in our place the maintenance payments are around 300€/month and rent would be around 1300€/month.

@mikrokupu

2 жыл бұрын

In Finland there's also a third way, called right-of-occupancy housing, which comes between owning and renting. You pay 15% of the dwelling's price and during tenancy you pay a monthly residence charge. The owner of the building cannot terminate the contract and if you move out you get the 15% back.

Apartment "ownership" works the same way in Sweden (called Bostadsrätt).

@AleksiHimself

2 жыл бұрын

Good stuff! 😃🙌

Good morning ! Can I get more explaination about why you can't buy your apartment ? I watched and listened to your video very carefully without seeing the explanation of not being able to own your apartment. what happened, please ? Thank you so much. Have a nice day

@AleksiHimself

Жыл бұрын

Explain in this part: kzread.info/dash/bejne/dY2kkpabXdq5c9I.html

Wow, impressing😮😮😮

@AleksiHimself

Жыл бұрын

Good stuff! 😃🙌

Aleksi, what's the financial motivation for limited housing associations emplouees, if they're not-for-profit? Regulartiy of paychecks? Their rate? Something else?

@Censeo

2 жыл бұрын

I would assume it is because everyone who works would get paid some small compensation. Like the board of directors might get 50 euro per meeting so like 200 euro income a year. The reason they are on the board is most often because they are also a shareholder. So they usually have one or two apartments themselves and they want to manage their investment closely, when voted in. The non profit part is actually irrelevant. It is profit and loss for shareholders depending on the housing market compared to market at your time of puschase.

@galgrunfeld9954

2 жыл бұрын

@@Censeo this point makes sense to me, thanks for sharing that :)

@AleksiHimself

2 жыл бұрын

It's like Ronnie said. It's about people's homes/investments after all and some want to make sure things are done properly. The position does not take that much time (I'd say some hours per month). It's not really employment.

@galgrunfeld9954

2 жыл бұрын

@@AleksiHimself got it, I misunderstood it, then. It's like a residents board, only with a an actual legal organization with regulations on it - so awesome! Yet another thing to love about Finland's great social constructs. ❤️

@AleksiHimself

2 жыл бұрын

@@galgrunfeld9954 exactly!

So it's like 'leasehold' in the UK, kind of? You own the property, but not the land on which it is built?

@AleksiHimself

2 жыл бұрын

You don't own the property nor the land. The company owns. You own shares of the company. Sometimes the company doesn't own the land but leases it from the city.

@cynicalcenobia

2 жыл бұрын

@@AleksiHimself Ah, I see - makes sense now; seems like the Finnish housing market is a whole other beast of its own. Kiitos/Köszi for an insightful video!🇫🇮🇭🇺

Hi, I am a foreigner living in Finland. Can you tell how the housing law works here in this case if the one partner (husband/wife) who is the 100% owner of the house died unfortunately, will the complete house ownership automatically be transferred to second partner (wife/husband) ?

@AleksiHimself

Ай бұрын

If you have children and there is no will, the children will inherit everything. If you are married and have no children, then you probably will inherit everything. You want to read this article: amoslaki.fi/en/who-will-inherit-according-to-the-laws-of-finland/

It is what it is thats kinda sucks for buyers but if you know how to rent your houses its profit. for people who want to buy and live in home should buy town house :)

@AleksiHimself

2 жыл бұрын

It has its pros & cons but I think it'a decent system.

That's just an HOA. it exist in one way or another in all the countries I've lived in.

So is it like that if i buy shared appartment then I need to pay ful price and every month price

@AleksiHimself

2 жыл бұрын

I didn't understand the question.

@AbhiGupta

2 жыл бұрын

@@AleksiHimself for example first you paid full price to start live in this appartment then you pay endless amount like rent for it because you still own it. This is what I understand. Am I right

@AleksiHimself

2 жыл бұрын

@@AbhiGupta Thanks for the clarification. That is correct. As long as your own the place (shares), you need to pay the maintenance payments. You don't need to pay full price necessarily if you use a mortgage.

Thank you, really helpful!! Can you also make a video about the “right of living”? In real estate ads is very common to find this kind of solutions but not easy to figure out 100% what it is

@AleksiHimself

2 жыл бұрын

Great suggestion!

I dont understand why should you pay so much and still own nothing ? Does that mean that if you rent an apartment and just pay the monthly rent you would waste much more money than 'buying' it ?

@AleksiHimself

2 жыл бұрын

You won't own "nothing". You own shares that allow you to control the apartment. If you rent, you pay monthly to your landlord's/landlady's pocket. If you own, you pay off the mortgage + the payments to the housing company. For comparison, we pay around 300€ maintenance fees. If we rented this apartment, we would pay around 1300€ in rent.

I heard you can even invest a portion of your social security in apartments?

@AleksiHimself

2 жыл бұрын

I haven't heard of this. Can you elaborate more?

@freezedeve3119

2 жыл бұрын

in theory that can be possible but practically it can happen only on some shot term problems example if you get unemployed social security can give/loan some money for shot time to pay your apartment payments until you get new job. You sure can use your social security payment how ever you like but buying apartment can be bit too much, if you managed to buy apartment then it might be possible.

@riittap9121

2 жыл бұрын

@@AleksiHimself Ei onnistu tän selittäminen englanniksi, mutta tämä on mahdollista, jos on pienet tulot ja kuitenkin sen verran omia säästöjä, että pystyy ostamaan esim. uudiskohteen, jossa on sopivasti yhtiölainaa. Asumistuessa rahoitusvastike kuuluu hyväksyttäviin asumismenoihin, vaikka rahoitusvastikkeesta maksetaan myös yhtiölainan lyhennyksiä. Jos tulot on pienet, niin hoito- ja rahoitusvastikkeeseen saa asumistukea, jolloin (pieni) osa asumistuesta menee yhtiölainan lyhentämiseen.

Actually this system works mostly ok. Except when the hallitus becomes corrupt and just does renovations for laundering some money out for some friends. Happened to one of my friends. Pipe renovation done a year after kuntotarkastus said everything is ok...