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.
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
In Czechia this system exists too, it is called a Družstvo (literally Cooperative) and are largely relics of the prior Socialist system. They are cumbersome and have many negatives so new ones do not form and most have been converted to SVJ - Společenství vlastníků jednotek which would translate as a Homeowners association.
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.
@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?
@@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.
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!
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 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.
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.
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.
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.
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.
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
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
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.)
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?
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.
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
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
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.
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.
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?
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.
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 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.
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.
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.
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.
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
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?
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?
You can have renovations done but mostly with permission only. There is a maintenance responsibilities document "Taloyhtiön vastuunjakotaulukko" which gives quite detailed description of what can be done by the tenant without permission from the superintendent / board of directors. As a rule of thumb the tenant can only make minor superficial renovations such as paint, wallpapers etc. without permission. Even changes to the original floor requires permission, mostly due to soundproofing requirements. There have also been problems of chemical emissions from old floor materials, thus it is usually required nowadays to remove everything to bare concrete before installing new floor. Old materials may contain asbestos which needs to be checked before beginning the renovation, this is mandated by law. If asbestos is present special precautions are made to prevent dust from spreading all over the place when removing old materials and the work is done by certified professionals. This is also the case in bathroom renovations, where waterproofing standards dictate the work to be done by a professional. Usually there is a readily available form "modification report / muutostyöilmoitus" which you can fill in and describe what kind of a renovation will be done, by whom and when. You will give the report to the superintendent who then discusses the matter with the board of directors and gives you permission for the work or asks for more information. Once you get permission you are good to go. In major reparations the housing cooperative may also require a supervisor for the work. Once the work is done you inform the superintendent that work is completed. As for kitchen cabinetry, it may be a borderline case. Install completely new cabinets - definitely needs permission. Just new doors - probably doesn't need permission. Making changes to water outlets - needs permission. It never hurts however to contact the superintendent and tell him what you are planning to do.
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.
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) ?
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/
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
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.
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.
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?
@@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.
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
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?
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.
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 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
@@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.
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 tuossa varmaan tarkoitettiin kaupungin vuokraamaa viljelypalstaa. Siirtolapuutarhan mökki+tontti ostetaan ja hinta voi olla yli 100000€.
This system has one "pro" you forgot to mention: if someone is not obeying the common living terms and conditions (like: makes noise during the night, smokes in the corridor or balcony, even levitates bad smell to building, or disturbs other ways other residents), then they are violating the agreement with company, and such persons can also lose access to apartment after warnings. If disturbing neighbor would instead actually own the apartment, getting ride of them would be a lot more complicated because there would be court involved etc.
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 ?
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.
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.
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?
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.
@@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!🇫🇮🇭🇺
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)?
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).
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
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!
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.
@@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.
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
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.
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.
@@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 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.
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? 🙈❤
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.
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...
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.
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.
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.
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 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.
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...
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?
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.
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:)
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!
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%.
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
But now I wonder why do people buy apartment and not Asumisoikeusasunto when it's basically the same thing? You only have right of living in an apartment
Not quite. You own the right to control the apartment when you buy a housing share. In addition, when you pay off your mortgage, you will increase your wealth. The value of the shares can also increase (but also decrease). You can also rent the apartment. These are the main benefits of owning. Asumisoikeusasunto has limited options (there are not that many), and some of them have wealth restrictions. In addition, you get very little increase in wealth. However, you don't have to worry about the price decrease, and it's easier to move out.
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 ?!
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.
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 :)
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.
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
✅ 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.
Good stuff! 😃🙌
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.
Happens in the UK too. Its called leasehold. You also have commercial leasehold and "shared freehold"
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
In Czechia this system exists too, it is called a Družstvo (literally Cooperative) and are largely relics of the prior Socialist system. They are cumbersome and have many negatives so new ones do not form and most have been converted to SVJ - Společenství vlastníků jednotek which would translate as a Homeowners association.
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.
Glad it was helpful! You can show it next time you run into English shareholders. :)
@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?
@@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.
@@AleksiHimself thanks brother your videos are a great source of guidance for foreigners. Much appreciated
@@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!
Glad it was helpful! I will make another video about the process itself soon.
Oh man! Thank you for translating every word to English! It is very helpful!
You're welcome 😊
This is actually a great Finnish Innovation. It solves the many problems of ownership associated with apartments.
I think so too!
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.
Interesting! What country is that?
@@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.
Excellent video Aleksi. Thank you for explaining very clearly and in detail the system involved to buy an apartment in Finland 🇫🇮 Thank you 😊
Glad you enjoyed it!
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.
Good point. I will make another video explaining the process more and will mention this there.
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.
Cool, thanks. The governance has a few differences but mostly it's similar.
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.
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.
Hi David! I'm planning to do video about this soon. Stay tuned & stay Finntastic!
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.
Thanks for the comment keshavarao r v!
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
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
Same in Switzerland. Great system. The building are clean and well maintained. Best thing ever. The building never fall into disrepair.
Very cool!
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
Glad you liked it!
This is a big help! Good to know and thanl you for sharing. I'm happy to watch your blog. Always inspiring❤️
Glad it was helpful!
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.)
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?
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.
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!
Awesome! Thank you!
Very informative! The explanations is so clear, thank you!
Glad you think so!
Kiitos tästä videosta !
Ole hyvä!
That is a very good and informative video: thank you very much!
Finntastic! 😃🙌
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
Some people do that but unfortunately I don't have first-hand experience on that. I can consider it.
Excellent information! We're looking into owning a place instead of renting and I have been very confused by all these terms 😂
Good stuff! 😃🙌
Great video. Small quibble, semidetached is paritalo. Detached is erillistalo/omakotitalo.
We have a very similar system here in Sweden…Crazy!
Great videos my man Cheers!
Thanks for watching!
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
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.
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.
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?
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.
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.
Thanks E V!
Thanks for sharing this Aleksi
Thanks for listening!
Great video!
Glad you enjoyed it
Taxes and houses are two of the most confusing subjects in Finland. This was very explanatory! 👏🏻 Congrats with the new place! 🥳
Thank you! 😃
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.
If you have the money and know what you're buying, then go for it.
Congratulations for your new house 🥳🥳🥳
Thank you!!
That's just an HOA. it exist in one way or another in all the countries I've lived in.
In the USA these are known as co-op apartments
Good stuff! Are they also sold in shares like in Finland?
@@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.
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.
Yep, all those points are true.
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.
This is true! I didn't cover it here to avoid confusing too much.
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.
Thanks for explaining! Really good explanation.
Thanks!
Super helpful video, thank you!
Glad it was helpful!
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
What is the difference between a con and a negative?
Yes, you need to pay water, electricity separately.
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?
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?
You can have renovations done but mostly with permission only. There is a maintenance responsibilities document "Taloyhtiön vastuunjakotaulukko" which gives quite detailed description of what can be done by the tenant without permission from the superintendent / board of directors. As a rule of thumb the tenant can only make minor superficial renovations such as paint, wallpapers etc. without permission. Even changes to the original floor requires permission, mostly due to soundproofing requirements. There have also been problems of chemical emissions from old floor materials, thus it is usually required nowadays to remove everything to bare concrete before installing new floor. Old materials may contain asbestos which needs to be checked before beginning the renovation, this is mandated by law. If asbestos is present special precautions are made to prevent dust from spreading all over the place when removing old materials and the work is done by certified professionals. This is also the case in bathroom renovations, where waterproofing standards dictate the work to be done by a professional.
Usually there is a readily available form "modification report / muutostyöilmoitus" which you can fill in and describe what kind of a renovation will be done, by whom and when. You will give the report to the superintendent who then discusses the matter with the board of directors and gives you permission for the work or asks for more information. Once you get permission you are good to go. In major reparations the housing cooperative may also require a supervisor for the work. Once the work is done you inform the superintendent that work is completed.
As for kitchen cabinetry, it may be a borderline case. Install completely new cabinets - definitely needs permission. Just new doors - probably doesn't need permission. Making changes to water outlets - needs permission. It never hurts however to contact the superintendent and tell him what you are planning to do.
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.
Thanks a lot!
I totally agree!
What you describe is similar to what we have in Canada. It's called a "cooperative".
This was a very interesting video Aleksi. Thank you to share the knowledge.
Maybe you could also explain how the vero prosentin is calculated.
I can do a separate video on that. :)
@@AleksiHimself at least, this time, I didn't ask for more prank videos 😂
Great video, I am planning to buy apartment in Espoo area, this video will really help me in understanding rules.
Glad it was helpful! I will do another video of the buying process later.
Very detailed explanation. Thank you.
Glad it was helpful!
Thanks for sharing your knowledge .Some of us ,has little or no idea how it works.
Glad to help!
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) ?
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/
Very helpful to know. Thank you!
Glad it was helpful!
Thank you for this eye-opening video! 👏
Finntastic! 😃🙌
Ohh tutor 😁 you nailed it. Amazing video 👍
Thanks Gazi! Good to hear from you. I hope you're doing well.
Asutko nykyään Espoossa tai Vantaalla?
Man, Finland is so advanced that Finns just skipped housing altogether and bought stocks instead.
Next up: replacing your food with Bitcoin
😂
😂🙌
😂
Yes, like Schwabbs said “You Will Own Nothing And You Will Be Happy”. Finland is obviously running ahead of the train
What is the best app for searching flats for tent in finland ??
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
Thanks for sharing this! 😃🙌
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.
Thanks for sharing this! 😃🙌
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.
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?
@@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.
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
@@AleksiHimself Correct. You own the condo directly. You pay an upkeep fee to the association. There are quite a few large differences.
@@tinasWindow HoA's are the devil. Really nice to own something you can't do anything with without asking someone else for permission.
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?
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.
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.
Kiitos Jani kommentista! Noinhan se menee. Jos ite taitaa hommat niin OKT voi olla ihan edullinenkin asua.
We are looking forward for the apartment tour video 👍.
Good stuff!
So is it like that if i buy shared appartment then I need to pay ful price and every month price
I didn't understand the question.
@@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
@@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.
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?
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).
@@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?
This system has one "pro" you forgot to mention: if someone is not obeying the common living terms and conditions (like: makes noise during the night, smokes in the corridor or balcony, even levitates bad smell to building, or disturbs other ways other residents), then they are violating the agreement with company, and such persons can also lose access to apartment after warnings. If disturbing neighbor would instead actually own the apartment, getting ride of them would be a lot more complicated because there would be court involved etc.
Good point! Thanks for mentioning.
Hey bro i am new in Finland so im kinda confused that do u have to pay like a downpayment for ASO like 15% ?
Very informative :)
Good stuff! 😃🙌
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 ?
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.
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.
Maksetaan yhteensä n. 1000€ lainan lyhennyksiä + n. 300€ vastikemaksuja. Kyseessä 3h asunto.
@@AleksiHimself kiitos!
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?
I mentioned a few differences in the commens + there is a great resource in the description comparing the systems.
Very useful! I will try to go the detached house route, eventually...
Good luck! That's not a bad choice either.
So it's like 'leasehold' in the UK, kind of? You own the property, but not the land on which it is built?
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.
@@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!🇫🇮🇭🇺
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)?
Yes
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).
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
Explain in this part: th-cam.com/video/CYp04b-wSCo/w-d-xo.html
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!
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.
I heard you can even invest a portion of your social security in apartments?
I haven't heard of this. Can you elaborate more?
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.
@@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.
Is that true that a non-citizen can't buy Omakoti talo nor paritalo?
Meaning the only options available would be rivitalo and kerrostalo.
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
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.
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.
@@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.
Yep. They can take control but not sell as far as I know.
@@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.
Apartment "ownership" works the same way in Sweden (called Bostadsrätt).
Good stuff! 😃🙌
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? 🙈❤
Transfer tax 4% unless you qualify as first time buyers. You also have to pay waste management and heating costs.
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.
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...
Kiitti kommentista jayfraxtea! Thanks for the comment jayfraxtea!
Hi bro, how to get room monthly rent in Finland
Start with vuokraovi.com
great video!
Thanks!
Does the hoitovastike include the use of electricity, water and internet? It seems very expensive to me so i would hope so.
The internet often is. Water & electricity are not.
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.
So, what’s the benefit of buying shares of an apartment, vs. just renting?
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.
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.
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?
Semi-detached houses are real-estate. Everything else is pretty much housing shares.
@@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.
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...
Vastike= basic building/owned property mantainance something like this. Like an insurance contract with the government
It's the payment for the company to make sure everything in the building runs smoothly.
Do you have a video of putkiremontti?
Check this out th-cam.com/video/2DmIWM_8o-E/w-d-xo.html
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?
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.
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:)
@@V08 I could have put 10% too but I decided to invest that money elsewhere. It really depends on your situation. :)
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!
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%.
@@AleksiHimself kiitos tiedosta! 🤩🤩
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
I can consider it in the future!
But now I wonder why do people buy apartment and not Asumisoikeusasunto when it's basically the same thing? You only have right of living in an apartment
Not quite. You own the right to control the apartment when you buy a housing share. In addition, when you pay off your mortgage, you will increase your wealth. The value of the shares can also increase (but also decrease). You can also rent the apartment. These are the main benefits of owning.
Asumisoikeusasunto has limited options (there are not that many), and some of them have wealth restrictions. In addition, you get very little increase in wealth. However, you don't have to worry about the price decrease, and it's easier to move out.
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 ?!
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.
More videos like this please ! I want to know the stock market situation in Finland and how to invest and trade.
Check out this video: th-cam.com/video/ZqsFUeuDX2o/w-d-xo.html
Which is cheaper kerrostalo or rivitalo?
Impossible to say, depends on so many things. Probably kerrostalo.
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 :)
It has its pros & cons but I think it'a decent system.
This is similar to that of Beijing ( you can’t own the land nor the apartment) , yet you buy it .
Interesting!
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.
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