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Finnish Real Estate Markets (Market (Stratified demand (Demand can…
Finnish Real Estate Markets
Physical
Immobility
A LOT OF SPACE!
A Logistics terminal to HKI center? Yeah, maybe not ; D But to cheaper location 20 km from Helsinki or other logistically good, but still more space holding location.
Heterogenuity
Helsinki area is where most of the real estate demands are going to increase to. Apartmennts, hotels, hosptals, schools, parks, all kind of real estate. Whole nnew suburban areas! 1/5 of the predicted growth iss gonna be in HKI.
Indestructibility
Clean waters, fresh air. Natural environments. So not only bare soil, but also this kind of great value!
Cold weather. Heating and insulation more important that in almost all other countries
Institutional
Real Property Law
2 Ways of owning property in Finland
Own the land and buildings on it
Own the buildings, and have right to land trough long lease agreement. Usually municipality owns then the land
Anything that is municipally owned and not planned, can be withdrawn for another use ( but with proper time warning and usually good or market related price)
Many people want to own the land too!
In Helsinki area only restricted amount of land can be sold for private owners
Land is expensive in popular areas!
Owning our own house is supoorted in Finland
Many own their own houses. Living in rent is however becoming moe popular, especially in Helsinki area.
Public Regulation
Legislation of renting and transactions is quite a liberal and simple
Renting is quite a flexible for tenants
Common form of contract is "until further notice", and tenants get some moths to seek new house if owner decides to do something else with the house
Finland is Plan Lead Economy in sake of real estate markets
Taxes. Collected quite a efficiently in Finland.
Real Estate Investment acn be profitable or less profitable. Person's skill to take care of financial stuff makes big difference, in Finland too. Tax planning, wise contracts, buying good real estate and choosing right locations in important for good profit and savings.
Associations and organisations
RIL
Clubs supporting Real Estate and people in some specific area
A lot of them in Finland, since a many people buy their own house in here!
Local and regional custom
Market
Localized competition
Quite dense population in Helsinki area, elsewhere a lot of space per person!
Byers look from narrow area.
AREA is important. Anything inside the house can be customized.
No Stockmarket places like with shares.
Stratified demand
Many people live in suburbs at Helsinki area
Location is one of the most fundamental factors affecting customer's choices, this is charasteristic to real estate markets.
Demand can different quite a dramatically, but trends can come also back.
KALLIO! Expensive these days!
Prizes are high and go up at Helsinki area and few other cities or areas.
some places you pay from location, in some house or property itself is cheap, but travelling takes longer, services are further away and maintenance and updating is relatively very expensve
Cheap buying prize isn't the same thing as good investment.
Intresting in investing or making it your home?
Confidential transactions
Real estate SHARES are sold secretly. Information about them usually costs.
Professionals doing this business
"raw" price isn't all . Does it include all costs? Is it with or without debt? Any other things affecting whether it's good deal or not?
Supply fixed in long run
Reacting to demand changes is slow, many years. Can't be done as fast as with shars can be tradd etc.
Prediction skills and strategies
Relatively uninformed participants
Demand for cheap but good advisory and consultancy. Real Estate Agents are a large group of professionals. If you deal more eith real estate you should do yourself this business or get to know a good and reliable professional.
Real Estate Unit prizes are HIGH!
Diversifying your way out of systematic risk is almost impossible
Economical
Situs
High and increasing prices in Helsinki-center and other popular areas
Low and even lowering in worst cases prices in some rural areas and not popular cities like Jämsä or Kouvola.
Scarcity
Can't produce new land, but zoning/planning can be widely used. A lot of land in many areas in Finland
Modifiability
Clever, but slow planning with land!
Area between Töölönlahti and HKI Railway Station was magnicifiently filled since old magazines in the property were chopped down
Anyhow, process was slow! Took a lot of time, like many public projects in Finland these days
Could Helsinki-area get this good projects but at least twice faster in future?
Interdependence
Durability of investment
Houses are good collateral for loans
Private households get chances by buying own house
Every House is different. Every Area, Nieghtbourhood and place as a living area is different. Coca Cola cans can be made anywhere. Markets are LOCAL in Real Estate Business
Another product can't substitute your house that easily
Finland is these days quite a advanced and secure country, with good owner's security and stable society.
Good ownershis protection!
About 65 % of houses are owned by the resident in Finlan. That's a big number
Ownership of rental apartments in Finland is spread to different actors. Households 1/3 professional investors and some kind of subsidies