Wish to live in downtown ? In principle, and in practice, buying a property in Helsinki is simple. However, there are some bureaucratic procedures one must obey and follow. Reserve some time and patience.
Conditions for buying a property in Helsinki
When it comes to buying a property in Helsinki, a new rule came into effect from the beginning of 2020. If you are not a national of the EU or ETA country and wish to buy a piece of land, you need to get a permit. Exempt are those with dual citizenship. But, if there is going to be joint ownership and another one is a foreign national, there has to be a permit. That is given by the Ministry of Defence. When buying a housing share - a flat - for example in Helsinki, you do not need one.
If your intention is to stay in the country for more than a year, you should register at Maistraatti (Register Office). On doing that, you will receive an identity / social security number and become entitled to benefits. That helps in case you would like to get a mortgage since the banks need to confirm your identity somehow. It can also be confirmed by other official documents, passport being the most obvious one. Also, credit history will be examined.
Choosing a property in Helsinki
Unlike in some other countries where often an army of lawyers is involved, getting yourself a home in Finland is pretty straightforward. Just contact real estate agents or housing contractors. Often, individuals sell their flat or a house without any middlemen. Adverts with pictures and asked prices are easy to find on the internet and weekend papers have a special section for homes on sale.
Book a time or go to the location when it's open to see. And start bidding, at first, for example, ten per cent less what the asking price is. Remember to check the overall condition of the house and find out if there are big renovation project in sight.
There are a number of things to bear in mind if you are buying an old apartment from a housing company. Firstly, you should take a look at the house manager's certificate and some details such as the age of the building, the square area of the apartment, its share of housing company debt and current repair needs and planned and completed renovations. Furthermore, it would do no harm to glance through the energy certificate and financial statements and plans. Pay special attention to possible plumbing renovations.
Procedures
In case you decide to start bidding for the apartment, do it in writing. Do not start the process if you are not sure that you really want the apartment and are able to pay for it. That is because cancelling a bid may result in having to forfeit a down payment or pay a contractual penalty, limited to four per cent of the total sales price. The bidding process is usually quick, just a few days. The seller is not obliged to sell even if he has accepted a bid - even if it meets the asking price. However, the seller must, in that case, pay back the contractual penalty specified in the bid.
If your bid is accepted, there is obviously more paperwork to do. A real estate agent will prepare the documents if you have hired one. And so do banks and law firms. In case you wish to save costs, the templates are available on the internet. There is long list of things to be included: the seller's and buyer's personal information, the name and address of the housing company, the numbers and amount of shares and the number of the apartment, information on the apartment (building, entrance, apartment number, number of rooms and area), the price and terms of payment, the date of handing over the documents, the dates of transferring ownership and possession and the date from which the maintenance fee will be payable.
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When you reach a deal with the seller, you might have to pay down payment, usually around three per cent of the total price. Because of all this, it is advisable to visit banks before, compare their interest rates and negotiate a mortgage in advance.
Housing tax in Helsinki
There is a risk that you might have to pay a property transfer tax. That is two per cent of the debt-free price of a housing estate and four per cent of the debt-free price of real estate. But, you are freed from paying the tax if you are between 18 and 39 years old, have not owned a home in Finland or another country before, own at least half of the place and plan to use it as your own permanent home.
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