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Swedish property a safe bet for investors
Looking to invest in bargain property without risking your cash in an unstable economy? In that case, perhaps you should consider Swedish property, writes Hanna Lindon.
Of Europe's top ten wealthiest nations, few offer the opportunity to purchase investment property at bargain prices. The Swedish market, however, is an exception – it is possible to pick up a rural cottage in the country for a meagre £27,500, while a family villa could set you back only £69,000.
No wonder then that savvy commercial investors are snapping up Swedish property like there's no tomorrow. International blue chip firms such as Faberge, Acta and GE Real Estate have all put their cash in the country, while individual buyers are beginning to follow suite.
"The Swedish property market is outperforming all the other Nordic countries," says Abul Chowdhury, Business Manager at Scandinavian Property. "Since the Swedish market crash in the 90s it has been picking up steadily, and is now stable. It's definitely a good time to buy."
For those keen to invest in Swedish property without having the hassle of house maintenance and letting arrangements, Scandinavian Property offer a 'no strings attached' deal. It is currently seeking investors for a new project in conjunction with Smorghagen Invest AB. The project involves purchasing a plot of land in the municipality of Hanburgsund which will accommodate 48 houses. The minimum investment is set at SEK300,000 (approximately £22,000) and guarantees an annual return of 20 per cent.
According to Chowdhury, the guaranteed high returns are made possible by two factors: "Firstly, interest rates for Swedish mortgages are incredibly low, and secondly the Swedish property market is very stable, he says. "There is also a strong Swedigh property rental culture which allows buyers a good return on their investment through rental income."
So where in Sweden should investors be looking to put their cash? According to Kate Godfrey, head of research at Property Frontiers, the Swedish south coast is a good bet. "Malmo, just across the Oresund from Copenhagen, is a hot tip," she says. "The city has benefited from the opening of the bridge as workers have chosen to live in Malmo and commute to Copenhagen, where house prices are dearer."
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