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RENTING

PROPERTY: Sharp rise in rental prices in Bergen 

The cost of renting in Norway’s biggest cities rose during the first quarter of the year, with the sharpest increases in Bergen, figures released on Thursday revealed. 

Bergen, Norway.
The cost of renting in Bergen in Norway rose by 15 percent in the first quarter of 2022. Pictured is a drone view of Bergen. Photo by Rune Haugseng on Unsplash

Rent prices rose by 1.6 percent in Norway’s four largest cities in the first three months of 2022, Real Estate Norway’s (Eindom Norge) latest figures revealed

The most substantial price growth was in Bergen, where rent rose by more than 15 percent in the first quarter. 

“Eiendom Norge’s rent statistics show an increase in rental housing prices in Norway as a whole in the first quarter of 2022. In Bergen, there was a strong increase of 15.1% in the first quarter of the year,” Hennig Lauridsen, CEO of Real Estate Norway, said of the figures. 

The cost of renting in Trondheim rose by 5.1 percent, and rental prices in Oslo increased by 0.1 percent. 

Stavanger saw a fall in rental prices during the first quarter, with it becoming almost 2 percent cheaper to let a property. 

READ ALSO: Where can you buy a house in Norway for less than 3 million kroner?

Bergen, and another city on the west coast, Stavanger, saw the highest rental price growth over the past year, with 13.4 and 7.8 percent increases, respectively. The cost of a let in Trondheim has increased by 2.5 percent over the past year, compared to 2.3 percent growth in Oslo. 

Real Estate Norway said that there had been a significant drop in the number of rental homes available on Finn.no during the first quarter of the year. 

Lauridsen said one explanation could be people selling their second homes and rental properties falling an increase in the wealth tax at the beginning of the year. 

“We believe the low supply can partly be explained by the increased wealth taxation of secondary homes in 2022, as we have received feedback on many wanting to sell their rental homes as a result,” he said. 

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PROPERTY

Key mistakes to avoid when bidding on a house in Norway 

Norway's house bidding process is equally stressful and confusing, but before putting in an offer, you should make sure you aren't making any of these costly mistakes. 

Key mistakes to avoid when bidding on a house in Norway 

Buying a house is normally stressful enough, whether it’s getting a mortgage in place, going to dozens of viewings or spending hours going through listings. 

In Norway, the process is further complicated by the house bidding process, which you will have to go through when buying most properties today.

Additionally, you could make several mistakes that could make the process harder or cost you dearly. 

READ ALSO: 

Not having financing in place

Before you can bid on a property, you need to visit the bank to ensure financing for your purchase. If you are taking out a mortgage on the house, you will need to make sure you know the set limit the bank will allow to borrow. 

When you make a bid, the estate agent will contact the bank to ensure that you have the financial arrangements. If you do not have enough money or the mortgage your bank agreed on doesn’t cover the cost, your bid will be rebuffed. 

Therefore it is crucial to know your financial limits when entering bidding rounds to avoid any disappointments. 

Making a bid on a house you aren’t sure about

You should be absolutely sure that you could see yourself living in a property when you bid on it. This is because bids in Norway are legally binding, meaning that even if you put in a speculative bid and it’s accepted, you won’t be able to back out.

This means that you should avoid putting in any offers on homes you aren’t 100 percent sure about.

So while you may be in a rush to get on the property ladder or take a step up, patience will prevail over diving in headfirst. 

Forgetting to do proper research

The devil is always in the detail, and as dull as it may be, you should always read the small print to avoid any nasty shocks. 

This is especially important when buying apartments in Oslo and other cities where you will likely encounter housing associations where residents will be expected to pay various fees or contribute to the upkeep of the block. 

“For instance, if they are planning to replace the roof of the block the next year, you will read about it in the sales documents. It is important to consider whether you can afford a property also after potential add-ons,” Trine Dahl-Pettersen, real estate agent at Eindom 1, explained to The Local

Reading the small print isn’t the only place where research pays off. For example, one reader who has bought a house in Norway pointed out that finding a place that needs a little bit of work can help you avoid intense bidding wars, and locals tend to want a ready-made home to move into. 

“Finding a property that won’t go sky high over the asking price when bidding can be challenging. However, I quickly noticed that Norwegians are not afraid to bid high for a ready-to-go home,” Scott told The Local of his experiences buying in Bergen. 

“If you are comfortable doing some work on it, you can find a much better deal, maybe even under the asking price,” he added.

Therefore, market research can help prevent you from paying over the odds. 

Making more than one bid at a time

Unfortunately, putting plenty of bids out and seeing which offers stick could be a lot more disastrous than you may think. 

As mentioned earlier, bids in Norway are legally binding. Meaning that if you have two bids accepted at the same time, you will be legally obligated to purchase both of them.

Not having BankID

Despite the bidding process being done over the phone, there are still some hoops to jump through. 

You’ll need to have a Norwegian Bank ID available for the bidding process, as it is needed to confirm your identity when sending your bids. 

Without this, you won’t be able to lodge any offers. 

In addition to bank ID, you will need a Norwegian identification number (D-number/Personnummer) to hand. 

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