What you need to know about buying a new build in Norway
For many buying a new build in Norway may be the most straightforward option for getting on the property ladder. Here's what you need to know before putting offers in.
As we've explained in many articles, Norway's property market can be challenging to navigate.
Between dealing with securing a mortgage, bidding rounds and working out housing association costs, there's a lot to consider.
Buying a new build may appear to be the most non-fuss option. Generally, if it is built to the standard advertised, you don't need to worry about unforeseen repairs and maintenance or being outbid on your dream home.
However, scratch beneath the surface, and you soon discover that there are quite a few things that you need to know before jumping into a new build.
No bidding rounds
Generally, one of the most attractive things about a new build is that they typically go for a set price. This means that you don't have to worry about the dreaded bidding round.
For the uninitiated, most second homes in Norway have a market price, and then interested parties make legally binding offers on the home at a set time.
These bidding rounds can significantly drive up the price of a home and muscle many out of what they thought would be their dream home.
Expect to pay a premium anyway
While you won't need to bid for the home, the surging cost of building materials in recent years and the shortage of new build homes entering the market means that you will likely have to pay quite a bit of money to get yourself into a new build.
Additionally, the most popular new builds being in the biggest cities also add a premium to the price tag.
So while it may be more straightforward to get a new build than go through bidding rounds, you are unlikely to be saving heaps of cash.
A shortage of new build properties and a slowdown in development has meant that supply hasn't kept up with demand in Norway.
Rising costs also mean that several developers have chosen to postpone projects, meaning it can be quite a while before there are enough new builds around the country for everyone.
This means that newbuilds get snapped up fairly quickly, meaning you may need to act quicker than comfortable with in order to secure a home.
You may end up buying into a buying housing association
If you buy a new build part of a larger block in the cities or big towns in Norway, you will likely buy into a housing association.
A lot of associations build most of the new builds found in the country. So when you buy a home in a housing association, you aren't actually buying a house but a share in the association.
This share gives you the exclusive right to live in the home you have put in an offer on.
A housing association also means getting to grip with the finances involved and what you'll be expected to contribute in monthly costs, upkeep and towards the shared debt of the association.
As associations can be a complicated beast in their own right, it's worth checking out some of our articles on them.
Due to the demand, you may need to purchase a home before the development is even finished. The issue is that these waiting times can range from months to years.
If you fork out on a home that won't be ready for another year, you may have to dish out for rent while you wait for the new home to be ready. For many, this can feel like wasted money.
This also means that ready to move into homes without a waiting time in an area you find desirable will be like gold dust.