Interest in buying a new investment apartment has continued to decline since last spring. The increase in interest and treatment costs reduces profitability.
Housing investors have become even more cautious because the interest rate on loans and maintenance fees have risen.
In September, the Association of Finnish Landlords asked the opinions of more than 2,000 private landlords in different parts of Finland for its barometer.
In the next six months, more than 22 percent of the respondents are considering buying a new investment apartment, while in the spring the corresponding number was over 25 percent.
The rise in treatment costs and loan interest rates has increased risks and is eating away at the profitability of investing.
According to the barometer, the share of those planning or considering selling their investment property has decreased since spring. Frozen studio shops and declining prices do not encourage sales.
The outlook has worsened in Häme
For example, in Lahti and Hämeenlinna, the outlook has worsened compared to before. According to the website vurkoovi.com, a new tenant can be found for an investment apartment that has become vacant in these cities now, on average, in about two weeks.
– In Lahti, after the corona pandemic, there have been a lot of apartments available on the rental market. Rents dropped momentarily. In August, there has been a turnaround, which means that a tenant can be found in the apartment much faster than a year ago in the summer. Demographic development in Hämeenlinna worries investors to some extent, Rokkanen, the economist of the Landlords, estimates.
August is usually busy in the rental market due to, among other things, the arrival of students.
In Tampere, the outlook is positive and investors believe in the city’s development.
Vuokranantajat ry’s economist Sakari Rokkanen predicts that during the rest of the year the pace of rent increases may accelerate. The reason is, among other things, the increase in the price of energy and the strengthening of the demand for rental apartments.
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