Buy a better site with a friend and get a discount on the market price.
What would you say if you could buy your house with a 20,30 or even 50% discount from the market price? Would it be worth it?
Some time ago a good friend came to me because he was a little bit desperate. He said that he had gone to Finn.no to find a house for buying and he noticed he could not afford the house he wanted.
– Everything is so expensive! It is not that I want a house with a swimming pool and 9 bedrooms! – he said.
The bank could give him and his wife a loan up to 3.6 millions NOK which is a lot of money but with this amount he had to forget about his dream of having a small garden, or even a terrace. Forget about a garage, 3 ok-size-bedrooms, comfortable kitchen… He had to do many compromises. When he left I went on with whatever I was doing, but somehow I kept on thinking about what my friend told me and I started a small investigation on my own…
In Norway there is a small wealthy elite, most people with an average income, and some people with low incomes. My friend, me, and maybe you, is among those with average incomes, most of the population in Norway are.
The distribution of Wealth in Norway by OECD.org
This means that when we are taking bids for a house in Finn.no, most likely we are competing with someone in the same situation as us.
What does that mean? Very simple, the price increases. Therefore, the properties between 2 and 5 millions are fully overpriced and one of the determining factors is that many fish compete for the same bait.
In the red zone it is where the 80% of Norwegians compete and therefore the price goes up!
What happens above the 4,5 millions? The amount of people that can afford a mortgage that high reduces drastically. In conclusion the price is less likely to increase much during the bidding period. On that exact moment I took the phone and rang my friend.
-Hey man, I have something very interesting to show you. Could you come by?
I presented the data above to him and he started to salivate because he had just seen in Finn a registered tommansbolig on a site of 800 square meters for 6.5 million NOK. If he could find somebody to partner up with he could have an apartment in Stokka of 120 sqm, with 4 bedroms, 2 bathrooms, a big garden, a terrace, garage…his dream house! And he would pay 3.25! Just do the maths.
-Is it very difficult to make a seksjonering of a Tommansbolig?- he asked
-No. I´ll be happy helping you with that.
We started calling friends who could be interested in buying a house together, and at his second call he found one. From then on, everything went quite fast, since the house was on the market for a long time. They sent a bid for 6.2, and they got the house for 6.3. Both payed 3.150.000 NOK for a section of a Tomannsbolig in a very good area in Stavanger. This is impossible to get today if you go on your own.
He moved in last summer and when I went to visit him for a dinner with our families he told me:
-Do you know what Andres? I am considering building up a swimming pool!!!!
Everything is possible.
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