Scandinavians Splurge on Second Homes Abroad!

The Scandinavian dilemma: Buy a small one-room apartment in crowded, wintry Stoc
kholm/ Oslo OR spend half the amount on a roomy house in sunny Florida?
Norrkoping, scandinavia, November 26, 2010 -- The Scandinavian dilemma: Buy a sm
all one-room apartment in crowded, wintry Stockholm/ Oslo OR spend half the amou
nt on a roomy house in sunny Florida?
While real estate prices in both southern Europe and the U.S. have bottomed out
following the various financial crises, real estate prices in Norway and Sweden
have hit an all-time high. With no financial crisis in Scandinavia, both the Nor
wegian and Swedish “crown” are strong compared to the U.S . dollar and the Euro. Hig
h prices on the home front have Norwegians and Swedes looking elsewhere for seco
nd homes to invest in.
What is happening with the Swedish economy? The average Swedish disposable incom
e is higher than ever before largely due to an unusually low interest rate coupl
ed with three major income tax cuts. Sweden ‘s stable economy survived the brunt o
f the financial crisis. With voter confidence high, the center/right wing partie
s were re-elected in the September Parliament election by a wide margin.
Real estate prices have continued to rise this year as in previous years. On ave
rage, real estate prices in Sweden have increased by approximately 250 % since 1
996. Now the price curve seems to be flattening out as a result of rumors that T
he Central Bank is raising interest rates, and there are even discussions on lim
iting the percentage that Swedes can borrow from the bank.
Why does Norway have greater spending power now? Neighbouring Norway is in a sim
ilar situation where prices have continued to climb over the past few years. In
addition, Norway’s oil and gas resources in the North Sea have added substantially
to the country’s wealth. Some of that money seems to have trickled down to the po
ckets of its 4 million inhabitants.
Last year, both the Swedish and the Norwegian crown became much stronger compare
d with the Euro and the dollar, so suddenly Scandinavians can afford to buy a ho
use in Florida for half the cost of a small one room apartment in central Stockh
olm or Oslo.
So… A strong currency, the price drop in real estate in southern Europe and in the
US, and confidence in Sweden and Norway’s economic development have induced Scand
inavians to buy real estate in warmer countries. Especially strong interest is n
oted among the older population. For the first time ever, Scandinavia has a gene
ration of retirees who speak English, who have travelled extensively, who feel y
oung at heart, and who invest in new experiences rather than purely material thi
ngs. Leaving their children all their money is not highest on their list of prio
rities. The Scandinavian media has followed this trend with great interest.
The real estate portal www.houseinthesun.com, launched two months ago, has repor
ted a large number of Swedes flocking to the site. Last month, houseinthesun.com
reached a global Alexa ranking of 79,000 out of which half the visitors came fr
om Sweden and Norway, thus giving the site a rank in the top thousand in Sweden.
“Of course this is good news but hardly surprising. At this time of the year, it’s
dark when you go to work, and it’s dark again when you go home. Buying a house in
the sun is something everybody wants especially now; even if you can’t afford it r
ight now, looking at the 50,000 properties makes you dream and gives you a sense
of freedom,” says Reidar Svedahl, CEO of the company.
Contact:
Bjorn Ingbrandt
HouseintheSun.com
Norrkoping, scandinavia
Sweden
+46-11-18 70 50
bjorn.ingbrandt@houseinthesun.com
http://www.houseinthesun.com