I have some fresh information about the Swedish real estate market for all you fellow Swedes out there. According to “Boverket” there will be a lack of more than 700 000 homes in 2025. The main type of homes missing are the cheaper options. To us, great news!
Even though the market is around pretty hot, these changes makes for two major possibilities. One for developers and one for cash flow junkies like myself.
Developers will have a steady flow of career people that will want to move from something simple to their own houses, etc. This will create a steady demand for hew houses in good locations. Perfect for all developers who have this dialled. I might actually take part of these opportunities as well, but we’ll talk about that another time. A pretty interesting project by the way, I’ll let you know as soon as I’m sure we can pull it off, or not.
Then the other opportunity for all of us who are addicted to that cash flow. My experience is that the bigger houses in a more central area sell for a much cheaper price/sq.m. then the smaller ones do. The thing is even too the big houses sell relatively cheaper, they can definitely bring a better cash flow. The ideal way of maximizing the cash flow would be to divide big houses into one to three apartments thus creating more housing, which Sweden needs and making more money in the process. According to my investigations this can generate cash flows between 10 and 13 percent, which is very good for a centrally located place. It will also most likely increase the value a lot since its value will be based on the properties Cashflow when put on the market.
So there you have it. Go get the money! :)