26-year-old Adele Gjelsten is standing inside a brand new flat in Ålesund. In a short time, the residential complex will be completed, and 76 excited buyers will move in. But Adele Gjelsten will not be one of them. She works as an electrician in the new building – and it will probably be the closest she will get to her dream of a new flat here. – This flat will go for around 4.5 million, and I have no chance of that, she says as she pulls cables to the fuse box. Adele Gjelsten works as an electrician and wants to build for herself. Now she is saving up money and looking for a place to hide. Photo: Mia Sofie Ytreberg / news Moved home to her father Recently she moved back to the girls’ room with her father in Fiksdal in Vestnes. In recent years, she has rented, but when the landlord had to renovate, she had to move out. The solution was to move back home while she looks for a new place to live. The hope is that she will be able to save up extra money. Gjelsten is single, and with one income she cannot afford to buy a place to live. – It’s a bit tricky, but it gets more expensive and more expensive and more difficult and more difficult, she sighs. Adele Gjelsten now lives at home with her father while she saves and looks for a new apartment to rent. Photo: private 26 per cent risk trouble The 26-year-old electrician is not alone in experiencing that it is expensive – both to own and to rent. In Norway, there are almost a million people who pay to live in a house or apartment that someone else owns. A new report shows that 26 percent of those who rent now risk not being able to pay for themselves. – There is a fairly large proportion who are at risk of getting into real financial trouble. If you don’t pay rent, you will be evicted. It is a difficult threat to have hanging over you, says SIFO researcher Christian Poppe. The report was prepared by the Consumer Research Institute SIFO on behalf of Husbanken and also shows that 8 per cent of those with home loans are at risk of defaulting on their loans. SIFO researcher Christian Poppe says there are many who are at risk of serious financial problems now. Photo: Eivind Rohne / OsloMet Several families with children struggle financially The report also points to completely new groups that are badly affected by the many jumps in interest rates, and who are at risk of no longer being able to pay loans or rent: couples with children – increase from 4.5 to 14 percent households with incomes between NOK 800,000 and 1 million – increase from 2 to 13 percent Among those who struggle, these groups have increased sharply in the last two years. According to SIFO researchers, these are often young people with large home loans, in the establishment phase and early in their working life. – There is a group that can have payment problems, and they shouldn’t, because the income is high, he says. – But can’t they adjust consumption down? – Yes, but there are some expenses that are quite fixed, for example mortgages or rent, joint expenses. There are a number of expenses that you cannot do anything about in the short term, says the researcher. Interest calculator The calculator uses the formula for annuity loans to calculate your monthly costs. Nominal interest is used here. This means that there will be an additional transaction fee which will vary from bank to bank. Today’s interest rate is taken from DNB’s mortgage interest rate for young people, and different banks will have different interest rates. The figures given here will therefore be approximate for you. Monthly expenses are interest and repayments combined. Read more about sources and reservations here. See how much you have to pay if the interest rate increases. The dream of owning something Adele Gjelsten checks her mobile almost daily to see if she can find a place to rent. As a rule, it is too expensive, too little or too bad. Gjelsten would like to have a kitchen that is big enough to cook and enough space for his hobbies. Adele Gjelsten checks available apartments almost daily. As a rule, they are too expensive or too small. Photo: Mia Sofie Ytreberg / news The hope is to manage to save enough so that she can eventually buy a place to live. The 26-year-old has set herself the goal of moving into her own flat before she turns 30. – The dream is to own one myself, where I have some size of the apartment. To have something of your own, which feels like home, she says.
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Adele has moved in with her father – fears it may take years before she can buy her own
