Before the new year, Eiendom Norge predicted a collapse in the cottage market. The reason was high interest rates, inflation and increased electricity prices. For those who still want a holiday home, but see that their wallet is not enough, a joint could be the solution. That was it for the extended Sommerbakk family. – We are glad that we did it. We would never have been able to afford each of us to buy our own cabin, says the son in the family, Kim Nicholas Sommerbakk. It was son Kim Nicholas Sommerbakk who first came up with the idea of the joint cottage project. A year and a half and many working hours later – they have no regrets. Photo: Privat They have spent a year and a half renovating the 150 m² building from 1893. Now it is ready. – Everyone in the family has always dreamed of having a cabin. We have been talking about it for years, but no one has really been able to afford it, he says. Could you share a home with someone? Yes Ask who with No Show result – We are a family There are a total of 11 people who belong to the cabin. Mother and father, as well as two of their children with their families. According to Sommerbakk, all parties have contributed the same amount and have their names written in the deed. – We have not written any agreement beyond that, he says. – We are family after all. We get along so well. Sommerbakk believes they do not need any other agreement in terms of ownership, but has no doubt that it would have been wise to have something on the back burner. According to Kim Nicholas Sommerbakk, they have put a lot of time and effort into renovating the cabin. Photo: Privat The most risky are changes in life situation Senior economist at Handelsbanken Sara Midtgaard believes that it can be a good idea to splice. She says the cottage market often has a close correlation with the housing market. – When house prices rose quite a lot during the pandemic, so did cabin prices. When house prices have now cooled down, so have cabin prices. Nevertheless, it is still very expensive. Senior economist at Handelsbanken Sara Midtgaard says house prices rose during the pandemic due to doubled timber prices, greater focus on leisure and holiday homes and low interest rates. Photo: Handelsbanken According to figures from Statistics Norway, cabin sales have fallen sharply across the country in the past year. Among other things, because there was a cabin bonanza during the pandemic and several have now been bought, says Midtgaard. One’s life situation determines whether splicing on a holiday home is a good idea, the economist believes. – The riskiest thing about buying with someone else is if the life situation of one of the parties changes and you have to sell early. It costs a lot to buy and sell a home, so you can risk losing your equity. At least in the market we’ve had in the last six months where prices have fallen so much. – If you are going to splicing on a home or cottage, the most important thing is that you keep the home for a while, emphasizes the economist. Midtgaard believes that it has become more normal to buy together with others. – Property has become very expensive, many people have to fork out to afford it. Natural shared object Henning Lauridsen in Eiendom Norge also sees several positive aspects of buying a holiday home with several people – if done in the right way. He says a holiday home is a natural shared property. – Most people use it on a limited number of days of the year. Photo: Johnny Vaet Nordskog According to Lauridsen, the biggest advantage is that there are more people who share the costs both related to the purchase of the home itself and maintenance afterwards. – Sensible way to get access to a holiday home at a lower entry price, he calls it. – Narrow case If you want to buy with someone else, it is important to put some framework in place around: – Have an agreement on how the ownership is distributed, how much the parties own, how the costs are to be distributed and on how decisions are made, recommend he. – It can also be very sensible to have an agreement on what to do if one wants to sell. If you have this in place and generally trust each other, then it should be a narrow issue to figure out, Lauridsen believes. More are postponing sales Lauridsen believes that far fewer cabins will be sold in the future than during the pandemic and slightly fewer than what we saw before the pandemic. – There is a lot of uncertainty in what the private economy will look like in six months to a year, he says. But even if the turnover is less, he does not think there will be major changes in price. – I think most people would rather postpone selling than sell if the market is worse at that moment. Most people do not need to sell their holiday home at a specific time. In contrast to a home where you may suddenly need more space. – In the housing market, there are always people who need another home, and this results in a steady turnover. You have that dynamic to a lesser extent in the holiday home market, as it is a kind of additional benefit. ALSO READ:
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– Can be risky, says economist – news Nordland
