The most popular among Russians looking for a house in Finland are areas located near the border in South Karelia. These are the neighborhoods of Lappeenranta, Imatra, Ruokolahti and the Saimaa Lake region, and skiers especially appreciate the Savonlinna area. For commercial purposes, the priority is, of course, the purchase of real estate in the capital Helsinki.
Three facets of rest
A vacation in Finland can be compared to visiting a sauna. It has three advantages – heat, cold and relaxation. In winter, these are frost–biting flights over snow dunes or splashing rides on reindeer and dog sleds, in summer - meditation on fishing and honing skills on mountain bikes. And the third and most valuable thing is leisurely walks along the fog–shrouded shores of lakes or detached contemplation of the northern lights on a polar night.
There are about 50 year-round resorts in Finland, with a consistently high level of service and well-developed infrastructure. But the most popular of them are those located in the fabulous land of the "midnight sun" – in Lapland.
Just 170 km from the Arctic Circle, the Levi ski resort, four times recognized as the best in the country, is located with its 50 slopes, 5 of which are "black", designed for professionals and the most experienced amateurs. It is here that the stages of the World and European Cup competitions in slalom and alpine skiing are held. No less famous is the resort in the town of Ruka, in the west of Finland, near the city of Kuusamo (Kuusamon). Its special feature is the alpine layout: a network of lifts connects all the slopes.
Vuokatti, one of the resorts located close to the southern part of the Russian border, is famous for Finland's only ski tunnel. It is impossible not to name three other places that are no less beloved by skiers. This is the resort of Paljakka located in protected areas on the border of Central and Northern Finland, this is Saariselka, where the skiing period begins in October, this is Pyha, with its steep and highest slopes of the "Sacred Mountain" in the country.
In a country of equal rights
Unlike many EU countries, where there are quite strict restrictions on the purchase of housing by foreigners, Finland is supportive of them. Since 2000, the country has had a law on real estate, according to which individuals, regardless of nationality, have equal rights to acquire it. The restrictions only affected the conditions for the purchase of real estate in the province of Ahvenanma, located on the Alan Islands.
Another important detail is that in Finland it is possible to obtain a mortgage loan from local banks for the construction of a house. The loan is secured by the house itself under construction. The loan interest rate, considered the lowest in the EU due to the competitiveness of the Finnish market, has averaged only 3.8% since 2003. The decision on granting a loan is decided individually in each case. The associated costs are also low. So, taxes and registration fees paid by the buyer are 4% and 0.05–0.1% of the transaction value, respectively, and the commission of realtors – it is usually paid by the seller – 3-5%.
As in other EU countries, ownership of real estate is not a basis for obtaining a residence permit or citizenship. However, the mechanism for obtaining a visa becomes much simpler: both the owner and his family members are given the opportunity to obtain a multiple-entry visa for a stay of 180 days a year (90 days in each half-year).
Transaction procedure
Real estate acquisition transactions are regulated by the country's Land Code. "When buying, an official act is signed, which has a certain form," says Olga Popova, CEO of Westhome. – It includes a purchase agreement signed by both parties and a notarized document. The agreement must be registered in the local court." Before making a deal, the seller is obliged to provide full information about the object to the buyer in order for him to verify its authenticity.
"In accordance with the law," Olga Popova continues, "the purchase agreement must include at least the following items: a declaration on the transfer of real estate from the seller to the buyer, a specification and an indication of the value of the object. The purchase agreement must be drawn up in three copies, two for both parties and one for the third party, who is usually responsible for fulfilling the terms of the contract. In this capacity, notaries, cadastral engineers, land experts or other persons proposed by the court to participate in the transaction usually act."
Within seven days, the seller must report to the local examination center about the sale. There, the transaction is entered into the state register. A signed copy of the agreement is also kept in the archive by representatives of the authorities.
Growth trends
The boom in the Scandinavian real estate market, which began in the mid-1990s, also swept Finland, but prices here did not grow as rapidly as, for example, in Norway and Sweden, not to mention Estonia, which recently joined the EU. During the period 1996-2006, prices in the capital increased by 135%, and in the whole country – by 107%. As of the end of 2006, the average cost of apartments in Helsinki with an area of 120 sq.m. The cost was 3333 euros per 1 sq. m
. It is very important to note that, while in neighboring countries there is an unambiguous slowdown in real estate price growth, or even stagnation of the market, as in Denmark, in Finland, experts note an increase in their growth rates. For example, last year the price increase for residential real estate in Helsinki was 11.24%, whereas in 2005 it was 10.7%, and a year earlier it was 8.9%. The same trend is typical for the market in other regions of the country.
The reasons for the steady rise in prices for Finnish real estate lie not only in the unsaturation of the market, but also in economic stability. According to the results of the rating compiled annually by the World Economic Forum, Finland has been ranked alternately two first places among European countries in the Economic Competitiveness Index (GCI) for the past five years. The index is determined by a combination of macroeconomic factors, which include the quality of state and public institutions, the effectiveness of the banking system, the level of technology and infrastructure development.
A house with your own hands is your home
It is known that demand generates supply. In the Finnish real estate market, there are new suburban housing, secondary offers, and land plots for development, usually with a lake coastline in the property. A huge selection of vacant territories gives the buyer the opportunity to build a house himself – according to his taste, needs and capabilities. Moreover, the cost savings in this case is 10-20%.
So, a newly built ready-made cottage with an area of 100-120 sq. m. m on the shore of Lake Saimaa, with a coastline of 70-100 m and a plot of 0.5 hectares, will cost 370,000-450,000 euros. And the cost of housing in remote areas will be much cheaper. For example, a hunting lodge with an area of 150 sq. m. The m built in 2003 in North Karelia, 55 km from the airport, will cost only 160,000 euros.
The price for ready–to-sell plots with an area of 0.4-1 ha, usually with electricity, is, depending on the location, the presence or absence of its own coastline and the proximity of infrastructure, 30,000- 80,000 euros. And the cost of construction, including utilities, sauna, fireplace and finishing to taste, will be about 1,800-2,000 euros per 1 sq. m.
The package of necessary documents usually includes a construction permit, which specifies what the building area should be, the height of the future house, its total area (which, as a rule, does not exceed 200 square meters in typical construction), the distance from the lake shore and from neighbors, etc. This permit is a guarantee that that the house built in accordance with the requirements will not turn out to be an illegal building.
There is an offer for development for every taste and need, up to land plots with an area of 7-20 hectares for resort or cottage development, partially or completely undeveloped. As they say, there would be a desire, but there will definitely be an offer corresponding to it in Finland!