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Discussion in 'Investments' started by James Fresh, Jan 25, 2016.

  1. James Fresh

    James Fresh Entrepreneur

    So i live in Norway and i am going to start investing on property once i get a proper job

    After my calculations i can make 21.000$ a year on a property after paying taxes,maintenance, interest to the bank.

    The thing is, its SO HARD Getting a loan in Norway for property.. Any advice?

    The average property is 351.000$ a pop.

    I can pay 1.400 a month on loan+interest

    or just 700$ a month in only interest without paying down my loan.

    Cuz i plan on just getting the property to make $$ then sell it again when i have to start paying down on the loan.

    I plan on getting like 5 properties.. Because in Norway you pay 27% taxes on rent income. But once you get 5+ you have to pay 50% of the rent income

    If i can grind up to having 5 houses with loans were i only pay interest.. i have 105.000$ a year on rent income..

    The average shitty apartment in norway is 1.400$ a month with crap location (Outside city)

    The problem is that the banks are really hard to convince to give you a loan.

    Cuz most people have the Consumer syndrome and spent loan money on shitty shit. like new shoes and a new pc etc..

    I just want to make $ on these properties.. Any advice?

    I am considering getting a loan from another country.. Like germany or the US.. But dont know much about the banks in these places...

    Really just want my first property ASAP.. this is such a huge money making shits!!
    Angel likes this.

  2. Federico.Gimeno

    Federico.Gimeno Entrepreneur

    I can relate to your situation. Here in Mexico the banks are a bunch of thieves, the interest rates are insane. So the best thing to do is saving money in a mid-term investment account, choose the one that gives you the best rates with the least risk. Once you have like 60%-70% of the property value saved, get a loan for the remaining 30%-40%. Otherwise you'll end up paying the property for the next 30 years and with huge interest rate from the bank.
  3. Angel

    Angel Entrepreneur

    I'm not sure about Germany but I think it's probably not so easy to get an international real estate loan from the US. I live in the US and just got a loan for my home. I'm definitely not an expert on the matter but you may want to check local alternatives first.

    Another thing, I'm not sure how people treat their properties in general there. Here I have dealt with renting some homes out and nearly every time it ends up costing money instead of making money. Mainly because people tend to be destructive here. I have some horror stories! Some of those "clients" can be eliminated with references, background and credit checks; but still a few slip through the cracks. If this isn't such a problem there, you may not have to worry about it. But it's something to consider looking into. Rental properties can be costly dependent on several things. And of course deposits help with some of that but not all.

    Maybe consider flipping properties instead of renting? As I understand it, you plan to rent them out to make some money and then sell them later? It could work, just finding the funding is going to be a challenge. I'm pretty sure there's a "first time home buyer" program in Norway, there may even be other resources.

    Often here you can go to a local court house and find homes that are being auctioned for cheap due to non payment. But you get what you pay for, and someone who has to move out of their home because they can't afford it... well... you're probably going to have a lot of repairs and remodeling to do.
    James Fresh likes this.
  4. James Fresh

    James Fresh Entrepreneur


    I plan on doing a good screening, only hiring employed people who can prove it with their recent payouts from their jobs+ reference.

    And i will be doing a "Rentout" insurance.. You get 28% of every expenses deducted from the taxes.. so thats like 1-2000$ a year less in taxes on each property.

    Its hard getting the initial loan, even tho you can prove that you can easily pay it.. a lot of idiots who can't pay their loans ruin it for the rest i guess
    Federico.Gimeno and Angel like this.
  5. Angel

    Angel Entrepreneur

    Great idea, it seems you're doing your research :)

    Is there a way you can save and come up with a down payment? This is usually a good indicator to the lenders that you are serious and capable of returning their money.

    One downside to getting a first time home buyer loan is generally you yourself have to live there for x amount of time as your primary residence before you can do anything with it.
  6. James Fresh

    James Fresh Entrepreneur

    There is, but atm in unemployed. Im soon done with my Personal Trainers education.. Then i can work hard.. and make around 3-4000$ a month.. Then i can afford purchasing a property...

    Atm i pay 1000$ a month in rent for renting a apartment.. When i get a job i have more money to live off.. So 1500$ a month in loan down payment won't be a problem at all..

    plus renting out the basement of my first house covers the entire monthly loan..

    Cuz i am going to live in the first house i purchase,, so i won't have any expense of living etc.
  7. Corazon

    Corazon Entrepreneur

    Some 20 years ago, we thought that owning a house is just a dream. We were so lucky when my husband was granted a housing loan by his employer. This year of 2016, we will be fully paid with that mortgage and this house will be ours. And then the installments that we pay would be extra money. What to do?

    I am thinking of getting a housing loan from our office to buy another house, maybe a smaller one that I can pay in 7 years. Instead of saving money in my bank account, we deem it better to invest in real estate because a property like a house appreciates in value.
  8. ReadmeByAmy

    ReadmeByAmy Entrepreneur

    Before when I was still working full time in an accounting firm, I am also working as a part time sales consultant in a real estate developer which up to now I am still part of the company that is why I still market our developers housing projects if I had prospective clients. I had noticed that most of our clients are those young people who had the career and good job and it is a nice choice that they are investing their money for a house and lot which they will own later in the future. Because renting a house for life cannot help you to have your own property investment. The payment scheme is either inhouse financing or bank financing depending on their capabilities on how they can pay. Sometimes there are banking institutions who are tied up with a certain real estate developer that is why a client can be granted of the loan after checking if they meet all the requirements and documents that is needed for the loan.

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