Brrrr or not in sweden

3 Replies

Hello, I am living in sweden and i have since 2013 bought 2 single family houses. I have renovated the two of them and also got them re-estimated. One of them is estimated the doubble it's bank loan. The other is estimated more then the doubble of its bank loan. I still can't qualify for a new loan in aim to re-invest in a third house. What do I do wrong? I want to brrrr but to qualify for having a new loan I need a regular job according to the banks that I have spoken to in order to pay off the loans each month. It seems like the banks don't care that I have tenants... Can someone tell my what Im doing wrong? In sweden it is not at all common to get a hardmoney lender eather by the way.  Thank you for a great forum!

Hi, based on your description about the banks I assume that you own the two houses in your own name, not under a corporation. That means that the banks will have a hard time to loan you more money based on the situation, the templates they use for lending money doesn't account for investments in houses. It just doesn't fit the model here. 

I would look into the opportunity to transfer the houses to a Corp (Aktiebolag) instead and show a budget to the banks based on this instead. Then you as a person are out of the equation, the banks will still request you to act as a security for the loan but your company is used in the template instead.

I guess that you already talk to all the major banks in Sweden, you always have to shop around to get the deals done. If you still can't make it, try to move to multi family houses instead of singel family houses. By that you change the template the banks are using. Much easier to get loans approved on multifamily instead of single family.

Good luck! 

//Ulf

@Ulf Mansson

Thank you for advise! So If I do change my private situation to a corporate one as you mention - how about taxes on the noi? As a private owner you dont pay tax on income less then 50000 sek per unit. What happends tax-wise in sweden by owning several houses/multi-family houses corporately? From how many units is that interesting tax-wise? Do you have an advice on book or other source about the subject and the swedish market? Thank you a lot for helping out!

This is an interesting subject, how to use taxes to your advantage. I can highly recommend the book “Tax free wealth” by Tom Wheelwright. You can apply almost everything in the book to Swedish tax laws. So much you can do tax free in your corporation, Sweden is actually a tax friendly country if you do it right.