April 15, 2016, 3:45 pm

House Price in Sweden Skyrockets

by: The Financial Blogger    Category: Miscellaneous
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I’ve given lots of thoughts about travelling lately. In fact, I’m also looking at possibility of leaving the country to establish my family elsewhere. As we currently live in Canada, one of the best country in the world, I don’t necessarily want to downgrade our lifestyle either.

 

Among great countries to live in, I found Sweden being very high on my list…Sweden is a great country for those who appreciate nature and outdoor activities. This is one of the reason why this country is on my list. They benefit from an amazing landscape and have several national parks. Since our family love hiking and being outside, it seems this country is a perfect match for us.

 

Unfortunately, Sweden is not perfect… I recently checked how much it cost to live there. The country known for its hockey team and great companies such as Ikea is anything but cheap. For example, the housing market is very expensive. Over the past five years, housing price in Sweden has been skyrocketing:

sweden

Source: Ycharts.

As you can see on the chart above, their house index has taken a sharp uptrend since 2012. The housing market seems a little bit out of end at this point in time. I’m not so sure I could be able to buy a house there!

Why Sweden is so Expensive?

Year after year, Sweden ranks very well for to happiest countries in the world. This year, it ranks on the 10th place. I guess the fact the country is focusing on youth education helps the whole population finding good jobs and get a great lifestyle. When you have a good job, things are always easier!

Another factor explaining why Sweden is so expensive is the fact it is a very small country. Therefore, there aren’t much land to build houses. When land is limited, housing price tend to get more expensive too.

Finally, because Sweden as a neutral country did not actively participate in World War II, it did not have to rebuild its economic base, banking system, and country as a whole, as did many other European countries. Sweden has achieved a high standard of living under a mixed system of high-tech capitalism and extensive welfare benefits.

How Could I Possibly Move to Sweden?

With my financial background and my websites, I’m pretty sure I could get a job there and establish my family. However, getting credit might be a challenge for a while. For example, getting a mortgage when you are a foreigner in another country is quite complicated.

One possibility would be to get an loan from an intermediary loan firm. They usually charge higher interest rates, but they show more flexibility in their approval grid. While this could be a possibility, I’m not convinced I can move there. I’ll probably start by visiting this country first!

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