Several students own home despite record prices

Nordea lowers interest rates financial support wage growthNordea Bank. Photo: Wikimedia Commons

The number of students who own their own homes has increased by 3 percentage points since last year. This despite the fact that housing prices have never been higher.

A survey conducted by TNS Gallup shows that 17 percent of students aged 19 to 29 years old own housing. Last year there was 14 percent.

– Despite high house prices, and more uncertain times in the Norwegian economy, young  people continue into the housing market. The entrance fee is high, and the latest figures show that many parents have dug deep in their wallet for their children to realize dream homes, says consumer economist Elin Reitan of Nordea.

Tuesday Property Norway showed the housing figures for June. The figures showed that house prices had never been higher than in June, and the forecasts for growth in 2016 was revised up from 3 to 5 percent to 7 to 8 percent nationwide. Housing prices are 7.3 percent higher than a year ago.

Vulnerable debt

Inflation in the Norwegian housing market in recent years has meant that housing is seen as one of the best ways to invest money. However, it has a lot to say how financing housing purchase goes.

Reitan warns students against throwing themself into the housing market without having looked thoroughly on both personal finances and future plans first.

– High leverage makes the economy extremely vulnerable. As a student, it can be difficult to know with certainty where you will get a job after completing studies. The studies may also open up opportunities for studying abroad, or other reasons for displacement. It is more difficult if you are a property owner, she says.


Source: NTB scanpix / Norway Today