Oyvind Osjord is originally from Stavanger, but lives in Oslo. However, he chose to invest in rental properties in his hometown, rather than near it.
He chose to buy apartments for rent, because he wanted to invest with high risks as a young man. At the same time, he wanted the investment to be easy to rely on, to pursue development and return.
This can be stressful—especially when a tenant’s Netflix account fails for the fourth time, or when neighbors are noisy at night and the tenant wants to move in, Osjord tells Nettavisen.
He owns more than four apartments, but now he is selling the one he used to live in to give priority to building a cottage.
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compete with companies
As the owner of the property, he has to put up with central bank interest rates of up to four percent, which means the effective interest rate can reach, and in the worst case, more than five percent. At the same time, he must have enough money on his account to replace a washing machine, and for the apartment to be empty for 1-2 months a year, maximum. He must also take into account that the tenant from time to time does not pay in a timely manner.
That’s why he thinks it’s exciting to get into a rental market where companies rent apartments to their employees.
– This is where Stavanger emerged as an attractive region, he explains.
Osgurd goes on to say that the home city can attract commuters, or international employees who work permanently internationally during a certain period.
– They tend to stay for two to five years, have high requirements for cleanliness and standards, but they tend to place little burden on the apartment and fixtures by the fact that they work a lot and like to travel home on weekends and holidays.
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Two different markets
One should be able to make the same investment, Osjord believes, in any of the large Norwegian cities.
– as long as you agree to the difficult task of paying all the interest and premiums at all times, and stay true to the idea that you don’t have to make a living by “market timing” either at home or abroad.
However, he stresses that Stavanger and Oslo are two different markets.
– For a secondary home rental, the two cities are incredibly different. One thing is that a bank requires higher capital in Oslo, but in addition to that, there are very high square meter rates which means that maintaining the same standard requirements I aspire to would have been more difficult.
In short, Osgurd believes in choosing a place that works for you and gives everything to become good at rather than trying new markets and growing, whatever the cost.
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Rental prices as in Bergen
– The reason is probably that house prices in Stavanger are 20 percent lower than the national average, and less than half that of Oslo. However, the rental prices are about the same as those in Bergen, explains Head of Department Nina Byberg at Eiendomsmegler 1 Boligutleie to Nettavisen.
She also says Stavanger’s good job market also means that rents can be expected to be higher in the city than the national average, as there are few homes for rent in the area.
– We note a strong increase in the demand for rental properties. Our experience is that this is linked to the good job market in the region.
A recent survey among commercial clients of SpareBank 1 SR-Bank showed that companies expect an increase in hiring in the future, despite the prevailing mood in the market.
Blybakken believes this means one can expect the good rental market to continue well into the future.
– We actually have to go back to 2012 to find this low number of housing ads in finn.no in our market.
She adds that they are in daily contact with the housing coordinators of the large companies, who are requesting more housing for both travelers and families who will be in the Stavanger area for about three years.
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