In the last year, house prices have risen sharply. Nevertheless, it has seldom been more favorable to own the home you live in, compared to renting a similar home.
Oda Moe Bjørkelo rents a small apartment at Majorstua in Oslo, but dreams of buying her own home soon.
– It is very expensive to rent, especially in Oslo. I want to enter the housing market as soon as possible, says Bjørkelo.
Buying your own home in Oslo, on the other hand, is easier said than done.
Oda tries to save as much as she can each month to get enough equity.
– Right now it is very easy to save because there are not so many other expenses due to the corona. So then I manage to save quite a lot a month, says Bjørkelo.
If everything goes as planned, she has saved up enough in the space of a year.
– I want to own myself because then I pay down on my own loan and not someone else’s, says Bjørkelo.
TV 2 has visited one of the city center apartments many first-time buyers dream of. The apartment located on Sandaker in Oslo is not particularly large, but will probably cost around four million kroner.
Even with a price tag of several million kroner, the housing costs will be far lower than if you were to rent a similar apartment.
– It is simply because interest rates have fallen incredibly much. If you look at how much you have to spend on servicing interest rates after buying a new home, it is much lower than renting, says Sigmund Aas, partner in Area Statistics.
While the housing costs of owning the apartment in question will be around 6,000 a month, it will cost around 12,000 to rent.
– It has most likely not been such a big difference since 1970, says Aas.
– The market is a bit Texas
The CEO of Privatmegleren says that the housing market is very demanding at the moment.
– Right now I want to say that the market is a bit Texas, if you can put it that way. There has not been much demand since 2016, says Grethe Meier.
The private broker notices that there are far too few apartments for sale in relation to how many people want to buy. This leads to sky-high prices.
In the last year, prices in Oslo have risen by 12 percent. Even if you have been really good at saving, it is almost impossible to save enough to cover equity, says Meier.
Oda thinks it is shocking to hear how much money you can save on owning a home.
– I feel that I lose some money every day, says Bjørkelo.
Although house prices are at a record high, Oda is determined to enter the housing market.
– I just have to keep saving, she says.