Strong Economic Growth Good for Property in Finland
Overseas Property News - Finland
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According to Statistics Finland, employment has been growing and unemployment falling constantly since July 2007. In May this year there were 55,000 more people in employment than May last year and only 8% of the population unemployed with a further 48,000 jobs currently available. In a stable and sustainably growing economy, wages have risen by an incredible 9.4% already this year and building costs have increased 4.3%. This level of sustainable growth is good news for the property market, because rising costs continually drive house prices up.
Great news for people who have already bought property in DSR's Aurora Sky development at the foot of the downhill ski slopes of Levi ski resort in Lapland. Good news because their property is likely to have increased substantially in value by the time it is completed this time next year.
The Aurora Sky development is a ski-in ski-out hotel-apartment complex of fully serviced, fully furnished studio, 2 and 3 bedroom apartments priced from £90,000. But the most impressive thing for investors is the two rental options geared at allowing investors to maximise on the massive rental potential of the area and the apartments.
The safe option is to take the 6%p.a. guaranteed rental yield for the first five years. But these apartments are easily capable of fetching 10-12% rental yields, because of the six months world class skiing, wide-range of spring and summer activities, the beauty of the place and the Santa trips at Christmas, all of which combine to give an all-year round rental market. So, the slightly more risky, but potentially much more rewarding option is to take the rental management, which allows you to earn the full potential of your property minus a 10% fee.
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