7 First-Time Home Buyer Mistakes I Wish I Would've Known (in Denmark)
Hey Friends— In today's video I'll tell you six multi-million kroner first-time home buyer mistakes. If you're planning to buy a house in Denmark, these are six must-knows that will save you time, money and peace of mind.
1- Don't Fall for the m2 Lie
- Important! The apartment sizes advertised in the main portals is not the real apartment size.
- In Denmark, you’ve two ways to measure the size of a flat:
- The difference between the two measurements can be big. I bought an apartment that is 102 sqm in tinglsyt area, but was advertised as 113m. In the building next to mine, an apartment sized exactly like mine — 102 sqm, with exactly the same layout — was advertised as 125m (!), all because it “owned” more of the corridor and basements.
- BBR-boligareal: this is what you see in adverts, in the realtors’ sites, etc. This measurement includes the apartment itself, but adds to the total your “share” of the corridors/hallways and common areas.
- Tinglyst areal: this is the “real” area — your apartment itself, including balconies, but no corridors and common areas. This is what you really get.
- These extra sqm are useless. You can’t, after all, put stuff on the corridor, nor send your visiting friends to sleep in the common areas. You’re paying extra for meters that you don’t need and can’t really use. Worst thing is you’ll be paying property taxes on those corridors and common areas.
- If you’re very interested in a specific place, your best bet is to measure the sizes yourself as well.
2- Use a Lawyer
- In my opinion, the most stupid thing you can do in the world is to spend 4,5,6m kr. and not be willing to pay 10K for a good lawyer. If you're making the biggest purchase of your life, make sure that you get an expert having your back.
- You CAN buy a house without a lawyer, but in my opinion it's borderline insane. I strongly recommend you use a lawyer. He/she will also give a helpful hand to understand all the legalities, guide you when to sign or not sign documents, and be your guide to the fine print.
- You can ask your lawyer for negotiation advice, too. It's so much worth it. I worked with a great lawyer and share his contacts in the video description.
3- Bid for Multiple Properties
- This is straight negotiation advice: if you're obsessed or emotional about one specific property, you'll likely be getting a worse deal than you could.
- There are 1000s of flats or houses. Don't be obsessed with just one. Especially if the market is tight as it's in 2021 and there are not many available.
- It's better to wait it out than get a bad deal.
- So, bid for multiple properties. You do this by putting a time limit for your bids - give the seller 1-2 days to reply yes/no. Your lawyer can help you.
4- Get Bank Pre-Approval Beforehand
- Picture this situation: you love a flat, you want to bid, but you need to rush everything...
- You end up losing money. The bank sees your desperation, doesn't negotiate. You don't get the loan you want, etc.
- Instead, have the bank pre-approval set before you even start bidding. It's a no brainer.
- That is for the actual purchase price, the type of loans you'll get access, any perks (e.g. gold card), and more.
5- Don't Think You Pay Negative Interest
- You don’t. There’s something called bidaggsats- you pay 1% more than you think you do. If you get a 1,5% pa. loan, you'll likely pay around 2,5% or so. Mind.
- Most people don’t understand the mortgages in Denmark - download my guide!
6- Don't Be Desperate
- Rent is expensive, but transaction costs are more so. Don’t manufacture urgencies.
- If I look now, I can’t find an apartment I like in my area - they’re all offline and the ones left not good. In that case, I don’t buy. Wait for a better one that fits your specs to appear. I looked for 10 months until I got mine
These are the top six. If I had to add two more, it would be that you must know two absolutely critical Danish-specific regulations you get into when you buy a flat. You can check them out in the video over here.
