Buying a Home in Finland

Buying a home in a foreign country can be a daunting task, especially if you're unfamiliar with the local real estate market and regulations. This guide aims to provide expats with a comprehensive overview of the home buying process in Finland, covering everything from finding properties for sale to understanding the legal requirements and potential pitfalls. Whether you're planning to relocate permanently or looking for a vacation home, this guide will help you navigate the Finnish real estate market with confidence.

How Do I Find Houses for Sale in Finland?

There are several online platforms where you can find properties for sale in Finland. Websites like Oikotie, Etuovi, and Jokakoti list a wide range of properties across the country. You can filter your search based on location, property type, price range, and other criteria. Real estate agencies also list properties on their websites. It's advisable to engage a local real estate agent who understands the market and can guide you through the process.

Are There Restrictions on Foreigners Owning Property in Finland?

Finland has a very open policy when it comes to property ownership. There are no specific restrictions on foreigners buying property, regardless of whether they reside in the country or not. However, if the property is located in the Åland Islands, a special permit from the local government is required, as this region has its own property laws.

Does Finland Have an MLS Type System?

Finland does not have a Multiple Listing Service (MLS) like in the United States. However, most real estate agencies and online platforms provide comprehensive listings of available properties. These platforms are regularly updated and provide detailed information about each property, including photos, location, size, price, and contact details of the seller or agent.

Do Brokers Have Licenses and How Do I Know if They are Licensed?

Real estate brokers in Finland must be licensed by the Finnish Regional State Administrative Agency (AVI). You can verify a broker's license by checking the public register maintained by AVI. It's important to ensure that you're dealing with a licensed broker to protect your interests and avoid potential legal issues.

What Documents are Required When Buying a Home?

When buying a home in Finland, you'll need to provide several documents. These include your passport or other identification documents, proof of income or financial capacity, and a signed deed of sale. The deed of sale must be signed in the presence of a notary. After the sale, the buyer must register the property with the National Land Survey of Finland.

Do I Need a Lawyer When Buying a Home in Finland?

While it's not mandatory to have a lawyer when buying a home in Finland, it's highly recommended. A lawyer can help you understand the legal aspects of the transaction, review contracts, and ensure that all necessary documents are properly prepared and filed. The cost of hiring a lawyer can vary, but it's generally around 1-3% of the property's purchase price.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both options are common in Finland. Some buyers prefer to pay in cash, especially if they're buying a lower-priced property. However, most people take out a mortgage. Banks in Finland offer mortgages to both residents and non-residents, but non-residents may be required to provide a larger down payment.

Are There Inspections That Take Place, and If So What is That Process Like?

Yes, property inspections are a standard part of the home buying process in Finland. A professional inspector will examine the property to identify any potential issues or defects. The buyer usually pays for the inspection, which can cost several hundred euros. The inspector will provide a detailed report, which can be used to negotiate the price or request repairs.

What Are Some of the Pitfalls to Avoid When Buying Property in Finland?

One common pitfall is not thoroughly inspecting the property or understanding the terms of the sale. It's important to have a clear understanding of what's included in the sale and any potential issues with the property. Another pitfall is not considering the total cost of ownership, including property taxes, maintenance costs, and utility bills. Finally, it's crucial to ensure that all legal requirements are met and all documents are properly filed to avoid potential legal issues down the line.

Expats Talk about Real Estate in Finland

"I'm a student with limited possessions so I used voovit for the move- not bad but they did insist on me giving a Finnish landline number which we just don't have. Otherwise, it's basically the postal service. We live on the East side but it doesn't feel too rough so far despite its apparent bad reputation. There are a lot of other immigrants in this area, moslems are very visible. So I imagine there are facilities available here for moslems. I recommend living near a metro line as it's very easy to travel to the city but there are buses and trams in other parts of the city," said one expat living in Helsinki.