The dream of a red cottage with white corners could end up being much more expensive than many people anticipated. A new analysis shows how costs continue to mount even when the house stands empty—and the differences between various parts of Sweden are enormous.
Länsförsäkringar has calculated the figures for a newly purchased vacation home measuring 60 square meters, worth just over 2.1 million kronor and financed at 70 percent, reports Daily News (DN).
The result: 95,634 kronor per year.
This includes, among other things, interest, property tax, utilities, municipal water and sewer services, insurance, and a maintenance reserve.
– What stands out is that it’s more expensive than people think. Many people dream of a red cottage with white corners, but they forget about costs they didn’t factor in from the start, ", says Stefan Westerberg, personal finance expert at Länsförsäkringar.
For someone who uses the cabin for only four weeks a year, the cost amounts to 23,908 kronor per week of use. If the cabin is used for three months, the cost drops to 7,969 kronor.
Stockholm is the most expensive – Kronoberg is the cheapest
Geography makes a big difference. In Stockholm County, the estimated annual cost is close to 114,000 kronor. In Kronoberg, it hovers around 77,000. The difference is primarily due to housing prices and, consequently, interest expenses.
At the same time, there are more affordable ways to own a vacation home. According to the calculations, a simpler summer cottage with its own well and a small mortgage can be significantly less expensive. Furthermore, the vacation home in the model has increased in nominal value by 51 percent over ten years.
– The increase in value isn't a guaranteed value until you sell the house, ", says Westerberg.
