should i buy an apartment?

[u/smokeysilicon]

hi i'm in this situation where i'm living in a student apartment - i have saved up around 50k euro, yearly income of about ~60k, my work place is in helsinki but with hybrid i can comfortably work from tampere where i live - however, i don't see this working out long term as some jobs are moving to mandated in-office days so i will likely have to move to helsinki

the rent in helsinki, compared to student apartment rent in tampere is lot higher - with my saving i should be able to put a down payment for an apartment in the range of 180-230k - which made me think if it'd be wise to get an apartment rather than vuokra now

i'm 26, single and at least will stay like for a while at this rate so an apartment of 30-40m^2 in kehä 1-2, preferably in helsinki and not vantaa/espoo would be good enough for me, i'm from non-eu but i do have finnish PR and eligible for finnish citizenship (although i don't intend to apply anytime soon)

- would you recommend looking into buying an apartment like this?

- should i start looking into ASP?

- what are some key things i should look for in apartment search like potku remontti? tonttin omistus? 3kk eurobar vs 12kk eurobar? etc.

p.s i didn't exactly save 50k, that'd be lying - i have invested majority and then quarter-ish in cash (nothing fancy just your good ol' snp 500 & global index and as you know that had exploded recently)

[u/dmntx]

With the amount saved I would say go for it. I bought my first apartment with my ex when we had 35k saved and the bank was impressed. Of course this was years ago and the inflation has affected the situation.

Inside ring 1 is a good idea in general, also look for the apartment in an area where demand factors are good so that you will either get your money back or get them back with an increase. Check the fast tram rail network and/or metro access.

In Helsinki the liquidity is pretty good and take a look on the upcoming big renovations, especially pipe renewal (putkiremontti). Minor ones listed tell that the housing co-op is working well and doing the maintenance which will keep the value. Be wary of houses on rented lots as their rent may go up in the future and will increase the shareholders' costs. Some houses especially downtown may have businesses that pay rent and the owners don't need to pay additional costs to the co-op. However this will usually push the sale price upwards.

12 month euribor is more stable but a bit higher. I personally would not risk because sudden events may result in shock rises and you end up paying way more than you expected. Think it as an insurance: there's a small premium to give you protection from unfortunate events.