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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM 1 Inputs Conclusion Closing costs overview Suggested 2 Common (Suggested) Input rent: 8,000 kr. State fees, can't be negotiated Registration of deed (fixed cost part) 1,660 kr. 1,660 kr. 3 Investment growth 6% 6% The actual cost of owning over this period corresponds to a monthly rent of 8,800 kr. If you add the opportunity cost (that is if you invest the downpayment in stock and keep investing the difference in monthly costs) then the costs of owning corresponds to a monthly rent of 11,400 kr.. Finally if you consider buying vs. renting at 8,000 kr. per month then BUYING potentially saves you 1877000 kr. over 15 years. Registration of deed (0.6%) 15,000 kr. 15,000 kr. 4 Home apreciation 1% 1% Registration of mortgage (fixed cost part) 1,660 kr. 1,660 kr. 5 Length of stay (in years) 15 15 Registration of mortgage (1.5%) 30,000 kr. 30,000 kr. 6 Registration of bank loan (fixed cost part) 0 kr. 0 kr. 7 Buy (Suggested) Registration of bank loan (1.5%) 0 kr. 0 kr. 8 Initial costs Banking fees. Can (and should!) be negotiated near 0 Establishing fee for mortgage 0 kr. 0 kr. 9 Cost of home 2,500,000 kr. 2,500,000 kr. Savings at 8,000 kr. rent: 1,877,256 kr. Transaction fee and rate cut on underlying bonds 20,000 kr. 20,000 kr. 10 Closing costs 86,820 kr. 86,820 kr. Approximate breakeven rent (costs) 8,800 kr. Registration service 0 kr. 0 kr. 11 Down payment 20% 20% Approximate breakeven rent (total) 11,400 kr. Establishing fee for bank loan 0 kr. 0 kr. 12 Initial repairs 20,000 kr. 20,000 kr. Expedition fee 0 kr. 0 kr. 13 Total initial costs 606,820 kr. 606,820 kr. How to calculate rent? Approximate breakeven for expected total costs Bank guarantee fee 1,500 kr. 1,500 kr. 14 Recurring costs 11,400 kr. Banking fees for optional services you can avoid Interest hedging fee 0 kr. 0 kr. 15 Mortgage amount 2,000,000 kr. 2,000,000 kr. Statement using G3-rent Renting: Buying: Interest hedging rate cut 0 kr. 0 kr. 16 Mortgage term 30 30 Actual costs Professional advice - can be avoided but lawyer assistance is encouraged Property inspectors fee 0 kr. 0 kr. 17 Mortgage type Principal and interest Initial costs 45,600 kr. 606,820 kr. Lawyer fee 5,000 kr. 5,000 kr. 18 Mortage interest 2.50% 2.50% Recurring costs 2,052,000 kr. 2,284,923 kr. Shop for a good offer Change of ownership insurance 12,000 kr. 12,000 kr. 19 Monthly mortgage payment pretax 7,857 kr. 7,857 kr. Net proceeds 45,600 kr. 1,299,646 kr. Those are left out as they apply to renting a new place too - add them to total closing costs if you are considering buying vs. staying in current apartment Extra rent 15,000 kr. 15,000 kr. 20 Monthly mortgage payment posttax 7,035 kr. 7,035 kr. Actual total costs 2,052,000 kr. 1,592,097 kr. Moving costs 5,000 kr. 5,000 kr. 21 Bank loan 0 kr. 0 kr. Speculative difference 22 Bank term 10 10 Opportunity costs 947,832 kr. 1,622,300 kr. 23 Bank interest 4% 4% Appreciation 0 kr. 194,207 kr. 24 Monthly bank loan payment pretax 0 kr. 0 kr. Expected total costs 2,999,832 kr. 3,020,190 kr. 25 Monthly bank loan payment posttax 0 kr. 0 kr. Actual yearly costs 171,000 kr. 132,675 kr. 26 Yearly maintenance 24,000 kr. 24,000 kr. Expected