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Swedish star Lykke Li sells her bohemian chic Stockholm apartment: in pictures

Swedish indie electro pop singer Lykke Li is selling her bohemian chic Stockholm apartment. Step inside to see what a celebrity home looks like in Sweden.

Published: 25 August 2017 12:45 CEST

Swedish star Lykke Li sells her bohemian chic Stockholm apartment: in pictures

Lykke Li. Photo: Per Larsson/TT

Singer-songwriter Lykke Li, whose full name is Li Lykke Timotej Zachrisson, is one of Sweden's most famous pop exports with albums 'Youth Novels', 'Wounded Rhymes' and 'I Never Learn'.

Currently based in Los Angeles, she formed the band Liv in 2016, a supergroup consisting of her, Andrew Wyatt, Pontus Winnberg, Björn Yttling and Jeff Bhasker. They released their third single, 'Heaven', in June this year.

The Swedish star's Stockholm bostadsrätt (a type of co-operative home ownership common in Sweden) in the Zinkensdamm area of trendy hipster island Södermalm is now on the market via property agents ESNY, for 3,990,000 kronor (almost $500,000), or 99,750 kronor per square metre.

Described as “Söder bohemian chic,” the two-room apartment measures 40 square metres and is on the top floor of a four-storey building (there is no elevator) built in the late 19th century.

Apartment prices in Stockholm have gone up in recent years, and some experts have warned the capital could be at risk of a housing bubble. The average price of a bostadsrätt in the Södermalm area in the past 12 months was 89,177 kronor per square metre, which is still far less than in many other capital cities.

IN PICTURES: Click here to step inside Lykke Li's Stockholm apartment

The view from the balcony. Photo: Jesper Florbrant/ESNY

Why buying property in Austria remains unaffordable for most

Many people living in Austria dream of one day owning a home, but despite recent drops in property prices and interest rates, this dream is still out of reach for many average earners.

In Austria, it is recommended to not spend more than 40 percent of a monthly income on debt repayment.

But new analysis by tariff comparison portal durchblicker.at reveals that even a double-income household would need to spend around 60 percent of their income to afford a 90m² new-build apartment in Vienna.

While the government has created initiatives to improve the affordability, with attractive housing packages, fee reductions and eliminations of certain fees, such as the “Grundbucheintragsgebühr” (land register entry fee) and “Pfandrechtseintragungsgebühr” (mortgage registration fee) for properties up to a certain value, their impact has been limited.

Furthermore, the governments initiatives often overlook the specific needs of lower-income households and may benefit those who are already financially stable, leaving the average earner still struggling to afford a home, according to Der Standard.

READ ALSO: ‘Haushaltsversicherung’ – How does Austria’s home insurance work?

High prices, rates and strict lending criteria

One of the biggest barriers to owning a home in Austria is simply the sky-high property prices. Over the years, property prices have increased, making it more difficult for people with an average income to afford a place of their own. Even with recent minor dips in prices, they still remain high.

Another factor making owning a home challenging is the increase in interest rates in recent years. As a result, both existing variable-rate loans and newly obtained fixed-rate loans have become more expensive. Analysts expect the European Central Bank to cut interest rates by around 0.5 percent in the near future, but according to durchblicker’s calculations, this would initially only create a little relief for loan takers, where instead of around 60 percent, 55 percent of monthly household net income would be needed for debt repayment.

Another issue preventing many from realising their dream to buy a home is the difficulty in obtaining a mortgage. Since July 2022, stricter rules have applied in Austria for the granting of property loans. Loan applicants must have a deposit worth at least 20 percent of the value of their property to be granted a loan, according to the financial online platform Finanz.at. This means that even applicants with higher incomes may struggle to get their dream financed.

Furthermore, many loan takers with variable-rate loans, especially those recently obtained, are facing significant challenges. The variable interest rates have increased significantly since the initiation of these loans, resulting in higher monthly repayments, reported Der Standard.

Few people can afford their own home in Austria, especially in Vienna. Photo by Christian Lendl on Unsplash

Experts suggests fixed rate loans and cooperative housing models

Andreas Ederer, Head of Banking at durchblicker.at, recommends loan takers with variable-rate loans to change to fixed-rate loans. He suggests that fixed-rate loans have become more attractive as they are currently cheaper than variable-rate loans, reported Kurier.

Unlike fixed-rate loans, which have a steady interest rate throughout the loan term, variable-rate loans can change over time in response to shifts in market conditions or the economy.

Experts also suggest alternative models for increasing affordability. One idea is to create more opportunities for cooperative ownership with mandatory purchase options. This could offer a more affordable option where costs such as maintenance and taxes are shared. According to Der Standard, cooperatives also often have access to loans with better terms.

READ NEXT: How can I move into affordable cooperative housing in Vienna?

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