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The hidden extra costs when buying property in Norway

Buying a home in Norway comes with a few more costs than the list price. Here are some additional outlays you should consider before purchasing a Norwegian house or apartment. 

Published: 22 September 2022 16:21 CEST
Updated: 5 February 2024 12:05 CET
Pictured is a home in Norway.
These are the hidden costs associated with purchasing a home in Norway. Pictured is a home in Norway. Photo by redcharlie on Unsplash

Purchasing a house or apartment is usually the highest value purchase one can make in life. However, with such large figures involved when buying a house, it is easy to overlook some of the more hidden but still pricey costs that you’ll have to cover to make a house your home. 

Below, we’ve listed the most important you need to know about. Some of the costs you’ll need to pay every month when you purchase a home, others can put a serious dent in your budget- or jeopardise the purchase if you overlook them. 

Fellesgjeld

Many homes in Norway, especially apartments in Oslo, belong to a housing association or borettslag. A housing association in Norway is a legal entity similar to a company or business, where buyers purchase a share and get the exclusive right to live in a property within a block. 

That’s because you buy into the housing association rather than the property itself. But, much like a company, housing associations also have overheads and debts. 

Fellesgjeld is the shared or collective debt of the association. The joint debt includes original building costs and renovation works, such as a new roof that have taken place. The instalments and interests are paid monthly. So when buying into a housing association, you will need to consider the joint debt payments as part of the price. 

READ MORE: The key things you need to know about Norwegian housing associations

Felleskostnader

Felleskostnader is the shared monthly repayments on the collective debt that residents of housing associations pay. However, there are a number of other costs included in these monthly repayments, such as municipal fees, porter services, cleaning communal areas and building insurance. 

One more thing to note is that you will need to pay municipal fees wherever you decide to call home. 

Renovation costs 

Fixer-uppers may seem like the best way to grab a bargain, but beware, renovating certain rooms in Norwegian homes can cost an absolute fortune. 

Bathrooms and kitchens in Norway need to have the work signed off by the municipality and be completed by a qualified tradesman- this means you’ll likely need to get the professionals in. Bathrooms, as an example, cost an eye-watering amount to have renovated: between 200,000-300,000 kroner, due to the requirement for them to be done to wet-room standard. 

Dokumentavgift

This is a not-so-hidden cost as plenty of countries have stamp duty. When you buy a freehold property (one that isn’t part of a housing association), you will need to pay 2.5 percent of the purchase price to the state. However, homes in housing associations are exempt from this.  

Banks rarely offer additional financing for stamp duty, so it’s worth taking this cost into account when purchasing the home. For example, a house with a sale price of four million kroner will cost 100,000 kroner in stamp duty- so always save a little bit of budget left over to cover this cost. 

Tinglysingsgebyr

You will also need to pay a land registration fee when purchasing a property. When submitting this online, it will cost 540 kroner. If you prefer not to do things digitally, then you can expect to pay 585 kroner to file the paper form. 

The fee for buying into a housing association is slightly cheaper. Following the land registration, you will need to pay the stamp duty. 

Getting drawn into a bidding war

Plenty of homes in Norway have an asking price where bids will begin rather than a set cost.

When buying a home, the true cost will likely be significantly above the asking price. Getting drawn into a bidding war can increase the price of a house significantly. 

Bids in Norway are more or less legally binding. If you bid outside your means, you could find yourself in trouble. 

To avoid getting pulled into a bidding war, you should consider purchasing a new build- which are sold for a set fee. 

READ ALSO: Six key tips to survive the bidding war when buying a house in Norway

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PROPERTY

Why do all homes in Norway seem to look the same?

Of course not every home in Norway is identical but there are several major trends that are easily identifiable in most cities that might give you the impression that they all look the same.

Published: 25 June 2024 12:47 CEST
Why do all homes in Norway seem to look the same?

Before we explain the similarities there is plenty of variety among homes in Norway.

Different regions in Norway have their own styles, and people’s personal tastes and modern trends also play a role.

Furthermore, urban areas are way more eclectic compared to rural and more isolated regions, and at the same time, the biggest cities need to deal with population pressure.

READ MORE: What you need to know about the Norwegian housing model

However, it is undeniable that a few significant trends dominate the landscape in most of Norway’s towns and cities.

The traditional wooden house

The first trend is the traditional wooden house, which is often medium-sized and square.

These homes, painted in classic colours such as white, dark red, ochre yellow, or brown, are omnipresent across Norway.

While you will easily spot them in any smaller town, even the two largest cities – Oslo and Bergen – still boast many traditional wooden houses.

READ MORE: Oslo versus Bergen: Five big differences between Norway’s two largest cities

If you take a walk to Bergen’s Old Town, you’ll find an array of traditional wooden houses in the area behind the UNESCO-protected Bryggen Wharf. Many wooden houses can also be found in the centrally located Verftet neighbourhood on the Nordnes peninsula.

Their uniform appearance stems from historical building practices and the practicality of using wood as a primary construction material in a forest-rich country.

These homes not only serve as a testament to Norway’s architectural heritage but also adapt well to the country’s climate, providing insulation against the cold.

Additionally, local building regulations often dictate specific architectural styles to preserve the cultural heritage of Norwegian towns and villages – especially in neighbourhoods with a rich past.

Lofoten houses

Wooden houses in Reine, Lofoten Islands, northern Norway. Photo by Jonas Geschke on Unsplash

Modern Norwegian housing

The second trend includes more modern housing solutions, such as terraced houses, new builds, and apartment blocks.

These structures are increasingly common in urban areas where space is at a premium. Many construction projects in the outskirts of Bergen feature this kind of development as the city expands to accommodate its growing population.

This trend reflects contemporary architectural styles and is often designed with energy efficiency and sustainability in mind.

The uniformity here is driven by modern urban planning in cities like Oslo, Bergen, Trondheim, and Stavanger.

Aker Brygge

The Aker Brygge wharf area in central Oslo. Photo by Meriç Dağlı on Unsplash

Traditional vs modern: What advocates of the two styles say

Supporters of traditional Norwegian homes argue that these old structures are very durable. They point out that the wood used in homes from 40 to over 80 years ago comes from slow-growing trees, making it dense and rot-resistant.

Compared to modern building materials, which they often view as inferior, they claim that wood in these older homes ensures longevity – as long as the house has been adequately maintained.

READ MORE: What you should know before buying a house in rural Norway

Furthermore, the longevity of old wooden houses in Norway is well-documented. Many homes built in the early 20th century still retain their original structure despite multiple renovations.

As long as the wood remains dry, it can last for decades – or even centuries.

On the other hand, with advancements in building technology, modern houses are designed to minimise heat loss, reduce energy consumption, and lower utility bills – particularly relevant in the cost-of-living crisis plaguing Norway and Europe in recent years.

These homes often feature high-level insulation, double or triple-glazed windows, and advanced heating systems, which make them more environmentally friendly and cost-effective in the long run.

Another key advantage of modern homes is their adherence to strict building codes and standards.

Today, Norwegian houses are built to high specifications, ensuring safety, comfort, and durability. Mandated ventilation systems improve indoor air quality and prevent issues like mould and dampness.

In addition to technical improvements, modern homes are also designed with contemporary lifestyles in mind. Open floor plans and larger windows create bright and adaptable living spaces.

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