Biggest investment of an expat in Sweden is the purchase of an apartment.
But only a few people understand how Bostadsrättsförening (BRF) model functions.

Quick Points:

• When you buy an apartment in BRF, you have the right to live in the apartment. (Renting it out is not easy and it depends on the BRF).
• BRF also has LOANS from banks, meaning the price of your apartment is split between you and BRF. When interest rates increase, the BRF payments towards the bank increase and you need to pay higher Avgift (maintenance fee to BRF).
• Understand BRF Annual report and its loans, interest payment requirements before you buy an apartment.
• You and all other apartment owners are members of BRF, and it has Board members who are responsible for apartment building maintenance of common areas, water, plumbing, facade, etc.
• You are responsible for maintenance of anything inside the 4 walls of your apartment.

Based on my experience:

• Don’t be in a hurry to purchase an apartment in the first year of arrival to Sweden.
• Please get a loan promise first from the bank before you go to bidding.
• Understand floating interest rates, fixed interest rates, and how they work.
• Understand how to negotiate with the bank, and sometimes they will ask you to move your employer pension to the bank you are approaching for a loan.
• Bank offers some add-ons like life insurance or insurance for payment of loans when you lose your job. Evaluate your needs before signing up.

It’s better to buy an apartment once the person/family has received a Permanent Residence in Sweden or when both people in the family are working, hence in case of job loss, the situation is manageable.

Single-income person/family should buy an apartment after receiving Permanent Residence in Sweden.