pros and cons of investment in rivitalo vs kerrostalo

Where to buy? Where can I find? How do I? Getting started.
Post Reply
nimap
Posts: 40
Joined: Fri Nov 01, 2019 10:07 pm

pros and cons of investment in rivitalo vs kerrostalo

Post by nimap » Fri Nov 13, 2020 11:36 pm

Old apartment dwellings has more maintenance costs but are cheaper to buy and always have risk of some unplanned renovations.

Rivitalo is similar like block apartments but usually have higher maintenance costs and also fetch bit higher rent. I am unaware about the renovation decisions in such housing, I am guessing the pipe renovations in rivitalo would be much costly than similar job in kerrostalo as the community to bear the costs are smaller.

Anyone has first hand experience about renovations in rivitalo and how frequent they are compared to kerrostalo? If you have invested in such property then which one do you prefer and why

Thank you in advance



pros and cons of investment in rivitalo vs kerrostalo

Sponsor:

Finland Forum Ad-O-Matic
 

betelgeuse
Posts: 3661
Joined: Thu Aug 29, 2013 1:24 am

Re: pros and cons of investment in rivitalo vs kerrostalo

Post by betelgeuse » Sat Nov 14, 2020 11:33 am

nimap wrote:
Fri Nov 13, 2020 11:36 pm
Old apartment dwellings has more maintenance costs but are cheaper to buy and always have risk of some unplanned renovations.

Rivitalo is similar like block apartments but usually have higher maintenance costs and also fetch bit higher rent. I am unaware about the renovation decisions in such housing, I am guessing the pipe renovations in rivitalo would be much costly than similar job in kerrostalo as the community to bear the costs are smaller.
On a per square meter basis kerrostalo is much higher on average. This is due to fact that a smaller apartment has a larger share of the footprint for the shover room.

inkku
Posts: 816
Joined: Wed Apr 04, 2007 8:26 pm

Re: pros and cons of investment in rivitalo vs kerrostalo

Post by inkku » Sat Nov 14, 2020 5:44 pm

In my opinion you are missing the primary issues in your request. What do you mean with investment? do you want to buy a property to let it or to live there yourself? are you looking for reselling it or keeping it forever? where exactly? how much money do you have?

The best rental income vs invested capital is usually with smaller flats in university towns (Turku, Tampere, Jyvaskyla etc). In my opinion, the best value for a long term investment is in central Helsinki, you cannot lose there, the prices will never stop increasing. However, you have to factor the issue of periodic renovation into the purchase price: pipes, roof, facade. Indeed, the more smaller units (studios for instance) you have in a building, the more expensive proportionally the pipe renovation becomes.

If you want to take a loan, buy and let out a row house, the bank might not appreciate it as they would appreciate a flat in a good location. Row houses are not always easy to let out.

nimap
Posts: 40
Joined: Fri Nov 01, 2019 10:07 pm

Re: pros and cons of investment in rivitalo vs kerrostalo

Post by nimap » Sat Nov 14, 2020 6:18 pm

betelgeuse wrote:
Sat Nov 14, 2020 11:33 am
On a per square meter basis kerrostalo is much higher on average.
you mean even total cost is lower ppm2 is higher.
inkku wrote:
Sat Nov 14, 2020 5:44 pm
In my opinion you are missing the primary issues in your request. What do you mean with investment? do you want to buy a property to let it or to live there yourself?
okay, I assumed property investment would render buying property to rent.
inkku wrote:
Sat Nov 14, 2020 5:44 pm
are you looking for reselling it or keeping it forever?
long term investment rather than ride the market.
inkku wrote:
Sat Nov 14, 2020 5:44 pm
where exactly?
not decided yet, I am looking for cheap properties that needs major renovations. people are selling such properties in cheap to save the cost of renovations. I am thinking about buying such bad condition apartment and pay my share for renovations and rent it afterwards.
inkku wrote:
Sat Nov 14, 2020 5:44 pm
how much money do you have?
Enough for down payments. I'll take loans from bank, mortgage the same apartment for some more loan for renovations and later use the rent to pay the mortgage.
inkku wrote:
Sat Nov 14, 2020 5:44 pm
If you want to take a loan, buy and let out a row house, the bank might not appreciate it as they would appreciate a flat in a good location. Row houses are not always easy to let out.
Thanks, that's right about the row houses but usually they fetch higher rent and long term tenants.
inkku wrote:
Sat Nov 14, 2020 5:44 pm
The best rental income vs invested capital is usually with smaller flats in university towns (Turku, Tampere, Jyvaskyla etc). In my opinion, the best value for a long term investment is in central Helsinki, you cannot lose there, the prices will never stop increasing. However, you have to factor the issue of periodic renovation into the purchase price: pipes, roof, facade. Indeed, the more smaller units (studios for instance) you have in a building, the more expensive proportionally the pipe renovation becomes.
So it means my cost in apartment renovations = total renovation costs / number of apartments? instead of price per square meter?

inkku
Posts: 816
Joined: Wed Apr 04, 2007 8:26 pm

Re: pros and cons of investment in rivitalo vs kerrostalo

Post by inkku » Sun Nov 15, 2020 5:53 pm

nimap wrote:
Sat Nov 14, 2020 6:18 pm
inkku wrote:
Sat Nov 14, 2020 5:44 pm
Indeed, the more smaller units (studios for instance) you have in a building, the more expensive proportionally the pipe renovation becomes.
So it means my cost in apartment renovations = total renovation costs / number of apartments? instead of price per square meter?
Sorry, I was not clear, I was referring to the same as betelgeuse. In a building which has many smaller flats such as studios, the unit pipe renovations costs are much higher per m2 than when the building consists of larger flats.


Post Reply