SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Flats under pressure from debts

The country's homeowners' associations are becoming increasingly indebted and bankruptcies are rising. It's quite clear that it's a tougher situation. Especially for the associations that are renegotiating their loans now to a completely different interest rate, says Therese af Jochnick at Sweden's Homeowners' Centre (SBC).

» Updated: 16 July 2024, 15:08

» Published: 10 June 2024

Flats under pressure from debts
Photo: Janerik Henriksson/TT

Country's homeowners' associations are becoming increasingly indebted and bankruptcies are increasing.

Rising fees and delayed renovations have become the norm – and many homeowners' associations are under intense pressure.

By the turn of the year, 370 associations had debts with the Enforcement Authority, according to a compilation from SBC. This represents a 298% increase since 2013, when 93 associations had debts at the end of the year.

Furthermore, 116 associations have been noted as having debts with the Enforcement Authority during the first quarter of the year.

Similarly, the number of bankruptcies among homeowners' associations has risen. In 2022, the number was 71, and last year it was 40. The average over the years 2013-2021 was 18 bankruptcies per year.

At the same time, there may be more reasons than just soaring costs leading to bankruptcy.

She stresses that it is important for homeowners' associations to increase their fees in line with costs. Her recommendation is to draw up a multi-year budget and an updated maintenance plan for the association.

To minimize risks, flat owners should look at the association's indebtedness and savings, explains Therese af Jochnick.

Checking whether the association owns the land is another important thing. Associations that hold the property with a lease are more economically exposed as the local authority can increase the lease fee. Liabilities, interest rates and terms and conditions are other things to keep an eye on.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Stockholm Stock Exchange Rises
1 MIN READ

Stockholm Stock Exchange Rises

Japanese households receive part of billion package
1 MIN READ

Japanese households receive part of billion package

Airline Launches Thailand Route from Arlanda
1 MIN READ

Airline Launches Thailand Route from Arlanda

Slight increase in apartment building
1 MIN READ

Slight increase in apartment building

Northvolt's CEO is leaving: An emotional day
3 MIN READ

Northvolt's CEO is leaving: An emotional day

Strike hits French Cognac
1 MIN READ

Strike hits French Cognac

Upbeat in Japan – Gloomy in China
1 MIN READ

Upbeat in Japan – Gloomy in China

Took a tough stance on crypto companies - resigns
1 MIN READ

Took a tough stance on crypto companies - resigns

Ingvar Carlsson on PG: "A very loyal friend"
2 MIN READ

Ingvar Carlsson on PG: "A very loyal friend"

No Wage Guarantee in American Process
1 MIN READ

No Wage Guarantee in American Process

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

Unstable US stock market ends on a plus
1 MIN READ

Unstable US stock market ends on a plus

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Reconstruction in the USA to save Northvolt
3 MIN READ

Reconstruction in the USA to save Northvolt

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey