FAQ

FINLAND:

Why should I invest in Finland? / Why should I buy a leisure home in Finland?
Finland, member of EU, is the least corrupt country in the world (Transparency International) .With a secure and stable environment, its GDP growth forecast for 2007 is 2.7% and 2.8% in 2008.
Moreover the pristine nature, high standard of living, friendly residents, high yield rates and good English language skills among Finns make Finland an appealing location for investment.

PURCHASE PROCESS:

How can I check the properties?
There will be inspection trips organized by our partners and us, in order to enable you visit the property and get to know the area better.´

How can I reserve the Chalets apartment?
After deciding on the location and size of the Chalets, you can reserve it with a 2000 EUR deposit (which is considered part of the sales price).

How do I proceed to finalize the deal?
• Signing the deed of sale, selecting the interior package and finance method (loan or own capital) 
• Down payment (15% of sales price) upon signing the deed of sale
• Opening Finnish bank account
• Signing the rental agreement with the service provider
• Planning your own holiday at Chalets apartment for the coming year
For more information please visit the Purchase Process link.

Do I need a solicitor in the purchase process?
Finnish housing law protects you when buying a property. Moreover, we developed the concept so that all the legal and financial implications are taken care of. 

PROPERTY MANAGEMENT:

Who is taking care of maintenance and safety of my property while I am away?
As soon as you become the owner of the Chalets apartment, you become a member of Housing Coopera-tive (Taloyhtiö) which handles those issues.

What is Housing Cooperative?
Housing cooperative (Taloyhtiö) is a legal entity defined by Finnish housing regulations and has a board which is formed by the apartment owners. Housing cooperative is in charge of administration, accounting and maintenance of the property.

What are my obligations as a member of Housing Cooperative?
You need to pay the Housing Cooperative monthly charge that includes:
• Loan instalment and interest (if applicable)
• Property tax
• Maintenance and administration
• Heating and water

How are the utility charges handled?
As mentioned earlier, water and heating fees are included in the Housing Cooperative monthly charge. Only electricity is not included that fee since the electricity agreement needs to be made with the local power company.
For all the utilities you are billed a fixed amount every month, then once or twice a year there will be precise calculation of your consumption and you will be compensated or charged accordingly.

RENTAL ISSUES:

Who is letting my Chalets apartment while I am away?
You can sign the rental agreement with the service provider, which obliges you to make the apartment available for rent 200 - 250 days per annum and determine the time for your personal use. Within the remaining days, you can flexibly choose any time for your own holiday at the Chalets apartment.
Rest all the relevant matters including marketing, renting out and distribution of rental income will be handled by the service provider in exchange for a commission (25 - 30%).

Is signing the rental agreement compulsory?
No, you can keep the Chalets apartment totally for your own use. The rental agreement continues on a yearly basis unless you decide to terminate it.

How do I receive the rental income?
To give you the convenience of not worrying about the distribution of rental and related financial matters we devised a system called rental pool. Please visit Rental Pool System page for more information.
As soon as you sign the rental agreement with the service provider and determine the time that you need the Chalets for your own holiday, you are the member of rental pool. However possessing the interior package is necessary for joining the pool. 

How often do I receive the rental income?
Normally, payments are made three times a year (every 4 months), however depending on the project the payments timing may be different. 

What is the expected rate of occupancy in a year?
In 2006, the Ylläs Chalets apartment complex had average lease occupancy rate of 40%.

How much rental income can I expect?
The Chalets concept is designed so that the rental income would cover the maintenance costs as well as repayment of housing cooperative loan and its interest and even yield profit.
For more information please visit example of rental income page. However, due to nature of leisure and tourism industry, the level of future income can not be guaranteed.

Who is determining the rental price?
In order to maximize your rental income and improve profitability, the service provider sets the price level for different seasons, since they have the expertise in tourism industry and know the market developments. 

Who is responsible for loss or damage to my property during rental period?
According to Finnish Leasing Act, the service provider is responsible for compensation of loss or damage to your property during the rental period. However, it is recommended that you obtain insurance for your property. 

FINANCING:

What kind of financing options are available?
You can choose to purchase the Chalets apartment totally financed by your own capital or take the 60% Housing Cooperative Euro loan with 21-year maturity. 

What taxes do I have to pay?
When purchasing the property there is the 1.6% property transfer tax (similar to stamp duty).
There is property tax which is very low and included in the Housing Cooperative monthly charge.
There is also tax on the rental income (capital gains tax), which in Finland is 28%.
Please visit www.vero.fi for more information

Do I receive VAT refund?
You can apply for VAT rebate on the VAT included in the constructions costs, if the property is only used for 100% VAT-liable purpose for ten calendar years.
In other words if you give your leisure home out totally for rent and do not use it yourself for ten years, you can receive VAT refund. However during that time you can rent the property from the service provider and pay the rental fee.
The VAT rebate will be paid to the owner in return for pledge since the start of VAT-liable activity (rental agreement), provided that the owner registers for VAT refund within the first six months of ownership of property.