Investment Property in Helsinki

Invest in Real Estate in Helsinki

Investment Property in Helsinki
Investment Property in Helsinki

Helsinki property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Helsinki .

Search Map of Helsinki Investment Real Estate

Helsinki ( HEL-sink-ee or hel-SINK-ee; Finnish: [ˈhelsiŋki] (listen); Swedish: Helsingfors, Finland Swedish: [helsiŋˈforːs] (listen)) is the capital, primate, and most populous city of Finland. Located on the shore of the Gulf of Finland, it is the seat of the region of Uusimaa in southern Finland, and has a population of 658,864. The city’s urban area has a population of 1,268,296, making it by far the most populous urban area in Finland as well as the country’s most important center for politics, education, finance, culture, and research; while Tampere in the Pirkanmaa region, located 179 kilometres (111 mi) to the north from Helsinki, is the second largest urban area in Finland. Helsinki is located 80 kilometres (50 mi) north of Tallinn, Estonia, 400 km (250 mi) east of Stockholm, Sweden, and 300 km (190 mi) west of Saint Petersburg, Russia. It has close historical ties with these three cities.

Together with the cities of Espoo, Vantaa, and Kauniainen (and surrounding commuter towns, including the eastern neighboring municipality of Sipoo), Helsinki forms the Greater Helsinki metropolitan area, which has a population of over 1.5 million. Often considered to be Finland’s only metropolis, it is the world’s northernmost metro area with over one million people as well as the northernmost capital of an EU member state. After Copenhagen and Stockholm, Helsinki is the third largest municipality in the Nordic countries. Finnish and Swedish are both official languages. The city is served by the international Helsinki Airport, located in the neighboring city of Vantaa, with frequent service to many destinations in Europe and Asia.

Helsinki was the World Design Capital for 2012, the venue for the 1952 Summer Olympics, and the host of the 52nd Eurovision Song Contest in 2007.

Helsinki has one of the world’s highest standards of urban living. In 2011, the British magazine Monocle ranked Helsinki the world’s most liveable city in its liveable cities index. In the Economist Intelligence Unit’s 2016 liveability survey, Helsinki was ranked ninth among 140 cities. In July 2021, the American magazine Time ranked Helsinki one of the greatest places in the world in 2021 as a city that “can grow into a sprouting cultural nest in the future,” and which has already been known in the world as an environmental pioneer. An international Cities of Choice survey conducted in 2021 by the consulting firm Boston Consulting Group and the BCG Henderson Institute raised Helsinki the third best city in the world to live, with London and New York City ranking the first and the second. Also, together with Rovaniemi in the Lapland region, Helsinki is one of Finland’s most significant tourist cities in terms of foreign tourism. Due to the large number of sea passengers per year, Helsinki is classed as a Large-Port City.

The financial stability of Helsinki has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Helsinki

 

Renting out your Helsinki buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Helsinki are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Helsinki and be prepared to change your initial outlook.
  • Thoroughly research the Helsinki location with a special emphasis on fringe areas outside the main Helsinki metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Helsinki.
  • Ensure that your target investment property in Helsinki appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Helsinki provides the secure knowledge that your money is working harder than it would in a local Helsinki bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Helsinki, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Helsinki property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Helsinki

Flipping property in Helsinki

 

Flipping property is when we advise clients to buy a Helsinki property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Helsinki market has a time to react to the renovation.

 

The Flipping Strategy in Helsinki

 

Investment property flipping in Helsinki is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Helsinki real estate investments are sometimes referred to by professionals as ‘distressed’ Helsinki real estate.

 

What is distressed Helsinki property:

 

  • Helsinki property in need of renovation
  • Helsinki real estate with a change of purpose and use
  • Oversold Helsinki property
  • Bank repossessions in Helsinki

Put simply, long term investors in Helsinki purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Helsinki investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Helsinki property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Helsinki use a minimum profit value of 22% when looking at potential Helsinki projects.

 

The reason for this is because there are lots that can go wrong in Helsinki property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Helsinki

 

Property Secured Investments is a Private Equity fund that invests in Helsinki and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Helsinki

For luxury property investors hoping to add a superb property in Helsinki to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Helsinki, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Helsinki should be entrusted to only the highest-quality agency.

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