Investment Property in Kristiansand

Invest in Real Estate in Kristiansand

Investment Property in Kristiansand
Investment Property in Kristiansand

Kristiansand 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 Kristiansand .

Search Map of Kristiansand Investment Real Estate

Kristiansand is a seaside resort city and municipality in Agder county, Norway. The city is the fifth-largest and the municipality the sixth-largest in Norway, with a population of around 112,000 as of January 2020, following the incorporation of the municipalities of Søgne and Songdalen into the greater Kristiansand municipality. In addition to the city itself, Statistics Norway counts four other densely populated areas in the municipality: Skålevik in Flekkerøy with a population of 3,526 in the Vågsbygd borough, Strai with a population of 1,636 in the Grim borough, Justvik with a population of 1,803 in the Lund borough, and Tveit with a population of 1,396 (as of January 2012) in the Oddernes borough. Kristiansand is divided into five boroughs: Grim, which is located northwest in Kristiansand with a population of 15,000; Kvadraturen, which is the centre and downtown Kristiansand with a population of 5,200; Lund, the second largest borough; Søgne, with a population of around 12,000 and incorporated into the municipality of Kristiansand as of January 2020; Oddernes, a borough located in the west; and Vågsbygd, the largest borough with a population of 36,000, located in the southwest.

Kristiansand is connected by four main roads: European Route E18 from Oslo, Aust-Agder and covers the eastern part of Kristiansand; European route E39 from Stavanger, Flekkefjord and the coast towns and villages in Vest-Agder; Norwegian National Road 9 from Evje, Setesdal and Grim; and Norwegian National Road 41 from Telemark, northern Aust-Agder, Birkeland, Tveit and the airport Kristiansand Airport, Kjevik. Varodd Bridge is a large bridge and a part of E18, which stretches over Topdalsfjorden.

Tourism is important in Kristiansand, and the summer season is the most popular for tourists. Kristiansand Zoo and Amusement park is the largest zoo in Norway. It receives over 900,000 visitors every year. Markens Street is the main pedestrian street in downtown Kristiansand. Bystranda is a city beach located in Kvadraturen; Hamresanden beach is the longest beach in Kristiansand. Hamresanden Camping is a popular family camp during the summer season. The city hosts a free weekly concert in downtown Kristiansand in the summertime. Outside the city is the industrial park Sørlandsparken, which includes Sørlandssenteret, Norway’s largest mall.

The financial stability of Kristiansand 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 Kristiansand

 

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

 

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

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Kristiansand and be prepared to change your initial outlook.
  • Thoroughly research the Kristiansand location with a special emphasis on fringe areas outside the main Kristiansand metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Kristiansand.
  • Ensure that your target investment property in Kristiansand 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 Kristiansand provides the secure knowledge that your money is working harder than it would in a local Kristiansand 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 Kristiansand, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kristiansand property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kristiansand

Flipping property in Kristiansand

 

Flipping property is when we advise clients to buy a Kristiansand 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 Kristiansand market has a time to react to the renovation.

 

The Flipping Strategy in Kristiansand

 

Investment property flipping in Kristiansand 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 Kristiansand real estate investments are sometimes referred to by professionals as ‘distressed’ Kristiansand real estate.

 

What is distressed Kristiansand property:

 

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

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

 

Calculate profit that you make from Kristiansand investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kristiansand 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 Kristiansand use a minimum profit value of 22% when looking at potential Kristiansand projects.

 

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

 

Invest through a Fund in Kristiansand

 

Property Secured Investments is a Private Equity fund that invests in Kristiansand 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 Kristiansand

For luxury property investors hoping to add a superb property in Kristiansand 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 Kristiansand, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Kristiansand should be entrusted to only the highest-quality agency.

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