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As a foreigner here in Sweden I've heard about this mystical bubble which will burst sometime soon causing morgage rates to skyrocket. If I was going to buy som

As a foreigner here in Sweden I've heard about this mystical bubble which will burst sometime soon causing morgage rates to skyrocket. If I was going to buy something, say in North Stockholm, how long would you recommend waiting?

ghostbrainalpha 9y ago
That's the wrong way to look at it. If you wait for the bubble to pop, it may never happen. Or it could happen, but only after prices doubles, and the "crash" may only take the price back to where it is now. Buy now IF you can afford to hold onto the property through a crash. If you expect to need to sell this property in the next 2-5 years, do not buy it.
styren 9y ago
I recently sold my appartment in central Stockholm, I am reinvesting my money in stocks and renting for 1-2 years before hopefully entering a more healthy housing market. Of course it is all a gamble, but most people I talk to recommend waiting +1,5 years, if you can.
- zeeed 9y ago
  Couldn’t agree more. The current market situation here looks downright bizarre at times, I’m having trouble seeing how any substantial investment in this makes sense. Who did you talk to for advice in Stockholm?
mrmekon 9y ago
If bubbles were predictable, they wouldn't be bubbles. Everyone claims they're in a housing bubble when prices rise for years on end. They often aren't. Even when they are, literally nobody knows when they will break, or by how much. Here's an article predicting the Stockholm "bubble" would pop in 2009: https://arbetet.se/2009/06/26/har-alla-glomt-90-talets-bostadsbubbla/ https://arbetet.se/2009/06/26/har-alla-glomt-90-talets-bosta... And here's one predicting it in 2003: https://www.svd.se/prispress-okar-risk-for-bostadsbubbla https://www.svd.se/prispress-okar-risk-for-bostadsbubbla And here's what it did: https://www.globalpropertyguide.com/template/assets/img/sweden-average-house-prices-4.gif https://www.globalpropertyguide.com/template/assets/img/swed... So, if you followed internet advice, you would have pulled out of the market 15 years ago and still be waiting.

ghostbrainalpha 9y ago

That's the wrong way to look at it. If you wait for the bubble to pop, it may never happen. Or it could happen, but only after prices doubles, and the "crash" may only take the price back to where it is now. Buy now IF you can afford to hold onto the property through a crash. If you expect to need to sell this property in the next 2-5 years, do not buy it.

styren 9y ago

I recently sold my appartment in central Stockholm, I am reinvesting my money in stocks and renting for 1-2 years before hopefully entering a more healthy housing market. Of course it is all a gamble, but most people I talk to recommend waiting +1,5 years, if you can.

zeeed 9y ago
Couldn’t agree more. The current market situation here looks downright bizarre at times, I’m having trouble seeing how any substantial investment in this makes sense. Who did you talk to for advice in Stockholm?

mrmekon 9y ago

If bubbles were predictable, they wouldn't be bubbles. Everyone claims they're in a housing bubble when prices rise for years on end. They often aren't. Even when they are, literally nobody knows when they will break, or by how much. Here's an article predicting the Stockholm "bubble" would pop in 2009: https://arbetet.se/2009/06/26/har-alla-glomt-90-talets-bostadsbubbla/ https://arbetet.se/2009/06/26/har-alla-glomt-90-talets-bosta... And here's one predicting it in 2003: https://www.svd.se/prispress-okar-risk-for-bostadsbubbla https://www.svd.se/prispress-okar-risk-for-bostadsbubbla And here's what it did: https://www.globalpropertyguide.com/template/assets/img/sweden-average-house-prices-4.gif https://www.globalpropertyguide.com/template/assets/img/swed... So, if you followed internet advice, you would have pulled out of the market 15 years ago and still be waiting.