OSLO – For many young Norwegians, the dream of homeownership in the capital feels increasingly out of reach. A combination of high interest rates, steep per-square-meter prices, and stringent equity requirements presents a formidable barrier to entry. However, , Katinka Louise Roux Connor (23) and Susanna Salole Skjerven (21) secured a three-room apartment in Oslo’s Grønland neighborhood. Their success hinged on timing their purchase during a quiet period in the market and capitalizing on a detail that deterred other potential buyers.
“We were very lucky to receive significant help from our parents, and we were fortunate to find a property with a unique circumstance,” Connor told Nettavisen.
Connor, originally from Sandefjord, and Skjerven, from Kjelsås, are now immersed in painting and finishing touches on their first jointly-owned apartment.
Strategic Timing in a Slow Market
The two friends were operating under a time constraint, aiming to pre-empt the anticipated rise in housing prices in the new year. They sought to close the deal before .
“It was a bit of a rush, as the housing market was expected to increase in January, so we wanted to buy before December was over. Everywhere we went, sellers were either struggling to sell or accepting offers well above the asking price,” Skjerven explained.
After just three or four viewings, they made an offer in mid-December. While many prospective buyers take a holiday break from house hunting, Connor and Skjerven remained actively engaged.
“It’s more common to buy either at the beginning or end of summer. So, there weren’t as many properties available as usual,” Connor pointed out.
The Fear Factor of Common Debt
The apartment, with a total price of 5.9 million Norwegian kroner, was purchased for 5.4 million kroner, but carried a common debt (fellesgjeld) of approximately half a million kroner.
It was this common debt that allowed them to secure the property at the asking price, avoiding a bidding war. The presence of common debt often spooks potential buyers due to the potentially high monthly expenses associated with interest and principal payments, particularly on a tight budget. If the original repayment plan set by the housing association had been followed, monthly costs would have soared.
“It would have become extremely expensive on a monthly basis. It could have increased our rent by a third, perhaps up to 20,000 kroner per month. We simply couldn’t afford that,” Connor explained.
Exploiting an “Unknown” Opportunity
The solution lay in carefully reviewing the housing association’s bylaws and implementing a strategy rarely considered by first-time homebuyers. With assistance from Connor’s father, they discovered the possibility of accelerating the repayment of the common debt through an IN scheme (Individuell nedbetaling av fellesgjeld – Individual Repayment of Common Debt).
“Many people are unaware that you can pay down the common debt twice a year. So, we simply incorporated it into the total price of the purchase and included it in our loan,” Connor said.
By including the common debt in their private mortgage, they gained control over monthly expenses and secured more favorable interest rates than those offered with the common debt. They plan to fully repay the common debt in , as part of their overall loan repayment schedule.
This maneuver made the financial calculations work, allowing them to avoid the high monthly housing association fees that deterred other interested parties.
“It’s quite amusing, really, that it scared others away, while we thought, ‘You can take this on’,” Skjerven added.
A Bit Stressful
Although the plan was sound, the emotional experience of the purchase differed for the two friends. While Connor benefited from her father’s close monitoring of the housing market and his reassuring presence, Skjerven felt stressed.
“I was a little stressed. It felt scary because it happened so quickly, and I was very unsure if I actually had the money for it,” Skjerven admitted.
Connor, however, never doubted the decision. “I wasn’t afraid. For me, buying an apartment is not scary at all, but I think that’s because I’m very fortunate to have a strong safety net,” she said.
Winning the Lottery
Neither of the young women hides the fact that they were privileged to receive financial assistance from their families, but they also emphasize that buying a home alone is almost impossible in today’s market. Skjerven works full-time as a qualified kindergarten teacher and has been saving through a BSU (Housing Savings Account) since she was 17. Connor is a student and runs a sole proprietorship.
“I wouldn’t have gotten a loan without a guarantor, as I have a sole proprietorship and am a student. And that just doesn’t work,” Connor said.
Skjerven’s situation was the reverse: she had the income but lacked a guarantor. The solution was a joint effort where they filled each other’s gaps. Skjerven’s brother, who is also Connor’s boyfriend, also contributed by purchasing a smaller share.
The ownership split ended up at approximately 50 percent for Connor, 40 percent for Skjerven, and 10 percent for the brother, based on each individual’s ability to service the loan.
The result is that they now own a three-room apartment with a balcony, included heating and a newly renovated kitchen, instead of living cramped separately.
“Now we can actually live in this apartment for quite a long time. It’s easy to rent out if we need to,” Connor said, viewing the purchase as a long-term investment.
“We’ve just been incredibly lucky. It feels like we’ve won the lottery, without actually winning the lottery,” she concluded.
