Nyproduktion

Newly built, and often a brand new co-op

Nyproduktion means newly built homes. If you buy a bostadsrätt (a co-op apartment) in a new development, the BRF (the housing co-operative that owns the building) is usually just formed, and it typically carries a higher debt per square metre in its first years than older co-ops do. The reason is simple: the construction loans are new and the co-op has not yet had time to pay them down.

The number to look at: debt per square metre

Skuldsättning per kvadratmeter (debt per square metre) is a key figure that has to be shown in the co-op’s economic plan, and you will also find it in the annual report. As a rule of thumb, under about 6 000 kr/kvm is seen as good and over 10 000 kr/kvm as worth a closer look. In nyproduktion, though, a high figure is not automatically a warning sign. New co-ops often sit higher than established ones simply because the loans are fresh.

What you should do

Read how the co-op plans to pay down its loans and how interest rates will affect the årsavgift (the monthly fee you pay to the co-op) going forward. A high debt per square metre is manageable if the plan is clear and the fee holds up. What you want to avoid is high debt combined with a fee that has been set low to look attractive at sale, and that may then be raised later.