Is the association healthy?
The association's debt per square metre is the single most important figure. High debt becomes your fee hikes when rates rise. Work it out here.
the association's debt per square metre
In the annual report, often as total area in m²
One figure is not the whole picture. Read it together with the fee, the saving and the maintenance plan. Low debt can hide deferred upkeep.
How we calculate
Debt per m² is the association's total loans divided by its total living area. It tells you how heavily geared the association is, regardless of size. An association with 30 million in loans and 4 000 m² is at 7 500 kr/m², about the average.
Why it drives your fee
The association's loans carry interest just like your own mortgage. When rates rise the association's costs go up, and sooner or later that lands on members as higher monthly fees. High debt per m² means greater sensitivity to rate rises.
The rule of thumb, and its limits
Under 5 000 kr/m² counts as low, 5 000–10 000 as normal, 10 000–15 000 as high and over 15 000 as very high. But new builds sit higher for natural reasons, and one figure does not decide everything. Read the debt together with the fee, the saving and the maintenance plan.
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