The combination of removing the wealth tax and the introduction of a 30% rebate on all interest costs for individuals have really combined to clusterfuck the Swedish housing market.
Now, the interest rebate seems politically impossible to touch, even long term and through minor transitioning. Home ownership is so important to the economy and affects so many voters, that the property owning class always must be looked after.
People have been talking about the bubble bursting for years now, but it's only in the past year or so that the decline truly has been expected. Only a few weeks ago, there was an article in a major paper about a couple who quinnied about not being able to sell their house with the expected 1000% profit (over 30+ years). How ever would they manage, once they'd sold the house, bought an apartment, and didn't have the cool million SEK to splurge on whatever people in their 70s enjoy?
Now, the interest rebate seems politically impossible to touch, even long term and through minor transitioning. Home ownership is so important to the economy and affects so many voters, that the property owning class always must be looked after.
People have been talking about the bubble bursting for years now, but it's only in the past year or so that the decline truly has been expected. Only a few weeks ago, there was an article in a major paper about a couple who quinnied about not being able to sell their house with the expected 1000% profit (over 30+ years). How ever would they manage, once they'd sold the house, bought an apartment, and didn't have the cool million SEK to splurge on whatever people in their 70s enjoy?