Save money on housing or cottage? There are many who wonder. This is my retirement, you’ve probably heard middle-aged people say when they have mentioned a property they have. It can be a home, a cottage, a small farm. And no investment has yielded as much return as real estate in the post-war period.
Housing not only gives us a head start
They have also become the savings boss. If you have a million in the bank, you get both wealth tax and income tax on interest rates. If you put a million kroner in a home, the tax value is the basis for the wealth tax, and it is so low that you may not receive wealth tax at all. This way, wealth and tax shrink when you put it into real estate.
If you sell shares or mutual funds with a profit
You must pay 28 percent tax on the gain. If you sell a property with a profit, you will in most cases avoid tax (see the housing chapter). For example, if you own a cottage, you can sell it tax-free after owning it for five years. You can use the winnings for anything. If you have debts in several places, it is a good idea to get the most expensive debt paid off first. How can we decide which debt is the most expensive? Determine what you pay in interest on different loans – loans with the highest interest rate are the most expensive loans regardless of the size of the loan.
With these tax rules as the backdrop, and with property prices steadily rising, it is therefore no wonder that Norwegians have regarded housing and leisure homes as a savings box, an investment that will provide security for the future.
A girlfriend had always dreamed of a cabin in the mountains. She began to go on impressions, placing a low bid on a simple log cabin in a nice location, but where the plot itself was overgrown. She got the cabin for a reasonable price.