Many people are looking for a year-round cottage within a short drive. A log cabin and private beach are often at the top of the list of dreams, but not always:

“For example, Lohja, Pusula and Sammatti are areas with a surprisingly high demand for cottages. In particular, those living in busy urban environments are often looking for a peaceful and secluded getaway,” says Nea Henriksson, Real Estate Agent for OP Koti Uusimaa.

According to her, dry land cabins with a private well and outdoor toilet can cost as little as EUR 50–60,000 in Uusimaa.

“On the other hand, if you want a reasonably new winter-proof cottage, you have to invest hundreds of thousands of euros. Or if you are thinking about building your own cabin, you should be prepared for high work and material costs.” 

The factors affecting the fair price the most are location, the vicinity to a water body and private beach, level of equipment and suitability for year-round use.

“A beautiful location and well-cared for environment are also surprisingly important,” Henriksson adds.

Can buying a cottage also be a good investment?

According to Aapeli Laitinen, Sales Director for OP Uusimaa, it can in the best-case scenario, as long as the location is good and the cottage is kept in good condition.

If you need a loan for buying the cottage, you should contact your bank even if you are still looking for the cottage.

“Spring is the busiest time on the market, which means you should apply for the loan early,” Laitinen says.

You can make the loan application online, and the bank will typically call you on the next day. The bank tells you if they need any further information, and you will agree on whether the actual loan negotiations will be held online, on the telephone or at the office. 

Before buying, you should make a condition inspection. If you apply for second home mortgage, a condition inspection is usually a condition for getting the loan.

Any surface renovations are funded through consumer credit. Renovation loan, which is more affordable than consumer credit, can be granted for large-scale alterations or renovations, such as extension, subsurface drain and HVAC renovations. 

Figures

  • 51 years The average age of second home mortgage customers at OP Uusimaa.
  • 20 years The longest possible loan term for a second home mortgage.
  • EUR 114,000 Average second home mortgage granted by OP Uusimaa for buying a cottage in Uusimaa. Elsewhere in Finland, the average loan amount is EUR 105,000. In addition to the loan, the buyer uses their own savings.
  • 60% The maximum security value of a cottage when taking the loan. The buyer can use, for example, their own apartment or other savings and investments as additional security.
  • 90% Maximum share of mortgage in the sales price.

Source: OP Uusimaa (2022–2023)

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