How do we invest?

Svenska Bostadsfonden invests in Swedish residential rental properties, preferably in small and medium sized municipalities with a population growth and good commuting possibilities. The fund has a six year investment period and a minimum investment of 10 000 Euros (5000 for the UNIT).

Investment strategy

Svenska Bostadsfonden is constantly evaluating residential rental properties in municipalities with a diversified business life and preferably a slightly growing population in recent years. The fund seeks to avoid cities where one or a few employers dominate the market.

Return target

The return is created by the rental revenue from our tenants after the costs for operation and maintenance have been deducted. This means that as long as our apartments are rented we will generate a surplus that can be used for annual dividends. More than 40 % of Sweden's municipalities have a housing shortage, which means that the forecast for the future looks very promising. The fund only invests in municipalities where growth and good commuting possibilities are found combined with a diversified business life. Our target is a 4 % annual return after fees have been deducted.

Long-term appreciation

Historically the value of residential rental properties in good condition has developed on par with inflation or better. The Swedish rent control system helps to ensure a stable development over time even during periods of recession. By using a relatively conservative loan to value ratio of 65 - 75 % a leverage is also created. The total expected capital appreciation is 40 % during the investment period.