ASO - Asumisoikeusasunto
Not many people are aware that in Finland, there is a system where you can purchase the right to live in a rental apartment, known as an ASO apartment. Today, we'll explain what this type of housing is and how it works.
Across Finland, there are many homes with the right to residency, including apartment buildings, townhouses, and detached houses. ASO housing is an intermediate option between renting and buying. By paying 15% of the apartment's market price as a residency right fee, you gain control over a home that you can manage as your own. You can live in an ASO home for as long as you like. If your life circumstances change, you can always resell it and buy a more suitable ASO apartment or even your own property. You can also leave the ASO apartment as an inheritance.
You can finance the ASO fee with a mortgage (at a mortgage rate rather than a loan rate), which is easier because the amount is small and can positively impact future loan decisions, as banks consider your credit history when making lending decisions.
In addition to the initial payment, you also pay a monthly usage fee, which is lower than the rent for a regular rental apartment. For example, ASO apartments are, on average, about 5-8% cheaper in the Helsinki metropolitan area and about 8-14% cheaper in Turku.
If you decide to give up your ASO apartment, you will get back your initial payment, adjusted for the construction cost index and price growth over the years you lived in the apartment.
Who is this type of housing suitable for? Often, it serves as the first "owned" home for young families, as it allows them to save up for a down payment on a fully owned home. Even if you use a scheme involving a mortgage payment plus a monthly usage fee, an ASO apartment will cost you roughly the same per month as a rental. However, when you move out, you get your payment back, which you can use as you wish.
This type of housing is ideal for those who want to try out homeownership but aren't ready for a large mortgage and want to save up for their own property.
You can finance the ASO fee with a mortgage (at a mortgage rate rather than a loan rate), which is easier because the amount is small and can positively impact future loan decisions, as banks consider your credit history when making lending decisions.
In addition to the initial payment, you also pay a monthly usage fee, which is lower than the rent for a regular rental apartment. For example, ASO apartments are, on average, about 5-8% cheaper in the Helsinki metropolitan area and about 8-14% cheaper in Turku.
If you decide to give up your ASO apartment, you will get back your initial payment, adjusted for the construction cost index and price growth over the years you lived in the apartment.
Who is this type of housing suitable for? Often, it serves as the first "owned" home for young families, as it allows them to save up for a down payment on a fully owned home. Even if you use a scheme involving a mortgage payment plus a monthly usage fee, an ASO apartment will cost you roughly the same per month as a rental. However, when you move out, you get your payment back, which you can use as you wish.
This type of housing is ideal for those who want to try out homeownership but aren't ready for a large mortgage and want to save up for their own property.
Main rules for ASO apartments:
- ASO apartments cannot be purchased outright; they will always remain ASO properties.
- You cannot be evicted from an ASO apartment.
- You are allowed to make renovations, which must be approved by the management company. A well-done renovation can increase the value of your apartment.
- The management company will handle the resale of your share in the ASO apartment, and you will receive the payment after a buyer is found for your share (usually within approximately 3 months).
- The management company is also responsible for maintaining the common areas of the property.
- ASO apartments are listed separately from rental apartments on real estate and rental websites. This means you have more options to choose from, and since ASO apartments are considered permanent housing, you are more likely to find options like townhouses, which are rare in regular rentals.
