Buying new-build: the risks of a brand-new bostadsrätt association

The biggest risk in buying a new-build is not that the association goes bankrupt, which is rare. The real risk is an optimistically set monthly fee that later has to rise, built on top of high debt in the association. New-build associations often take over the construction loan as the association’s own loan (föreningslån), and they end up with high debt per square metre, which makes the fee sensitive to interest rate rises. The good news: everything you need to judge the risk is in the economic plan (ekonomisk plan), and you can read it in about fifteen minutes.

The economic plan is your most important document

An association may not sell a single bostadsrätt (a unit in a Swedish housing cooperative) until an economic plan has been drawn up, reviewed and certified by two independent certifiers, and registered with Bolagsverket (the Swedish Companies Registration Office). The plan must rest on reliable foundations. That means there is a reviewed document to lean on before you sign, and you have every right to ask for it.

The plan reports a set of mandatory key figures per square metre of living area. The four that decide whether the finances hold up:

Key figure	What it tells you
Debt (loans) per sqm	How sensitive the fee is to interest rates
Annual fee per sqm	What you actually pay in each year
Savings per sqm	Whether the association is setting money aside for future maintenance
Energy cost per sqm	A large and rising item in running costs

Since 1 January 2024 the plan must also include a technical maintenance plan showing the property’s maintenance and reinvestment needs over the next 50 years. It is component-based, and its whole purpose is to make sure fewer financially unsustainable associations are formed. Use it: if savings per sqm look thin compared with what the maintenance plan points to, that is an early signal of future fee rises.

Debt per square metre: where does your association sit?

This is the number to look at first. As a rule of thumb, debt of 5 000 kr/sqm or less is low, over 10 000 kr/sqm is high and over 15 000 kr/sqm is very high. New-build associations often sit in the higher range, usually between 10 000 and 15 000 kr/sqm, because the construction loan gets converted into the association’s own loan.

High debt is not automatically a dealbreaker, but it does mean a large share of your fee goes to interest. If rates rise, the fee may have to follow.

Worked example: how interest hits the fee

Say you are looking at a 65 sqm flat in an association with debt of 13 000 kr/sqm.

• Your share of the association’s loans: 65 x 13 000 = 845 000 kr
• At 3 percent interest: roughly 25 000 kr per year, around 2 100 kr/month in interest alone
• If the rate rises to 5 percent: roughly 42 000 kr per year, around 3 500 kr/month

The difference of 1 400 kr/month is money the association has to recover somewhere, usually through a fee increase. So always compare debt per sqm against what you would pay in an older, lightly indebted association before you decide.

Why the fee can be set too low at the start

An optimistic economic plan can set the fee low during the first few years, sometimes with introductory fee discounts or with low interest assumptions. It looks good in the brochure, but once full interest and amortisation come through, the fee may need to rise. So check which interest assumptions the plan rests on and compare them with today’s level. Put the plan’s fee per sqm next to savings per sqm: a low fee combined with thin savings is the classic warning sign.

The deposit and the preliminary agreement: your money is protected

Many buyers worry about what happens to their deposit if the build collapses. The protection is stronger than people think. An association may only accept an advance payment from someone who has signed a preliminary agreement (förhandsavtal), and only if Bolagsverket has granted permission. Permission requires a reviewed cost estimate and that the association has lodged adequate security with Bolagsverket for repayment. On top of that, the advance may not exceed the estimated insats (the buyer’s capital contribution).

The preliminary agreement is binding on both parties, but the law gives you a way out in three cases. After giving notice, you may withdraw immediately if:

• the unit is not made available within a reasonable time after the estimated date, through no fault of your own (construction delay)
• the fees turn out to be significantly higher than stated in the agreement
• the home differs substantially from what was agreed

That is concrete protection against exactly the scenarios people worry about most: a long delay, and a fee that suddenly comes in much higher than promised.

Cash deposit and amortisation in 2026

From 1 April 2026 the mortgage cap when buying a new home is 90 percent of market value, so the cash deposit is at least 10 percent. The tighter amortisation requirement of an extra 1 percent on large loans is removed. The base rules stay: you amortise at least 2 percent per year with borrowing above 70 percent of the home’s value, and at least 1 percent between 50 and 70 percent.

Your checklist before you sign

• Ask for the economic plan and find debt per sqm, annual fee per sqm, savings per sqm and energy cost per sqm
• Read the 50-year maintenance plan and compare it against the savings
• Check what interest rate the fee is calculated on, and whether there is an introductory discount
• Confirm there is a certified cost estimate and that Bolagsverket has granted permission for advance payments
• Run the numbers on your fee at both today’s rate and a higher one