9. The Norwegian Real Estate Market
The housing market is thriving in Norway, which has low unemployment and
abundant natural resources. “It’s definitely a sellers’ market,” according to Leif
Laugen, the chief executive of the Norwegian real estate company Krogsveen,
noting that demand for housing outstrips supply in most areas. Residential prices
have risen 27 percent since 2009.
The robust market has some theorizing that perhaps Norway is in the midst of a
housing bubble, as the United States was before the financial crisis. Mr. Laugen
said it was understandable that outsiders would be “smelling some bubbles there,”
as Norway’s housing prices are high and have been consistently rising.
But unlike other countries, Norway has only 3 percent unemployment, a large
middle class and regular wage increases — 4 to 5 percent yearly, according to Mr.
Laugen. It also has oil and gas reserves.
The Norwegian market is on the rise, partly because the thriving oil and gas
industry is drawing engineers and other professionals, and these new arrivals are
buying houses.
In 2008, the cost of an average home of 100 square meters was $228,000, while
today it will typically go for $313,000. It makes a profit of $85,000 in four and a
half years
10.
11.
12. THE LANGESUND AREA
In the early days, Langesund was one of the most important shipping towns
in Norway.
It is possible to visit the remains of the old Coastal Fortress on Langesundstangen
on the extreme end of the Langesund peninsula. The fort was established during
the war by the Germans and later used by the Norwegian Coastal Artillery and
Home Guard until 1993.
Langesund is one of the most celebrated summer towns in Norway because of the
large number of sunny days. It is also well known for Wrightegaarden, a building
that hosts outdoor concerts every weekend the whole summer.
Artists like Bob Dylan, A-ha, Elton John and Little Richard have played in
Wrightegaarden.
The most famous landmark in Langesund is Langøytangen fyr,
a lighthouse placed on the peak of Langøya, a kilometre-long island right outside
of Langesund. The island group east of the town are called Arøya.
13. One of the most desired areas in Norway, Langesund has many
attractions nearby.
A zoo, railroad museum, downhill ski area, a climbing park, horseback
riding, and large indoor swimming pool and recreation area are all
located within one hour or less from the town.
Langesund is a charming little town with well-kept wooden houses and
good harbors. In and around Langesund there are beautiful coastlines
and shoals that are perfect for swimming and boating. Further inland in
Telemark lies the vast and majestic Hardangervidda, Northern Europe's
largest mountain plateau.
Downhill skiing areas are less than a 2 hour drive from Langesund.
Starting in May 2013 Langesund will be a new port of call for Fjord Line.
The port is currently being upgraded and will be home to Fjord Line's
new ship MS Stavangerfjord. It will provide ferry service between
Langesund and Denmark.
18. SOME QUICK NUMBERS
Estimated Current Market Value of the property and
buildings is in the range of $19 Million.
Total secured debt is approximately $4.8 million
Based on the current local real estate market, we project
that prior to the beginning of construction 80%+ of the
units will be under contract with a 10% deposit in escrow
22. Architect’s rendering of new apartments
All plans and specifications for this phase of the
project are complete and ready for start of
construction
23.
24.
25. SASTEIN ISLAND
Located only a short distance from
Langesund Bad, Sastein would make a
first class addition to the Langesund Bad
resort facility. Acquisition cost is
approximately $2.6 Million, with
estimated upgrades and renovations
including a power and water line from
shore at less than half million dollars.
26. This very pretty and protected private island, has 10 buildings including 4 main houses
and 2 saunas overlooking the sea. A total of 32 people can be accommodated here at
any one time.
Main House: Living room, kitchen, office, veranda, 2 bedrooms upstairs
Pavilion: 4 bedrooms, 8 beds, 1 living room, panorama views, natural beach accessed
by rock steps
Guest House - Bridge House: 2 bedrooms
Maid House: 1 kitchen, 1 attic room, 1 living room
Sauna House: with smaller foyer and veranda
Sauna House: facing mainland
Children's House: 2 bedrooms, 1 x 2 und 1 x 4 beds
Currently, a fountain supplies water to the island, however a pipeline could also be laid
for the same purpose. There is no electricity on the island, cookers and fridges are run
on gas. Due to its geographical location, the island experiences long hours of daylight,
in particular in the summer months. However an electricity cable could be installed.
Included in the purchase is a small nearby island, which is used as a bird conservation
area, however it can also be accessed by the owner.
The island is only 6 minutes by boat from Langesund Bad and would make an ideal
location for wedding parties, and guest outings.
