Take Over the Loans and Reduce Your Monthly Costs in Your Condominium
Voluntary Capital Contribution or Collective Capital Contribution - An Option to Lower Your Monthly Costs
Lower your monthly costs by taking over all or part of the association’s loans through a capital contribution to the housing cooperative.
The reduction is achieved because, as an individual, you can claim a tax deduction of 30 percent on the interest paid on loans.
When purchasing a condominium, the prospective member often borrows money from a bank to cover the purchase price. Many buyers do not realize that the fee to the association largely consists of interest and amortization on the association’s loans. This can amount to several hundred thousand kronor up to millions in the member’s share of the association’s loans. The interest paid through the fee is not deductible, neither for the association nor for the member.
Capital contributions can also be an option for major renovations to avoid raising fees.
Forum takes full responsibility for implementing the capital contribution. We guide you safely through the entire process, providing support for both the board and the members.