SATO FlexHome
For your beginnings
If only you could try out an owner-occupied home before buying it. To decorate it, experience it, enjoy it. To see how you fit into the building and the neighbourhood. To have a perfect carefree new beginning. But wait, with SATO FlexHome this is possible!
Get to know your neighbors before deciding to buy
SATO FlexHome is a new form of part ownership where you get access to an urban home of your dreams with a small sales price of part ownership as soon as you've signed the contract. After the part ownership, you can purchase your home in full. You can also sell your share back to SATO and either move out or continue living in your familiar home, renting it from us under a lease agreement.
Such a safe option - if you can't for some reason invest in the home after all, SATO will buy it back
SATO FlexHome is particularly suitable for life's transition periods. Perhaps you have sold your home in a smaller town and would like to move to a city. Or you have saved a small amount for your first owner-occupied home but are not yet willing to commit to a big housing loan. Or perhaps you are unsure about your near future - whether you will stay in this city or might be moving to another one in a couple of years' time.
The very first SATO FlexHome were completed in 2020 and new FlexHomes will be completed near the end of 2022 to Hervantajärvi, Tampere. Currently, no new FlexHomes are under construction.
This is how it works
You get access to a SATO FlexHome by paying 15% of the full purchase price of your new home. During the part ownership, you will pay SATO's part ownership rent, a rent that is below the market level for your home. If your life situation or mind changes during that period, we undertake to buy your share back at the original price, less 1% per each year of residence. After the end of the part-ownership period, you can either buy the remaining 85% of your home or sell your share back to us.
When you purchase your SATO FlexHome in full at the end of the part-ownership period, you will benefit nicely from any increase in its value as the purchase price will be the original price excluding company loans. On the other hand, if you love the apartment but a larger bank loan is still not the thing for you after the part ownership time, you can choose to continue living in your home as a SATO RentHome resident, provided that you have taken care of all of your obligations during your period of residence.
Your saving with the SATO FlexHome is the bigger the more of the 15% initial payment you can cover by yourself.
More info of SATO FlexHome
You get access to a SATO FlexHome by paying 15% of the purchase price of your new home. During the five years of part ownership, you will pay SATO's part ownership rent, a rent that is below the market level for your home. Please notice, that the five year part ownership period is always calculated from the original date of completion of the apartment. If your life situation or mind changes during that period, we undertake to buy your share back at the original price, less 1% per each year of residence. After the end of the part-ownership period, you can either buy the remaining 85% of your home or sell your share back to us.
When you purchase your SATO FlexHome in full at the end of the part-ownership period, you will benefit nicely from any increase in its value as the purhase price will be the original price excluding company loans. On the other hand, if you love the apartment but a larger bank loan is still not the thing for you after the five-year period, you can choose to continue living in your home as a SATO RentHome resident, provided that you have taken care of all of your obligations during your period of residence.
Your saving with the SATO FlexHome is the bigger the more of the 15% initial payment you can cover by yourself.
Examples
Please take a look at our Finnish site for example calculations by changing the language. If you have any questions, don't hesitate to contact our Customer Service, p. 020 334 443, asiakaspalvelu@sato.fi. Due to the coronavirus ourbreak the lines might be busy, and therefore we recommend using the email, or if you are our resident, OmaSATO messaging.
Huomioithan, että esimerkit ovat kuvitteellisista kodeista ja ne on laskettu ajatellen ensimmäistä, vuonna 2020 valmistunutta SATO JoustoKoti -taloa Helsingin Talissa.
Esimerkkiasunto, yksiö 39 m2, velaton kauppahinta 250 000 €
- Ennen muuttoa: 15% osaomistusosuus 37 500 €
- Viiden asumisvuoden jälkeen: 85% loppuosuuden lunastaminen 212 500 €, yhteenlaskettu hinta pysyy siis alkuperäisenä, 250 000 €
- Elämäntilanne muuttuu ja haluatkin muuttaa pois 1,5 asumisvuoden jälkeen: 15%:n osaomistusosuudesta 1% kulumisvähennys per vuosi eli 18 kuukaudelta 563 €, SATO maksaa sinulle lopullisen takaisinlunastushinnan 36 937 €
Why is it a good idea for me to buy a SATO FlexHome apartment?
A FlexHome provides you with the opportunity for home ownership with a low threshold. As its name implies, a FlexHome involves a five-year period during which you can flexibly consider your housing type choice depending on any changes in your life situation. For example: Right now it may be hard for you to know whether or not you'll get a loan from the bank in five years' time to buy an apartment in full, but that's what you're aiming at. A FlexHome enables you to make your dream of owning a home a reality in five years' time or to continue renting your home.
- First you buy 15% of the apartment
- In five years' time you will be able to change your mind and give up your part ownership
- SATO undertakes to buy back your share, so there's no risk relating to selling your part-ownership on to someone else
In five years' time you'll make your choice
- Buying your apartment in full OR
- Giving up part ownership and possibly staying in the home but from then on renting it from SATO
What's SATO's aim with this concept?
SATO's strategic aim is to diversify housing solutions. The concept is also of value as it enables SATO to strengthen its housing provision and expand its customer base, which also strengthens the SATO brand. Municipalities also often hope to see a diverse spread of possession types in housing.
How will a SATO FlexHome help you save money?
If the first ownership share of 15% of the total price of the apartment is your own money, during the part-ownership period you'll pay a part-ownership rent consisting of maintenance costs and?common capital expenditures as well as SATO's share of the rent. This part-ownership rent is lower than the market rent.
On the other hand, if you take out a loan for the first ownership share, the rent of the SATO FlexHome is calculated so that, together with the repayments of the loan taken out for the 10% share under normal loan terms and conditions (at the interest rate level of year-end 2019), your monthly housing costs will be close to the market rent level. At the same time?, by making the loan repayments, you'll be saving your own share for yourself and therefore accumulating your personal wealth.
How does a FlexHome differ from normal owner-occupied or rental housing?
When buying an owner-occupied home, you need the entire purchase price of the home right away. You also have to make the decision on whether or not to buy right away, without any ”trial period". A SATO FlexHome enables you to get access to a home with just 15% of the purchase price and, in addition, you'll have 5 years to consider whether or not you want to buy that home in full.
How does a SATO FlexHome differ from other part-ownership models?
With a FlexHome the part-ownership period is shorter than usual, totalling 5 years instead of the more common 10-15 years of part ownership. This means you'll be able to gain full ownership more quickly.
What kind of an agreement will I sign with SATO?
You will enter into three agreements with us: The contract of sale is signed when you buy the first ownership share; the shareholder agreement covers the responsibilities and obligations of yourself, the housing company and SATO; and you will enter into a lease agreement with SATO for the part-ownership period, covering the responsibilities and obligations of the lessee and the lessor.
How will I know how much the apartment will cost in five years' time?
You and SATO will enter into an agreement confirming that the final amount to be paid in five years' time?is 85% of the apartment's original?price excluding company loans. The apartment's value may increase depending on factors such as location and?market situation, and you'll benefit from any increase in value.
Will I have to apply for a bank loan after the five-year period of residence?
If you want to buy the remaining 85% of the apartment, you'll be responsible for financing for the amount. At the end of the part-ownership period, the housing company may decide to keep the original company loan (70% of the purchase price) with the company or possibly decide to organise a new loan for the company. In such a case you'll be able to utilise the company loan share and get a personal loan for the remaining 15%. Another alternative is for you to give up your company loan share and cover the entire amount with a bank loan and your savings.
What will happen if I won't be able to get a loan from a bank?
If you won't get a loan, SATO will buy back your first ownerhip share. SATO/ buy-back price = The price agreed on when the apartment was completed - 1% wear-and-tear deduction/year. The wear-and-tear deduction is calculated for the 15% share and determined at the monthly level (for example, 6 months -> (1/12x6 )x0.01). In that case you'll be able to continue living in the apartment as a SATO tenant under a lease agreement or move out if you wish. You'll be able stay in the apartment as a tenant if you have taken care of your rent payments as agreed.
What if my life situation changes and I won't be able to pay the part-ownership rent on time?
If you encounter payment difficulties, we'll negotiate with you in the same way as in an ordinary tenancy relationship. If your rent payments fall overdue, SATO will have the right to buy back your ownership share minus the wear-and-tear deduction of -1%/year of residence.
What does the part-ownership rent consist of Will SATO raise the FlexHome part-ownership rent every year?
The part-ownership rent?consists of three components:
- Maintenance costs: The maintenance charge covers the normal property maintenance costs. The maintenance charge is updated annually on the basis of the housing company's budget and confirmed by the shareholders' meeting.
- Common capital expenditures: The charge for common capital expenditures consists of the housing company's loan interests (no repayments in five years).
- SATO's share: SATO's share of the rent covers the costs arising from administration, rent monitoring and risk. SATO's share is reviewed annually on the basis of the cost-of-living index.
What does the 'market rent' mentioned in the material mean?
The market rent is estimated by comparing the rent development of apartments, their microlocations and rents within the same area with each other. The part-ownership rent of a SATO FlexHome is lower than the estimated market rent.
When will I be able to sell the apartment?
You'll be able to sell the apartment once you've bought the remaining 85% of the shares. This means the earliest possible time is in five years from the date on which you bought the first ownership share.
Will I be able to buy the entire apartment earlier than in five years' time?
You will only be able to buy the entire apartment in five years' time.
Who will benefit from the possible increase in value?
Whoever owns the apartment after the five-year part-ownership period will benefit from the increase in value as that owner will have the opportunity to sell the apartment.
What if apartment market prices fall?
The price of a SATO FlexHome is determined before the beginning of the part-ownership period. This means that in five years' time the purchase price of the remaining 85% is the price agreed upon before the beginning of the part-ownership period. If market prices fall over the five-year period and you decide that buying the FlexHome in full is not a sensible option for you, SATO will be obliged to buy the apartment back at the price originally agreed with you (-1% wear-and-tear deduction/year). No-one is capable of forecasting the future of market prices of apartments, but current forecasts are pointing to a continued positive price trend.
Will I be able to sell my part-ownership to a relative/friend/someone else?
The 15% part-ownership share can only be bought back by SATO. At the end of the part-ownership period, provided that you have bought the remaining 85%, you'll be able to sell the apartment freely in to market to anyone.