Key Differences Between Right-of-Occupancy and Ownership Apartments

Understanding Right-of-Occupancy

Right-of-occupancy housing is a unique form of living arrangement that offers a middle ground between renting and owning. In Finland, this system allows you to have a long-term right to live in an apartment without actually owning it. To secure a right-of-occupancy apartment, you must obtain a queue number from the Housing Finance and Development Centre of Finland (ARA). Once you have your number, you can search through our housing application for suitable apartments and submit an application. To be eligible for a right-of-occupancy apartment, you must be of legal age and not own a home or have the assets to acquire one. Those over 55 years old are exempt from these asset limits. Importantly, your income does not affect your eligibility for a right-of-occupancy apartment. If two applicants who meet the criteria are interested in the same apartment, the one with the lower queue number will be offered the apartment, provided all other conditions are met.

Ownership Apartments: A Traditional Approach

Ownership apartments, on the other hand, involve purchasing the property outright. As an owner, you have complete control over your apartment, subject to the rules of the housing cooperative and local laws. Ownership gives you the freedom to renovate, rent out, or sell your apartment as you see fit. It’s a long-term investment that can appreciate over time, offering potential financial benefits. When you own an apartment, you are responsible for all maintenance and repair costs, as well as property taxes and any mortgage payments. The initial cost of purchasing an ownership apartment is typically higher than the payment required to secure a right-of-occupancy, as it involves a down payment and possibly a loan to cover the full purchase price.

Financial Commitment and Flexibility

The financial commitment involved in right-of-occupancy and ownership apartments is one of the most significant differences between the two. For a right-of-occupancy apartment, you pay a right-of-occupancy fee, which is usually around 15% of the apartment’s initial construction cost. Additionally, you pay a monthly maintenance fee similar to rent, which covers the upkeep of the property and communal areas. With ownership apartments, the financial commitment is much greater, as you’re buying the property. This involves a down payment, potential mortgage payments, and other costs associated with ownership, such as home insurance and renovation expenses. However, as an owner, you also have the opportunity to build equity in your property, which can be financially advantageous in the long run.

Long-Term Security and Rights

Right-of-occupancy offers long-term housing security without the financial burden of ownership. You can live in the apartment indefinitely, as long as you follow the terms of the agreement and pay your monthly fees. However, you do not have the same rights as an owner to make significant changes to the property or benefit from its sale. Ownership apartments provide a sense of permanence and the legal right to make decisions about your property. As an owner, you can benefit from the sale of your apartment, pass it on to heirs, or leverage it as collateral for loans. This level of control and potential for financial gain is a compelling reason many choose to buy rather than opt for right-of-occupancy.

Choosing What’s Right for You

Deciding between a right-of-occupancy apartment and an ownership apartment depends on your personal circumstances, financial situation, and long-term goals. Right-of-occupancy can be an excellent choice for those seeking stability without the responsibilities of ownership. It’s also a good option if you’re not ready to commit to a mortgage or if you prefer to keep your savings invested elsewhere. Ownership is ideal for those looking to invest in their future, have the financial means to purchase property, and want the freedom to customize their living space. It’s a significant commitment, but it comes with the perks of property appreciation and the ability to fully control your living environment. If you’re considering a right-of-occupancy apartment, we at are here to guide you through the process and help you find a home that meets your needs and expectations.We’re here to help guide you through the process, whether you’re interested in right-of-occupancy or ownership apartments. Feel free to reach out to us for more information or to discuss your housing needs. We’re committed to helping you find the perfect place to call home.