Langasjonas Logo White line02

THE LAKE PROJECT

CAN I CHOOSE WHICH COTTAGE I WANT TO BUY?

Yes, you can choose your own cottage among the 38 cottages in our South and North Village or among the 12 premium cottages F01-F10, N01 and S13. All these are included in the sale. On our website you will be able to see which cottages are still for sale and which have already been sold. The sale of our cottages in our North & South Village starts in August 2023 and these cottages will be sold at fixed prices on a first-come, first-served basis.

The sales of our unique premium cottages F01-F10, N01 and S13 will be sold by bidding. The bidding period will be open during a 2-month time-period from 01.07.2024 until 31.08.2024. The one with the highest bid on 31.08.2024 will be able to buy the respective cottage.

Of course, it is uncertain how quickly the sales will go and how many cottages will be sold in the period 2024-2025. We don’t have a crystal ball, but based on the reactions, we are confident that the sales can go fast.

CAN I RESERVE A COTTAGE WITHOUT PURCHASE OBLIGATION?

It is possible to reserve a cottage without a purchase obligation. But this only counts for the cottages in our North & South Village. When you are interested in one of these cottages, you can simply ask for a 7-day reservation. This allows you time to think over a possible purchase and/or having time to arrange the financing. If necessary, the reservation can be extended by 7 extra days if you want to buy but when you need extra time to arrange financing. After these 7 days, the reservation expires, and the cottage can be bought or reserved by other interested parties.

Remember that you don’t necessarily have to pay the full purchase price. You can even buy the cottage with a 50% payment at purchase. The other 50% you do not have to pay, but we will finance this other 50% by means of your future rental income. More information about this you will find under “payment & financing“.

WHEN CAN I GET ACCESS TO MY COTTAGE?

It can go very quickly. After you have written the purchase agreement and the payment has been received, you have access to your cottage.

HOW DO I GET ACCESS TO MY COTTAGE?

You can log in via your own personal Owners Portal, which only you have access to. Here you can:

  • Reserve your own cottage online.

  • See which bookings have been made in your cottage.

  • See how much rental income these bookings have generated.

We offer you the opportunity to book your own cottage for the coming year in the period from 01.10 – 15.10 each year. During that period, you can reserve your cottage in your Owners Portal.

After October 15, the booking system will be released for other guests. If you are not yet sure when you want to stay in your cottage, you can of course still book your cottage at a later stage. You can even book today and come tomorrow, provided of course that your cottage has not been booked by a guest. And if your cottage has been booked by a guest on a day when you would still like to use your cottage, you can ask our reception staff whether it might be possible to move that guest to another cottage (only possible for cottages in our South & North Holiday Village).

When you check in, you collect the keys at the reception, just like any other guest. Everything goes through the reception, where we have control over check-outs, check-ins, but also the cleaning and inspection of the cottages.

IS THE RENTAL INCOME TAXED?

In most cases no taxes need to be paid on the rental income, as the amount of income is most times less than the tax threshold. But because each country has different tax regulations, it is recommended to check the tax regulations in your country.

The information below on the ROT deduction applies only to persons residing in Sweden and paying tax in Sweden:

  • All rentals through the LCS (known as an intermediary company), are in principle tax-free. Only rental income exceeding 40000 sek (when there is a single owner) or 80000 sek (when there are two owners) is taxed and added to your annual income.

  • When you buy one of our premium F-cottages, you exceed this amount of 40 000 SEK and will therefore have to pay a small amount of income tax to the Swedish Tax Agency.

  • However, if you buy a premium cottage as a couple, you will instead receive SEK 80 000 tax-free and are likely to stay below the tax threshold. And even if you exceed the duty-free limit, you will only pay a small amount of tax on the amount exceeding this 80 000 sek.

NOTE: In case you buy a cottage with a 50% payment and paying the other 50% with your future rental income, you will not have a rental income to declare to the tax authorities in the first years, as this income is used to pay off the other 50% of the purchase price. In this situation you will not have any actual rental income, and therefore no declaration to the tax authorities needs to be made!

Each year, you will receive an annual report from us that shows how much income you have received. This annual overview can be used – when necessary – when you fill in the annual tax return. Two examples:

RENTAL INCOME 1 OWNER
SOUTHERN OR NORTHERN COTTAGE VILLAGE
RENTAL INCOME (SEK)
A. 100% rental income in 2024
90 000
B. 50% rental income to owners
45 000

C. Standard tax credits
40 000
D. Additional tax deductions (B x 20%)
9 000
E. Total tax credit (C+D)
49 000

Rental income after tax deductions (B-E)
–4 000
Rental income after tax deductions is minus 5000 sek, which means you don’t pay any tax!
RENTAL INCOME 2 OWNERS
PREMIUM COTTAGE F04 TALLÅSEN
RENTAL INCOME (SEK)
A. 100% rental income in 2024
180 000
B. 50% rental income to owners
90 000

C. Standard tax credits
40 000 x 2 persons = 80 000
D. Additional tax deductions (B x 20%)
18 000
E. Total tax credit (C+D)
98 000

Rental income after tax deductions (B-E)
–8 000
Rental income after tax deductions is minus 8000 sek, which means you don’t pay any tax!

To learn more about how the Swedish Tax Agency handles rental income, you can read more via the following two links:

DO I HAVE TO RENOVATE MY COTTAGE?

There is no obligation to renovate your cottage. You choose if you want to renovate or not. Keep in mind however that renovating your cottage has many advantages:

  1. Your cottage can be rented out for a higher rental price, meaning more rental income.

  2. We can rent out your cottage more often, as our guests are mostly looking for higher standard accommodation. This will result in more rental income.

  3. We can rent out your cottage year-round, which also means more rental income. (Exception: Our premium cottages F02-F07 need to close December-March period, as long as there is only water in summer)

  4. You are creating extra value in your cottage, which for a large part is paying back itself the day you decide to sell your cottage.

  5. Renovation also means creating a higher standard, more comfort, and a more pleasant stay when you yourself are spending time in your cottage.

To see the differences in return on investment, you can click on the various photos under the chapter “Costs, rental income & ROI”. Here are some calculations for renovated cottages versus non-renovated cottages.

30% ROT DEDUCTION - HOW DOES IT WORK?

The following only counts for Swedish residents: Every Swedish (tax-paying) resident is entitled to an annual ROT-deduction via the Swedish Tax Agency up to SEK 75,000 per year. This amount applies per person. If you buy a cottage (or other property) as a couple or cohabitant, both are entitled to this amount.

If you carry out a renovation or rebuild your cottage through a construction company or other registered craftsman, you get 30% of the labor costs paid by the Swedish Tax Agency through ROT deductions up to a maximum of SEK 75,000 per year. If you are two people, this is SEK 150,000.

Every year the ROT deduction amount is reset to zero and you can get the full amount again the next year. This ROT deduction will be automatically deducted from your invoice as an additional discount. The company carrying out the renovation or building project, reports this ROT deduction to the Swedish Tax Agency and takes care of the administration. You don’t have to do anything. You will see the amount of the ROT deduction on your invoice.

WHAT RIGHTS DO I HAVE AS THE OWNER OF THE COTTAGE?

When you buy a cottage, you become the sole owner to 100%. If one day you would decide to sell it again, you can sell it via any broker or via us. As the owner, you also have the first choice of the days and weeks you want to spend in your cottage, as explained in the section ‘How many days can I stay in my cottage? You can spend up to 60 days per year in your cottage, of which 21 days are in the high season period 01.06 – 31.08. You can even stay more than 60 days per year in your cottage if you want, in which case you pay the normal price, but because you are entitled to your 50% (or even 60%) provision, you only pay 50% (or even 40%) for these extra days.

CAN I DEMOLISH MY COTTAGE AND BUILD A COMPLETELY NEW ONE?

You have the option of demolishing the existing cottage and building a brand new one, according to the building permit that already exists. We already have a building permit granted by the building committee and we have also built such a new cottage (Holiday Home N01). The building permit costs have already been paid by us and this permit is valid until 2026, so if you would like to build a brand-new Holiday Home of 50 m2, in the same way as Holiday Home N01, you can do so. The permit is approved and paid for, all the drawings are ready, all the documents are there to start building new. You can contact us when you are interested in building completely new.

Our Holiday Home N01 has costed us around SEK 1,6 million in 2022, and in today’s situation with increased inflation, you must count on SEK 1,8 million. This price includes the demolition of the existing cottage, ordering the new home and putting it in place and connecting it to water, sewage, and internet. When including even the extra costs for decorating the cottage with quality furniture, a large terrace, and such, the costs add up to SEK 2,2 million. When we even include the costs for the work our own personnel has done, we can say that the real investment is closer to SEK 2,4 million.

Instead, you might be interested in buying our cottage N01, which is already ready build. The cottage is built with high quality materials, quality interior, and even a hand-build kitchen. A fair sales price would be SEK 2 450,000, which would mean we sell this cottage for what it has costed us. But because we believe this price to be too high for most people, we are willing to sell it for SEK 1 950,000. This means we sell this Holiday Home with a loss, but because we want to invest in other investments, we prefer to sell it anyway in order to free up money for these other investments.

The same option counts for this Holiday Home as the option we have for our other cottages, that you may pay only 50%, and that you can pay back the remaining 50% by means of your future rental income. So, this means you do not have to loan extra money for buying this Holiday Home. If we are not able to take in more rental income for you than this remaining 50% of the purchase price (= SEK 975 000) within a 7-years’ time-period, we will cancel the rest of the debt! That’s a risk we are willing to take, but we are convinced that we will be able to create more than SEK 975,000 rental income for you within the next 7 years, so we dare to give you this guarantee.

After 2026, you can still decide to build a cottage according to the existing building permit, but you will then need to pay a small fee to extend the previous building permit to the Building Committee according to the Karlshamn Municipality’s rate. When you plan to build new, a quote must be granted from our cottage manufacturer Husdröm or Korsliden, who are our partners regarding new construction. Contact details can be obtained from the campsite’s owner. You will receive all construction drawings, floor plans, etc. from us free of charge.

Should you build new, it must be built according to current drawings. Our Holiday Home N01 was built by our partner Husdröm (www.husdrom.se). Should you want to build new, it must be built according to current drawings. You can look at our Holiday Home N01 to see what the Holiday Home should look like when building it in our North Village. When building this Holiday Home in our South Village, the roof needs to be a traditional gable roof instead of a pulpit roof. You yourself will be responsible for the demolition of the old cottage, as well as planning the construction work. This is done in consultation with LCS, to be sure that everything goes according to current regulations and to reduce/avoid any problems around the entire project. LCS will support you in the best possible way throughout the process.

COOPERATIVE HOUSING OR OWNERSHIP?

Our cottages are not sold via a cooperative association with the right to live in a specific condominium. You are therefore not buying a condominium in a cooperative association, but you are really buying your cottage 100% and you own the cottage for 100%. If you buy a cottage within The Lake Project you own the cottage (right of ownership) and you can also sell it as any other property, by means of a broker. However, you do not own the land, which is owned by Karlshamns Municipality, which in turn has given the land under a land rights agreement to Långasjönäs Camping & Stugby. Costs for this agreement are paid for by LCS.