Buy to expand, that is the question today in the current context of the brakes on the purchasing power of real estate. and lo access to property makes it possible to acquire space in medium-sized cities, I’A special study for first-time buyers* reveals how the French struggle to invest.
Is this the right time to buy?
While the real estate market is characterized by a net decrease in the number of loans granted and lower prices across France, 67% of renters see real estate as still a safe bet in terms of investment, and 9 out of 10 dream of being homeowners. In the current context of rising prices, loss of real estate purchasing power and more stringent conditions for accessing credit, real estate site SeLoger has just presented a study on first time buyers. Survey highlights first-time buyers’ nervousness to become owners: Just 22% think it’s a good time to buy with 77% of renters expecting a further rise in interest rates.
Does becoming a landlord allow you to gain space?
To the question that plagues tenants, “Should we start?” Barbara Castillo-Resco, head of economic studies at SeLoger, replies with a kind of pragmatism:While it is true that the market is recording lower real estate prices, a wait-and-see attitude is not necessarily always the best option. In fact, the current situation of both of them must be taken into account. For example, for profiles whose investment rate is already close to the imposed cap of 35% indebtedness, waiting could hurt their access to credit. Because in parallel with this drop in prices, interest rates must continue to rise and real estate prices will have to witness a sharp decline to compensate for this rise in prices, which will not happen in the short term.. “
Cities where homeownership saves space
For renters who are reluctant to make a purchase decision, the motivation to be able to move to a larger area can be encouraged by the study indicating the best cities worth buying for expansion: among the 51 largest cities in France, when you become an owner in 20% of them it can make Possible gains in surface area compared to rent with an equivalent monthly payment: Mulhouse (gain 38 sqm), Saint Etienne (gain 27 sqm), Bourges (gain 21 sqm), Calais (gain 10 sqm). Note that these cities are – unsurprisingly – still very affordable per square meter prices: 1358€/m2 in Mulhouse, 1450€/m2 for Saint-Etienne and 1671€/m2 for Bourges.
* Special study for first time SeLoger buyers
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