The online broker Pretto is currently observing a lull in demand for second homes after the post-health crisis craze that had won over many French people wishing to afford a property in the countryside, in the mountains or by the sea for the most fortunate.
Pretto thus estimates that demand for second homes contracted by 7% between January and April 2022 after having jumped by 30% between 2019 and 2021. Pretto observes that buyers are mainly attracted by the South (Provence-Alpes-Côte d Azur and Occitanie), apart from the Ile-de-France residents who prefer Normandy.
A much needed contribution
The share of second home purchase simulations carried out on the pretto.fr site had thus peaked at nearly 5% during the summer of 2021 and is now slightly above 3%. The secondary residence is generally reserved for privileged households. Pretto clients wishing to acquire this type of property are in their forties (45 years old on average), have a net income per household of around €6,000 and more than 2/3 of them are already owners. Their average budget is €240,000 and they have an average personal contribution of nearly €55,000, or more than 20%.
The real estate loan broker also points out that a contribution of at least 10% is essential because banking establishments are often more demanding on the level brought to the project for the financing of a second home than for the purchase of his main residence or for a rental investment.
Advice before borrowing
” In the current situation, borrowers who have no current credit on their principal residence will be favored by banks. For the others it will be necessary to think of proposing to his banker a repurchase of the credit in progress if it is possible, or to propose to invest savings to improve its capacity of negotiation “, advises Pierre Chapon, president of Pretto.
Tenants of a main residence will also have fewer possibilities of being financed because it does not make sense, in the eyes of the banks, to combine the monthly payment of the loan and the rent on their main residence. ” Indeed, unlike a rental investment, the purchase of a second home does not generate additional income. “says Pretto.
Country houses
Olivier Colcombet, president of the network of real estate agents Optimhome, recently confirmed a strong recovery of the country house as a second home. ” It is not only new rural people who buy to settle outside the cities, but households who acquire a second home there. “, explains Olivier Colcombet.
Often in need of renovation, these country houses have experienced an impressive revival for 2 years after being neglected for many years. Difficulties in the supply of building materials and the increase in their prices could, however, curb demand for houses requiring major renovations.