Should you rent or buy a property for accommodation? The question undoubtedly arises at different times in the lives of the French, depending on their aspirations and their means. Experts are answering this question as the real estate market has entered a phase of tension.
The real estate market seems to be recovering. While today there are more offers than demands, since the beginning of the year we have started to observe a constant drop in loan rates and the prices of goods fall at the same time. This stimulates buyers and allows us to observe an increase in acquisitions in several cities and departments, particularly in Paris and Hauts-de-Seine according to Point who inquired with the Century 21 agency. It is in this very particular context, not to say tense, that the site bestagents.com publishes the results of an analysis of the 200 largest French cities and answers a subsidiary question that everyone is bound to ask themselves one or more times during their life: should you buy or rent?
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To answer this question, the experts decided to analyze several data in order to discern the number of years needed for a property to become profitable in each of them. They took into account the average price per square meter for the purchase of a 70m2 apartment and compared the situation of a couple without children who embark on a real estate project with a contribution of 60,000 euros and for a loan over 25 years. We obviously take into account all the costs generated by access to property, such as property tax and co-ownership charges. We compare this project to that of a couple living in the same way and without dependent children, who would place these same 60,000 euros in savings earning 3%, and including a regular increase in their rent.
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Mulhouse, Creil and Saint-Quentin at the top of the list
From there, Meilleursagents calculated the time it took to have assets greater than the savings that had been invested, and obtained the result at least four years for the highest ranked cities. This is the case of Saint-Quentin (Aisne), Mulhouse (Haut-Rhin) and Creil (Oise). We then move on to five years as soon as we talk about Charleville-Mézières (Ardennes) or Belfort (Territory of Belfort). Note that in the Top 10 we find several cities located in the Seine-Saint-Denis department, such as Stains or Sevran. At the top of the ranking, cities in the East, the North and the Paris region are mainly cited.
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The average of the cities studied is 10 years. This is therefore the time required to make a good purchase profitable in mainland France at the moment. This is not inevitable: buying in a large city like Paris, Lyon or Marseille does not predict a higher profitability threshold. It takes 11 years in the first, 13 in the second and “only” 10 in the third. For what ? Because rents are very expensive there, like the price per square meter when purchasing. Conversely in very popular medium-sized towns where the price per square meter is very high compared to that of rents. This is the case in Sables d’Olonne (Vendée) for example, where it takes 20 years to make your property profitable.
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Access to property is not just a calculation
Meilleuragents also underlines that in all cases it is life choices which must define the interest or not of buying rather than renting. “If the amortization period corresponds to the life plan in the city, purchasing this type of property remains a good idea”, we emphasize. It is a speech which resembles that of Vincent Dubreilreal estate agent in the Nantes region (Loire-Atlantique), and who delivered its expertise in aufeminin.com. This in fact reminds us that “the rate of monthly payments due to a loan can be renegotiated” over the years, “still decreasing”and that it is also possible to “to repay a large sum in advance at once”, “which can also change the credit rate” Near the bank. “Unlike a rent which is always revised upwards every year”he adds.
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Furthermore, Vincent Dubreil also recalls that, “people who reach 50-60 years old” And “take stock where nothing belongs to them” can be stunned by doing “the simple calculation of having been a tenant all their life”. Finally, and here it is not only the figures that speak, but “a lot of elderly people” that he meets “during prospecting” indicate “prefer to die at home than in a place she doesn’t know”.
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