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Cars: The weight of the real estate debt of the French doubled in 10 years

Real Estate: The real estate agents on the internet break codes and prices!

 Real Estate: The real estate agents on the internet break codes and prices! The new online real estate agencies make them talk about them. Offering much lower commissions than physical agencies and an innovative approach, they seduce more and more French. IMOP, Hosman, Liberkeys are names that begin to reason in individuals who seek to sell their accommodation. © Provided by Home & Works IMOP Real Estate Agency Visual Home and Works New real estate agencies online make them talk about them.

  Le poids de la dette immobilière des Français a doublé en 10 ans © Shutterstock / Shutterstock

in 10 years, more and more households have been able to access the property thanks to the rates tumbling. But flight of prices has dug their debt.

in 10 years, credit rates were divided by 4. and at the same time, the weight of the French property debt has almost doubled, from about 20% in 2010 to nearly 35% in 2020, According to the Bank of France (page 6) . At more than 90%, this debt is composed of the real estate credits held by the French. Rate tumbles, historically low today, has prompted more and more households to get into debt in recent years. It was the time when you had to buy at all costs, without waiting. It was the time when banks lent everything goes to everyone, sometimes taking care of the transfer duties (notary fees) of the acquirers.

Evergrande: fault fears rise, the Hong Kong Stock Exchange drinks the

 Evergrande: fault fears rise, the Hong Kong Stock Exchange drinks the © Str cup a real estate complex of the Evergrande group, in Huaian, in the province of Jiangsu, on September 17, 2021 the fears of a domino effect In the event of the collapse of the Chinese real estate Giant Evergrande, who faces this week at several debt repayment deadlines, led Monday making the Hong Kong Stock Exchange plunge.

Today, the outstanding real estate credits - in other words the property debt - is around the 1200 billion euros . More than 43% of France's debt ( more than 2700 billion euros ). What to be feared to the financial authorities a flight of over-indebted . "In reality, the over-indebtedness of the French is not in a dramatic situation ", rectifies Jean Boissinot, Secretary General of the High Council for Financial Stability (HCSF). The number of files deposited by households with a real estate credit, has still grown by almost 50% between 2010 and 2019, from 13,000 to 19,000. Before falling by 21% in 2020.

a safer credit, a more reasonable

market in the end, the number of over-indebted households with a real estate credit has neither climbed or dropped over 10 years, notes Mark Beguery, director of individuals of the Banque de France. "The last two quarters, we have seen a small deal on the part of these files, 14% in 2019-2020 to 12/13% today," he says. "Launching an over-indebtedness procedure is the last thing the owners are, even if possessing his principal residence does not prevent depositing an over-indebtedness file," says Jean Boissinot. Nearly 90% of households who filed an admissible over-indebtedness file, are indeed tenants. But, suddenly, the owners in difficulty must make sacrifices by reducing other expenses, especially food, to repay their credit.

What is behind the real estate company?

 What is behind the real estate company? The debt crisis at the real estate company Evergrande shakes the financial markets. The Evergrande shares have broken by around 85 percent since the beginning of the year. But what is behind the real estate group and why could his collapse for banks be dangerous? © NG Han Guan The headquarters of Evergrande (L) in Shenzhen in China. Share and bond investors are afraid of insolvency of the company, which was largely unknown until a few weeks ago outside of China.

It is the weight of the real estate debt which the most worried the financial authorities, which they consider "excessive". The flight to the flight of real estate prices in large cities in the last 10 years and which has moved, for 2 years, to the average cities . What to plumb the real estate purchasing power of the premises. Above all, the restrictions of the end of 2019 (no loans of over 25 years and a debt ratio of 33% and 35%) did not have the expected effect in the last 2 years. The weight of real estate debt has not frankly declined. "We remain vigilant," recognizes Mark Beguery. Especially with the threat of inflation that weighs on real estate borrowers .

On the side of the HCSF, we look forward to seeing that the real estate credit has become "more reasonable and disciplined in the granting practices". "The French will be more beyond the necessary and more mobilize their contribution when they have one," says Jean Boissinot. The credit is safer without becoming more rare. More than 168 billion euros of credit has been granted to the French since the beginning of the year (to September 2021), according to the Banque de France. 32 billion more than in 2020 and 28 in 2019. Not to mention that the share of new credits is more important than in the last 2 years.


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Surging inflation pushes cost of servicing govt debt to December record of £8.1bn .
Interest payments on government debt hit a record £8.1bn for the month of December because of surging inflation, according to official figures. © PA Chancellor Rishi Sunak says the UK's debt burden must come down despite the risk posed to the public finances by inflation The Office for National Statistics (ONS) said the cost of servicing the country's £2trn+ debt pile was almost 200% or £5.4bn up on December 2020.It is because half a trillion pounds worth of government bonds are linked to the Retail Prices Index (RPI) measure of inflation which stood at 8.4% in December - its highest level since 1991.

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