What if investing in residential real estate could be resilient, profitable and responsible?
in France, more than a million dwellings are missing. In large metropolises, the search for a good is a laborious work. However, the French spend on average almost 20% of their purchasing power in their accommodation. The promoters are struggling to respond to this request: the sales puts fell 30% compared to the 1st quarter of 2021 so that the number of housing on sale has dropped below 80,000, indicates the federation of real estate developers of France (FPI) In its report of T1 2022.
in twenty-three years, the Purchase Power Real estate of the French has sank. In any case, this is what a study of notaries on this subject, relayed by BFMTV . More specifically, they explain that in 1999 a tricolor household could acquire, thanks to a credit of 20 years, without contribution and the fixed insurance rate of 0.36 %, a property of a surface of 99 m². Today, according to the authors, this real estate purchasing power drops to 80 m².
The real estate purchasing power fell at the lowest in 2008
if the situation is not as tense as in 2008, the year when the property purchasing power fell at the lowest, at 58 m² due to the rate Close to 5 %. Until 2019, he ended up going up thanks to a decrease in rates, reaching 86 m² three years ago. In the third quarter of 2022, it fell to 80 m². Thus, in 23 years, the French have lost 19 m² of real estate purchasing power; And are however in a better situation than fourteen years ago (+22m² compared to 2008).
Time to give annuities another chance? Rates soar 50% this year
Annuity rates are at a 13-year high which is 'turbo-boosting' the amount of guaranteed income pensioners can receive in retirement, say financial experts. For £100,000, a healthy 65-year-old can buy a single life annuity with no inflation protection at a rate of around 7 per cent, or an income of just over £7,000 a year, according to industry average data.One provider, Canada Life, says its benchmark annuity rate similar to the one above has jumped 52 per cent to nearly £6,900 a year over the past nine months, while its inflation-linked deal has soared 77 per cent to nearly £3,900.
compared to last year, the borrower lost 11m² in Saint-Etienne, while winning 23 m² compared to 2012. It loses 5 m² compared to 2021 in Le Havre or Marseille, but wins respectively 5 m² and 1 m² in 10 years. Compared to last year, the borrower lost 4 m² in Dijon, Reims, Grenoble, Toulon and Montpellier, but he won square meters compared to 2012, except for Montpellier where he lost nor won.
What will happen next year? According to notaries, after two exceptional years, the market will be more homogeneous and more slowed down. Despite increasing rates, the latter are currently below inflation. The problem of the wear rate, which slows down numerous credit requests, will have to be put on the table to help the French in their acquisition project.
Article Real estate purchasing power: the French can no longer buy as large as 20 years ago appeared first on Better Living your money .
Purchasing power: The French have “lost” 20m2 in 20 years .
© Pascale Gueret/Adobe Stock Purchasing Power: The French have “lost” 20m2 in 20 years by launching a borrowing over 20 years, the French would now have the capacity to buy an average of 80 m2. A loss of land compared to the late 1990s. in just over twenty years, the French would have lost almost 20m2 in terms of purchasing power . This is what emerges from an study of the notaries of France , whose results are relayed by BFM Business .