When there is a drop in the price of stone, whether in Paris or in provincial towns, we can rightly ask if this is the right time to buy, or to sell before a possible real estate crisis in France, which would plunge prices. Added to this is the dreadful dilemma of remaining a homeowner or becoming a tenant, waiting for things to settle down, not to block their savings and use them to invest in other values, such as gold or silver. stock market for example.
Rent rather than buy
Everything will depend on forecasts of the evolution of the market in the coming months, throughout the territory. One certainty: the good years are behind us, and those who have been able to take advantage of them must rub their hands at the time of making the accounts.
The rise has been significant and, as often in economics, it must be followed by a decline. It’s a question of cycles.
The question is to know when to sell or buy not to be had.
The question of own funds
Each case is of course different, and everyone’s finances too.
The rate of mortgages will certainly influence the price of the stone. Because what conditions the market is the relationship between supply and demand. The lower the rates, the easier it is to borrow.
Currently, large cities are the subject of massive rental investments.
An example to consult: can we buy a home without input?
The role of banks is important
The banks will have to play their role, and support or not this growth there. But as demand grows, there is a risk that prices will rise, or a real estate price crash will ensue.
It is therefore up to the banks to find artifices, such as for example the increase in the duration of the loans or the setting up of variable rates, the nesting loans , so that everyone finds himself there.
Do not forget too: notary fees .
The term chosen here is strong, but according to some experts on the subject, we are heading straight for this situation.
Remember that the increase in rates has not been followed by a rise in wages, and that it becomes more and more difficult to acquire a good with the simple fruit of his work.
And for those who are not lucky enough to have inherited or to be able to count on a loan from their banker, things get tough. Young workers, who are particularly interested in buying real estate, are also concerned.
Unfortunately, the bottom hurts: it has become very difficult for them to borrow. Because the conditions for granting a loan are draconian, especially for a 110% loan . They must present serious guarantees.
The role played by the State
The 0% loan facility, as well as the other subsidized loan schemes, should be improved to allow more French to buy, especially when they are first-time buyers.
But the coffers are empty, or close to being, and we do not see how the government could avoid it, despite all its goodwill.
Only the benefits of the ELP are still valid and beneficial.
Patience is a virtue
You understand it, it is not too much time to rush, even if you cross what you think is a good deal. Nothing tells you that it will not be even better in a few months.
All the uncertainties about the European economy do not make you want to invest your capital in a risky operation, which could prove to be a bad choice.
The forecast of a general fall in rates
The decline should spread over several years and should primarily concern cities whose prices had increased significantly.
Given the current situation, a drop of 5% per year does not seem utopian, even in Paris.
The rental is therefore pending a further rise in prices, especially as rents should follow the movement, according to the game of communicating vessels.
Except for places where demand is particularly strong. University cities should continue to play their game well,as well as suburban municipalities.
For the capital, everything is speculation, but investors should be less likely to start.
For those who are not willing to take risks, so it’s time to sell. You will sleep better. This is only advice, to each to make the share of things according to his expectations and his own financial situation. What is certain, however, is that it will be a year of movement, one way or the other!