Buying real estate: 3 good reasons to get started… now!
Borrowing rates noted on 02/19/2024
We hear everything and its opposite about the right timing to get started in real estate! It’s now, it’s not now, it will be tomorrow… In fact, we must be clear: when it comes to buying your main residence, the winds are favorable or against you, but not much better. Indeed, many purchases are initiated as part of a life event: birth, marriage, separation, change of job, family reunification to help one’s ancestors or descendants, death… life plays tricks on us, positive or negative , and real estate follows.
Nevertheless, journalists ask me, especially since rates started to rise: is it a good time to buy?
Well I’m going to give you 3 good reasons to get started… now!
First reason: you have the choice of (credit) weapons!
Since September, the banks have all started distributing real estate loans again, or if they had continued, to loosen the criteria. And if they had continued almost as before, they were then challenged by their colleagues, who returned with fanfare!
Car the competition will rage : credit is the tool for winning over new customers for banks. When it is struggling, they gain fewer customers and sell fewer savings products, consumer credit, insurance, etc. Real estate credit is therefore essential. After a catastrophic year (the Banque de France still announces a drop in the volume of credits of 40%), the banks are all mobilized.
If your file is well prepared (and you meet the criteria of the High Financial Stability Council), so you have access to all banks!
Competition always affects credit prices: 2nd good reason to get started!
Indeed, if all the banks compete with each other, they tend to wish to be more attractive, by acting on the price… the fall in rates can begin, favored by a stabilization of the cost of money for the banks (between 2.5% and 3.5% for more than 6 months).
This drop has been visible since the beginning of January: after reaching a ceiling in December, the average rate over 20 years is at 4.05% in February. And this new trend removes the sword of Damocles which was hanging over the heads of all future buyers. Each month that passed further eroded their purchasing power. An anxiety-provoking prospect which has amplified a very natural wait-and-see attitude.
This period is over, you can look ahead, imagine your project, visit, and negotiate calmly. You tell yourself that, because rates are falling, better to wait? This is because you do not (yet) know the possibility of renegotiate your credit if rates continue to fall ! This operation, which aims to have your credit purchased by a new bank, can significantly reduce the cost of your credit if the rate difference is greater than 0.7 points. A prospect envisaged by many professionals for the end of the year…
3 days good reason to get started: your negotiating power on the price of the property!
You have noted it well: the market is struggling. In 2023, the latest figures from notaries indicate a drop of more than 20% in the number of transactions… When there are fewer buyers, sellers are under pressure. In any case those who have no other choice but to sell. Remember: birth, marriage, separation…
And with the wait-and-see attitude of many buyers who hope for price reductions and rate reductions, the market will continue to slow down a few months certainly… this is the opportunity for you, who are financeable and who have a project to launch yourself and take power!
Find your gem and negotiate at the best price because if rates continue to fall, they will make new households resolvable, and more of you will probably imagine becoming the owner of this little cocoon that makes you dream so much!
To get started, estimate your borrowing capacity and make sure you have a secure and attractive file to attract as many banks as possible and thus obtain your loan at the best price!
Take advantage of our expertise at the best rate!
from 3.52% over 15 years(1)
2024-02-19 11:09:58
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