The majority of French people no longer have access to bank loans. On the other hand, bankers accept loan applications if borrowers earn more than this amount.
Real estate prices haven’t been this attractive in a long time. In more than 40 French departments “the prices of apartments and houses recorded a drop ranging from 0.5 to 9%, between January 2023 and January 2024”, indicates Loïc Cantin, president of the National Real Estate Federation (FNAIM) . As an indication, in the space of one year, “the value of real estate has fallen by around 5.7% in 8 of the 10 largest cities in France”, specifies the real estate expert.
At the same time, the number of sales in French real estate continues to plummet. FNAIM has recorded 875,000 housing sales in 2023. “A figure down 22% compared to the previous year,” explains Loïc Cantin. However, the logic of the market is implacable: the fewer sales there are, the more housing prices decrease.
Ultimately, if the prices of real estate, which are particularly attractive at the moment, are enough to make potential buyers salivate, their enthusiasm comes up against a much more complex reality. Because to acquire real estate you must obtain a bank loan. And it’s not easy.
According to a study carried out by the online broker site MeilleurTaux, you had to earn “at least 2,840 euros net per month in January 2022 to hope to obtain a loan of 200,000 euros, spread over 20 years”. Today, the amount required is much greater. And for good reason, the cost of borrowing has exploded over the last two years. The Banque de France confirms that the average interest rate charged by credit institutions in 2022 was around 1.5%. Now, banks provide loans with an average interest rate of 4.3%. Thus, future buyers cannot benefit from the fall in property prices.
In detail, “it is possible to borrow, at best, at 4% over 15 years, 4.2% over 20 years and 4.5% over 25 years”, specifies Julie Bachet, general director of the online broker Finance you. In addition, “the average contribution requested from borrowers by banks increased by 2.06% in 2023,” notes Caroline Arnoult, general director of CAFPI. For example, a person must have on average 65,000 euros for a bank to agree to grant them a loan of 205,000 euros over 23 years.
As a result, less than half of French people can obtain credit at present. Indeed, according to the study carried out by MeilleurTaux, a person must earn at least 3,720 euros net per month to hope to take out a real estate loan. This is 1,200 euros more than the median income in France, below which 50% of the French population is located.
2024-01-25 05:55:24
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