In 2023, several variables such as interest rates and the price per square meter have had a significant impact on the purchasing power of real estate. This guide will help you identify the best cities to maximize your real estate investment in France.
Understanding the purchasing power of real estate
The main steps to assess your creditworthiness
The lending capacity mostly depends on several factors:
- Monthly net income
- Fixed and current costs
- Type of purchase (primary residence or rental investment)
- The interest rate applied to the loan
- The length of the loan
These elements together form the basis on which banks measure what they can afford a loan for the purchase of an estate.
The effect of interest rates on your purchasing power
After experience a big decline at the end of 2023, interest rates have stabilized about 3.73% in May 2024.
This stability allows you to have a clearer vision for planning your future real estate investments.
The 5 best cities that offer excellent real estate buying power
Saint-Étienne: The best choice
With a average price € 1,278 per square meter in June 2024, Saint-Étienne topped the list.
For a person with net salary of €3,000 per monthit is possible to get an apartment of 158 m2, or 11 m2 more than in March 2024.
Le Havre: Port for investment
In this port city, the the average price is €2,095 per square metre.
With the same salary, your purchasing power can lead to a significantly larger surface area compared to several large urban centres.
Nîmes: A good alternative
In the third position, Nîmes also offers a good mix between reasonable cost and quality of life.
The price per square meter y allows you to buy a larger surface area than in Paris for the same net monthly income.
Dijon and Reims: Burgundy and Champagne grow
In these two historic cities, prices are still affordable.
They represent attractive platforms for those seeking balance investment etc pleasant living environment.
Strategies to improve your real estate buying power
Choose the city that best suits your needs
Each city has its own characteristics in terms of cost and lifestyle.
Analyze and choose the category that meets your personal and financial criteria is essential.
Optimize your borrower profile
There is a stable employment and a healthy financial position giving banks more confidence in your ability to repay a loan.
The stronger your profile, the better the credit conditions that banks will give you.
Take out a loan at the right time
Keep an eye on them interest rate movements before you borrow. Take advantage of times when rates are low to get more lucrative financing.
Invest in upgrades
Consider buying properties that need renovation work.
They are often sold at lower prices and can regain value after renovation, improving yours real estate.
Maximizing your real estate buying power requires a well-considered approach and in-depth knowledge of local markets.
By paying attention to the tips and cities mentioned, you will be better equipped to make smart choices that will increase significantly your purchasing power.
2024-08-03 22:44:24
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