Even though rates have increased, it is still possible to get a loan to buy a home. But “whatever their profile, a file needs to be prepared,” warn the specialists.
Cyril Sarnin, general manager of the CSIM real estate group (read elsewhere), and Sophie Bammez, real estate loan broker, give their point of view on the real estate situation currently in the region.
We have the feeling of hearing a bit of everything and its opposite about real estate. Was the sector really in crisis in 2023 as has been widely said?
Cyril Sarnin: You must first know what sector of activity we are talking about. If it’s transaction, rental, finance, investment, new, old…
The 35% debt rule
Making a generalization gives trends, but you have to go into a little more detail to fully understand things. Especially since we also have a French territory where particularities are increasingly important in terms of housing.
From one region to another, we do not have the same rules, the same rights… And when we live in Cours-La Ville, we do not have the same problems as in the center of Lyon.
Generally speaking, looking at the figures, do we see a drop in real estate transactions in 2023?
CS: Yes, today there is a drop in turnover across all real estate activity. Which must be clarified for us to truly understand it.
Firstly by the financial reality of the loss of purchasing power. Linked to inflation on the one hand and the increase in credit rates on the other when you borrow to buy a home.
These rates were indeed very low in recent times. At what level exactly?
Sophie Bammez: Until the end of 2021, we were on an overall average of 2% over 25 years. Today, we are close to 4.8%.
This rate obviously has an impact on the general envelope of the project. But what will slow down the granting of loans the most will be the new rule of 35% debt. We do not have the right to exceed this rate which corresponds to a third of your income. It is enough for you to have a loan, because you have done work or bought a car, so that behind you you have a minimal borrowing capacity and which is not representative of what is happening on the market.
Hence the difficulty, especially for younger generations, of buying housing?
CS: For first-time buyers*, with a budget of, for example, 100,000 euros, you don’t have much. For example, in Beaujolais, for 100,000 euros, you can’t find anything.
And then there is also the supply of housing. In rural areas, you have very few apartment acquisitions.
A loan of 200,000 euros for someone on RSA is not possible
That’s to say ?
CS: What is for sale is mainly either complete buildings or individual houses. Buying an apartment in Charlieu is complicated; there aren’t many for sale. And in Cours-La Ville, there are none at all. You are required to buy a set.
While in Lamure-sur-Azergues or Beaujeu, the market is starting to exist for the sale of apartments. With a lower acquisition cost.
Can banks grant loans to people without down payment?
SB: A bank that says it will lend you without down payment, that’s true and that’s not true. Because it will ask you either for a contribution, or to have the savings corresponding to this contribution in a savings account.
So whatever it is, the person must have savings. This must generally correspond to the costs of: notary, bank file and guarantee.
In any case, it’s a small note of 10,000 euros that you need to have in savings.
And if you have one or more loans (car, consumer, student) outstanding, are there solutions to avoid being immediately stuck by the 35% maximum debt rule?
SB: Yes, for a couple who have, for example, two loans, we still have the possibility of grouping them and smoothing them out over a single longer monthly payment, up to 12 years.
Since the duration will be longer, the monthly payment will be lower and may give the possibility of accessing the property loan. We work a lot like this at the moment, because it represents a viable solution.
CS: Anyway, there aren’t many possible solutions. Either you reduce the debt to below 35%, or you increase the financial capacity of the client, that is to say you increase their income.
And that, overnight, is not possible.
Is it an exaggeration to say that banks no longer lend?
CS: That’s not true. Yes, we can still borrow. But today, to obtain a bank loan, whatever your profile, you must prepare your file. And know how to “sell yourself” in quotes.
Just after covid, we had the impression that the banks were almost social and lending to everyone. And today, some people receiving RSA do not understand that we are not lending them 200,000 euros.
And if you have just one payment rejection on your account, we consider that you are a bad payer and we will not give you a loan.
A first-time buyer is, in the administrative sense, someone who has not owned their main residence for at least two years.
Courtier A wise choice.
2024-01-11 07:02:18
#Interview #borrow
