With the drop in credit rates reviving the French people’s plans to buy real estate, the debate on the respective advantages and disadvantages of owning and renting is back in the spotlight. Particularly on the financial level: in 2024, you must remain the owner of your home for at least 14 years and 8 months, on average, for its acquisition to prove more profitable than its rental, according to a study by the broker Meilleurtaux published on September 10. A duration calculated for a surface area of 70 square meters, based on the purchase price per square meter, the amount of property tax and co-ownership charges. All this is compared to the level of rent per square meter and the return generated by the sum that a tenant can invest, for example in a Livret A at a rate of 3%, instead of devoting it to the personal contribution as part of a purchase.
14 years and 8 months, does that seem like an eternity to you? A year ago, it took almost a year longer, or 15 years and 6 months, for home ownership to end up costing you less than renting. This improvement – the first in three years – is due to the drop in mortgage rates, reduced from 4% in September 2023 to 3.6% on average for 20-year loans, and the drop of almost 4% in the price of existing properties in the space of a year. At the same time, rents “have not fallen, due to the shortage of properties to rent,” adds Maël Bernier, spokesperson for Meilleurtaux. (…)
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