Cécile Roquelaure, director of studies for the broker Empruntis and Marie Denis-Noujaim, from the Chambre des notaires de Bretagne, answered your questions this Thursday in a special real estate livestream. Dhe informed and valuable advice that deserves to be read and reread. Here are the 10 questions you shouldn’t miss.
1. “Is it more interesting to go through a notary or a real estate agency? »
Many notaries, like real estate agencies, have a negotiation activity, and therefore support you in your home sale or purchase project. Agencies such as notaries can be consulted and each does quality work. We note that the negotiation fees due to notaries are often a little lower than those of agencies. The notary, if you are selling, will also be able to advise you in advance on the taxation applicable to your project, and in particular the possible capital gains tax that you will have to pay during your transaction. On the buyer’s side, the notary who has a global view will advise you on the method of acquisition and the protection of the possible spouse.
2. “I own land with a sea view in Plougastel-Daoulas. My banker tells me that this region is a very good investment while others say not (notary). What is it really? »
A sea view plot of land in Plougastel Daoulas is indeed a very good investment, that’s for sure, as long as there is a sea view, the valuation is not the same. The town is in the immediate vicinity of Brest and benefits from the dynamism of the city. It is true that on the other side of the Bridge and backing onto Brest, there is the commune of Relecq-Kerhuon, with slightly higher prices, but the value of old houses, for example in Plougastel-Daoulas, is rather high.
3. “Why don’t banks lend when my partner and I each have a rental property? »
If I understand your situation correctly, you and your spouse each own a property for which you receive rent. You want to take out a new loan but you have been refused (by one or more banks? The nuance is important!). It is possible that the bank(s) requested will refuse your financing because you exceed the debt ratio required by the supervisory authority (the HCSF). It requires banks to respect a limit of 35% debt rate, loan insurance included. However, banks can deviate from this up to 20% of the production of new credits. You must therefore be sure that this possibility of exemption is not open to you, in any bank if in fact the subject is on your debt ratio.
4. “From what energy class do you think that buying a house is not interesting if work is not planned? »
The law provides for progressive rental bans for properties classified as G, then F and E. The worse the energy performance, the greater the cost of the renovation requiring more work. If you are not planning any work, and if you are planning to rent the house, then I advise you not to go below D. If, on the other hand, you are buying for yourself to establish your primary or secondary residence, you can take a property in category E or even F. If the category is really bad, you must study the cost of the heating expenses that you will have to bear monthly to see if you have the possibility of paying the bills relating to the property.
5. “Will the market for large real estate properties (around €700,000) restart? »
Transaction volumes have fallen almost everywhere by around 20 to 25% in one year. Correlatively, we noted a drop in prices which began with differences depending on the region. It seems that in certain sectors, we have reached the low volume plateau which seems to be starting a recovery. Large properties are often acquired by people who could wait to see changes in particular in credit rates. The latter have fallen and should therefore favor the market’s recovery.
6. “I took out a mortgage at 4.17%. Should I go see my bank to renegotiate it, it was subscribed in December 2023.”
If you consider that the gain is sufficient today, you can request it from your bank. However, you should know that it is unlikely that you will be able to start again (banks rarely accept several renegotiations). You therefore “play” your only card. And if, however, rates continue to fall, you will have to favor a loan repurchase by another bank to see your interests drop (with higher fees in return). To date, the average rates charged by banks (and which also depend on the project and profile) are around 3.8% on average. The gain is therefore very possible on paper at least!
7. “I have a financing requirement of €120,000 even though I have real estate assets valued at around €1,100,000. I am 75 years old. »
You can contact a bank to find out if they would agree to lend you the amount you need. Failing that, perhaps you have financial support that you could liquidate. Depending on your project, you may be able to sell part of your real estate assets, which will free up cash for your financing needs. It is also possible to study a life annuity sale which would allow you to receive part of the sale price called “the bouquet”, but the life annuity sale is not necessarily suitable for everyone. It is necessary to study the family and property situation.
There are also mortgage loan solutions (taking security on a debt-free property to ensure the debt of the new financing. As an alternative to a life annuity, you also have the possibility of taking out a mortgage life loan, unlike a life annuity, it allows you to immediately receive the entire amount while retaining the property, the sale of which will be used for reimbursement at maturity only (no monthly payments to bear and no health examination).
8. “Is it possible to borrow today and review the loan rate at the end of the year if it were to drop? »
It’s entirely possible, although the end of the year seems a little early if you take out a loan today. Be aware that you will not have the opportunity to renegotiate several times (rare banks accept this). You will therefore have to choose the appropriate moment, when you consider that the gain is sufficient. In any case, if you take out a loan today, and the rates drop, you will be able to renegotiate or have your loan purchased by another bank if necessary! This allows you to carry out your project today, while giving you the possibility of benefiting from a future drop in rates!
9. “We would like to invest to rent. What do you recommend? House, apartment, in a big city, in the countryside…? »
Investing in big cities remains a good investment since there is a strong rental demand. Be careful for apartments in large cities to look at the energy performance, and possible co-ownership work which may be envisaged and which may increase the cost of your investment. In smaller towns, we realize that there is a strong demand for rental, but often few properties on offer, and there the purchase of a house in the first or second ring of the metropolis can also prove to be a good option. placement.
10. “Are young people aged 25-30 today able to obtain a decent property loan with a reasonable deposit, for a 1er purchase ? »
It is not access to credit that is the real problem but the price of real estate… Some elements of explanation. First of all, young people are the clientele favored by banks: “winning” a young client is the possibility of supporting them in all stages of their life and therefore “selling” them products and services (insurance, savings , Consumer credit…).
Then, young people are often first-time buyers. They therefore have access to zero-interest loans and the banks to support them have also developed additional loans whose rate is lower than the traditional rate, or even 0. These devices, whose characteristics vary depending on the banks, make it possible to lower the rate. cost of credit and therefore increase purchasing power.
Finally, you mention the contribution, you are absolutely right it is a huge constraint for young people who often have not had the time to save as much. It should be remembered that the contribution generally corresponds to the costs linked to the operation (around 10% of the price of the property in the old property): transfer duties for valuable consideration (taxes, etc.), guarantee costs and administrative costs. These costs are not part of the value of the property and by financing them the banks take a risk, which they also pass on to young people in the event of resale before having generated 10% more added value on the property.
While the market is turbulent, banks are taking less of this risk. Finally, the last element of explanation concerning the contribution, for which the banks are still more accommodating for young people, it is also the sign of a capacity for savings and therefore of room for budgetary maneuver (important when we see the charges weighing on the owners).
In summary, purchasing difficulties today are strongly linked to the price of goods, and the volume of offers available, which is also the root of the crisis that we have been targeting for 2 years.
