It has been a long time since candidates for real estate investment have observed such favorable conditions for the purchase of housing in France. Started in 2012, the gradual downward variation in real estate prices (from 0.5 to 1.5%) should accelerate sharply by the end of 2013 to reach a drop that can vary from 5 to 12% depending on the region.
And mortgage rates have reached a historic level of 3.40% on average over 20 years. If you plan to materialize your real estate project, do not hesitate for a moment to get started because the conditions are met for your real estate purchase to be very advantageous.
Find an easily negotiable property
Today, you have an average trading margin down by around 5% on the displayed price, which is always interesting. However, you can lower the price of accommodation even further. For that, try to take note of the date of purchase of the accommodation by the seller, by asking him for example questions on the evolution of the property tax or even on the network of public transport. If the seller has owned the property for 10 years or more, this means that he will benefit from an interesting capital gain due to the soaring prices noted over the period, and therefore that he will be more inclined to accept to fall further its price if you insist.
Also note that homes built less than 5 years ago or which have been completely rehabilitated can be negotiated without much difficulty because, since January 1, 2013, the sale of these goods is exempt from paying VAT on the most- value realized. However, as a buyer, you can no longer benefit from reduced notary fees, which represents an additional cost of around 3 to 4% of the purchase price.
Negotiate your mortgage if you have a solid file
In order to limit the risk of default by borrowers, the banks only grant mortgage loans to the best cases. For banks, an application is ideal when the loan applicant has been employed on a permanent contract for at least 3 years, when he has an annual income of 50,000 dollars (80,000 dollars for a couple) as well as a personal contribution of at least 10 % of the desired borrowed capital.
With such a profile, the borrower can benefit from a borrowing rate 0.2 to 0.3 points lower than that of the traditional scale. As a good customer, it is also interesting to try to negotiate flexible monthly payments, as well as the elimination of administration fees (1000 dollars on average) but also of the compensation applied in the event of early repayment (3% of the capital due ).