Soon to be a homeowner: 5 good real estate "costs" to grab!

Reassuring, elegant, interesting... there's no shortage of adjectives to describe real estate! For all these reasons, real estate is a real magnet for young buyers. It appeals strongly to those who want to pay off their home as soon as possible, while benefiting from very competitive borrowing costs. It also appeals to first-time investors, who see an opportunity to capitalize and generate a handsome return compared with financial investments. This is all the more true in times of crisis, when real estate knows how to use its safe-haven status to its advantage.
A study by the Notaires de France shows that the average age of a first property purchase is 32. But the peak purchase age is between 25 and 30, with 41% of people buying during this period. By way of comparison, in recent years, surveys on the subject have tended to place home ownership between the ages of 35 and 38.
Motivations to buy are largely encouraged by the cost of renting. Particularly in major conurbations, where millennials - aged between 25 and 39 - are discovering that they can own a home for the price of rent, while benefiting from almost double the floor space.
This enthusiasm for property acquisition is largely fuelled by the competitiveness of mortgages. Rates for all terms are still at record levels, from 0.97% for 15-year mortgages to 1.10% for 20-year mortgages and 1.35% for 25-year mortgages, according to the Observatoire Crédit Logement / CSA.
And in the current health crisis, the desire to cocoon in a cozy interior can only be reinforced. This is accompanied by a strong desire for an apartment with a terrace or a house with a garden. The Yonne département, for example, saw a 27% year-on-year increase in the number of buyers from the Paris region in the third quarter of 2020, according to the Notaires de France's 2020 real estate report. In view of the love affair between young French people and real estate, we thought it would be interesting to take a look at how to buy a property without breaking the bank. Here are five approaches that can be used at any age. Here's looking at five approaches that can be used at any age.

1st good cost: the house to relook

As the saying goes, "clothes don't make the man", and the same applies to the houses you find for sale. Admittedly, the most flattering properties, where you can simply put your suitcases down, are not lacking in charm. However, they charge more for their services. Other products on the real estate market are in need of refreshment, but are nonetheless excellent opportunities. The quality of their construction and the materials used are well worth a look. All the more so as they enable you to become a homeowner on a much tighter budget.
How much can you save? For a house where you have to consider redesigning the interior, fitting out the kitchen, modernizing the bathroom, creating cupboards... the property is discounted by around 30%. On a €180,000 house, this represents a saving of €54,000. An appreciable gain when it comes to negotiating your mortgage. This necessary refreshment should not be an obstacle to making the final decision. In fact, as the notaries keep saying, the real value of a property depends largely on the quality of its location. As long as the house is located close to schools, shops and transport links, it has everything it needs to appreciate in value.
What assistance is available for renovation? The good news for 2021 is that all owner-occupiers can benefit from MaPrimeRénov'. This scheme provides financial assistance for energy renovation, depending on income.

The Coup de Coeur?
A house dating from the 75s and 80s, built with quality materials such as stone walls and slate roofing... It also benefits from satisfactory insulation, as its design complies with the first thermal regulations dating from 1974!

2nd best value: digital sales

Bargains are yours thanks to the 36h immo platform, which offers properties for sale via online auctions. The advantage: properties are priced 20% to 30% below their market value.
How do you track down the best deals? With 36h immo, the highest bidder wins the sale. Failing that, the one with the most attractive financing plan. Two criteria that don't necessarily give young buyers the edge. Unless you're interested in more rural areas, spared the real estate tension that characterizes large conurbations. Under these conditions, fewer buyers will be eager to drive up prices.
As a result, quality properties are sold below market value.
The advantage of the 36h immo formula is that you can sign for a property in a record time of around 30 days. Buyers are delighted to benefit from the notary's legal support, as the notary drafts the preliminary sales agreement prior to signing the deed of sale.

ON A FLASH... for the www.36h-immo.comwebsite , which brings together all the properties offered for sale interactively by notaries throughout France. Like this renovated farmhouse with 110 m2 of living space on 2,380 m2 of land, with a starting price of €149,800, located in the commune of Concèze in Corrèze (19)!

3rd best value: 0% interest projects

To limit your budget, you need to go hunting for the best financing conditions, and there are plenty of opportunities to make sure you don't come up empty-handed with zero-interest or 1% housing loans.
While they benefit a maximum number of first-time buyers, their amounts are calculated according to household resources and the geographical location of the project.
How to get the best rates? The best deals start with the zero-rate loan (PTZ). This is an opportunity to finance your project at a lower cost. Buyers should not hesitate to take advantage of it. Here are the conditions:
? build or buy a new home anywhere in France ;
? plan to carry out work representing at least 25% of the total cost of the transaction, if the property is located in zone B2 or C (towns with fewer than 50,000 inhabitants);
? not have owned their home for the past 2 years;
? meet certain income thresholds, e.g. for a household of 2 or 4 people.

More details at: www.economie.gouv.fr/particuliers/PTZ-pret-taux-zero
Under these conditions, the PTZ entitles you to :
? a loan representing up to 40% of the price of the property ;
? a repayment period of 20 to 25 years, with a grace period of 5, 10 or 15 years without repayment of the PTZ.
As good news never comes alone, the PTZ can be combined with the Action Logement loan. This is a loan at a reduced rate of 0.5%, which can be used to finance a purchase or renovation for a maximum amount of €40,000 and a maximum repayment period of 25 years.
For lovers of old buildings, don't forget that the eco-loan at zero rate (éco-PTZ) facilitates energy-efficient renovation of older homes. It entitles you to up to €30,000, provided you carry out 3 works to achieve a minimum overall energy performance. This may involve, for example, insulating the roof or exterior walls, or replacing windows. Conditions to be met: the house or apartment must be declared as a principal residence and have been completed before January 1, 1990.

GOOD PLAN. To benefit from the most generous zero-rate loan possible, up to 40% of the project, it's best to consider a new-build property purchase in major conurbations (zone Abis, A, B1).
In more suburban or rural areas (B2 and C zones), you're better off buying an existing property.

4th best value: properties for conversion

Shops, offices, workshops... these are all properties that are ripe for renovation. The advantage is that they are ideally located in the heart of towns, close to schools and services, and are ideal for a family. What's more, some can be negotiated for budgets that defy all competition on the market.
What conversions to consider? Properties in need of conversion should attract the attention of buyers. Especially in light of the health crisis, which will accelerate the process. With the boom in telecommuting, a growing number of buildings could be converted to residential use. Before embarking on this adventure, a few precautions should be taken on the buyer's side:

• contact your local town hall to find out about the local urban development plan (PLU) and whether conversion is feasible;
• apply for planning permission and the approval of the co-ownership if the work involves alterations to the facade or load-bearing structure;
• adjust the tax system so that you are no longer liable for the territorial economic contribution. In this way, property tax will be calculated on the basis of the new cadastral rental value, which is different for a business or a home.

In this type of project, the emphasis is on architectural originality, with high ceilings, roofs with skylights, frameworks with exposed metal beams, brick walls... These former commercial premises offer volumes and materials impossible to find in standard housing. They sell for between 20% and 40% less than a ground-floor apartment, but you have to add the cost of the work.

WE LOVE... the immonot website, which has a "Fonds et murs commerciaux" section with hundreds of character properties just waiting to be taken over or transformed.

5th best value: buying a life annuity

A large house at a low price that you agree to share with the former owner is one of the opportunities offered by the so-called "occupied life annuity". What precautions should be taken to find the rare gem? Let's take an apartment worth €150,000 and a seller's life expectancy of 15 years as an example. According to life annuity expert,
Michel Artaz, the price includes a bouquet of €30,000 and an annuity of €400 per month.
Alongside traditional life annuities, we are seeing the development of cash sales. This involves paying the occupied value of the property in a single instalment. In the example above, this would be €83,000 in cash.

TIPS. A life annuity purchase is based on calculation methods that must be defined by a professional accustomed to this type of transaction. The notary is the best person to talk to!

Christophe Raffaillac