Buy or rent: Fnaim helps you choose
13 December 2021
Buy or rent: advice from a professional FNAIM real estate agentBuy or rent? Is it more interesting to be an owner or a tenant? A choice to be based on the analysis of the charges linked to the property ( property tax , renovation work, upgrades, co-ownership charges) and the absence of any form of savings in the payment of rent. In the end, the quality of the living environment offered by one or the other of these two solutions will prove to be essential. According to INSEE, a little more than one in two French people own their home. Although home ownership is one of the major concerns of our fellow citizens, the tenant status can sometimes be better suited to certain budgets when we take into account the possible co-ownership charges, property tax and the cost of energy. The final choice between buying or renting will ultimately be determined by your medium to long term prospects. Evolution of incomes of course, but also lifestyle and decision of geographical location.
Rental for mobile peopleA person who has to change residence regularly for professional reasons will rather turn to rental. This type of accommodation is more flexible (notice of one or three months depending on the economic or family situation of the tenant, the geographical location of the accommodation or whether the accommodation is furnished or not). Renting is also the best solution for students or young workers, in particular. The former can reduce the costs of their housing thanks to collocation, while the latter generally have neither significant contribution nor professional visibility to be able to invest in real estate. Collocation rental can also, thanks to the savings generated, allow these young people to build up the capital that will make them eligible when the time comes for a mortgage. Buying or renting depends on your life plans.
Prepare your purchase plan well and choose between buying or rentingReal estate experts necessarily take a purely accounting approach to the question. They will therefore always tend to advise young households to invest in stone as soon as possible. This is logical advice when loan rates are particularly low, as is currently the case (3.04% over 16.6 years according to the CSA Credit / Housing Observatory). The purchase induces a "forced saving" which makes it possible to capitalize for its old age. When retirement arrives, the owner will have paid off his loan, and no rent to pay. This provident insurance is particularly welcome when we know that the average pension of a retiree is only € 1,256 gross per month according to statistics from the National Old Age Insurance Fund (CNAV) released on May 27, 2013. However, embarking on homeownership deserves careful analysis and editing of the purchase plan. In 2011, 6.2% of over-indebtedness files filed concerned home buyers according to the Banque de France. However, this rate is down compared to the 10.1% posted in 2011. Be careful, however, to take into account all the costs incurred by homeownership. An owner must pay the property tax on built properties (in addition to the housing tax), face the financing of maintenance work, but also the replacement of major equipment, renovation work, maintenance charges. management of the co-ownership in the event of purchase of an apartment building, etc. When buying an old home, the new owner should be aware that its energy performance is generally poorer than that of a recent house or apartment. The energy bill will therefore necessarily be higher. In addition, young households tend to move away from city centers to benefit from lower prices than those observed in the heart of urban areas. These families must therefore include in their future budgeting the expenses incurred by the purchase of housing far from their work (transport, car loan, parking, etc.). All these expenses, cumulated with loan maturities, must not induce an excessively large “jump in expenses” (total current expenses) when the household changes status and becomes owner. Experts in the sector - bankers and real estate agents - have in this regard a duty of advice to raise awareness among applicants for accession. A global approach essential for the success of the project. So for you it's decided? is it buying or renting?
Buy, rent? - What changes with the ALUR law
- For owners, the law for Access to Housing and Renovated Town Planning ( Alur ) requires condominium trustees to set up a "work fund", which must be topped up regularly by the co-owners in order to finance future renovation programs. . So many expenses to be expected when buying housing.
- For tenants, the legislative text provides for reducing to 1 month the notice period for empty rented accommodation in "tense areas", that is to say in agglomerations of more than 50,000 inhabitants where there is an imbalance between housing supply and demand. In addition, the security deposit must be returned within a maximum period of one month instead of two today, if there are no reservations in the inventory. Any delay will be penalized by a penalty of 10% of the monthly rent (excluding charges) per month of delay.