First-time buyers are quickly faced with several obstacles when they take their first steps in real estate. Particularly during the financing stage. Jeanne and Johan are perfect illustrations of this. “As part of our studies, we left our respective countryside to settle in Lyon, where Johan and I met. Since then, it’s a city that we have never left», says Jeanne.
In 2022, the young couple decides to start looking to buy an apartment. “We were both excited for this stage in our lives as young adults“, she specifies. Stroke of luck: it turns out that an apartment, located in the building where they are tenants, is about to be put up for sale. “We knew the owner, so we visited him first. As we really liked it, the seller agreed to wait a few days before publishing an ad on the portals», explains Jeanne.
No savings, no contribution
However, two problems quickly dampen the young couple’s enthusiasm. The first is that the two assets do not yet have a stable professional situation in the eyes of the banks. Jeanne then works freelance, as a community manager, while Johan is newly hired on a permanent contract and is still in the trial period.
The second problem is that the couple has no savings set aside, which could be used as a contribution towards a real estate purchase. “During the first meeting, the banker quickly made us understand that our file was not ideal. And that a contribution, even small, could make the difference», says Jeanne. The game is even less won as Lyon real estate prices are high, on average 4,975 euros in 2022, according to FNAIM. “The 57 square meter apartment that we had spotted was listed at 275,000 euros. It was a rather attractive price for the 3rd arrondissement of Lyon», confides Jeanne.
A donation and a family loan to constitute a contribution
Jeanne and Johan decide without delay to tell their family about it. “We never asked for anything from our parents. But spontaneously, they offered to help us, to their extent. We were both very touched», confides Jeanne. Johan’s parents then make a donation of 15,000 euros to their son while Jeanne negotiates, with her parents, a family loan in the amount of 45,000 euros, free of interest. In her capacity as borrower, the young woman then writes an acknowledgment of debt to seal her agreement with her parents. “We then returned to our banker with these new elements. As we now had a substantial contribution, which corresponded to more than 20% of the amount of the apartment, our file no longer presented any difficulties. We borrowed 250,000 euros over a period of 25 years. she says.
At the start of 2023, the two young professionals became owners of the apartment in the 3rd arrondissement, thanks to the help of their parents. “Without them, we would not have been able to buy such a large apartment or we would have had to leave our favorite neighborhood. In short, we should have lowered our criteria or postponed our purchasing project until we saved», she concludes.
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