The figures speak for themselves: Nearly 65% of French household assets are real estate. However, in reality, this “stone” is often unexploited. With the result, the contraction of consumer credits to 8% or 9% of certain wealthy owners even though they hold much larger real estate assets. Because owning a property does not always mean having immediate liquidity. Traditional banks are in fact reluctant to lend on simple asset value, especially without proof of use of the funds.
Rich in stone, but poor in cash? The solution exists: borrow against the value of your property without selling it. More and more owners are structuring a liquidity reserve backed by their real estateaccessible at any time, and above all without selling the smallest square meter.
Transform the value of your property into available cash
This is the principle of mortgageas detailed by Isabelle Bail, director of banking partnerships at Vousfinancer: “ Real estate assets should not be fixed: well structured, it can become a real source of liquidity without being sold“. The mechanism consists of put a property as security to obtain a amount of money proportional to its value estimated (generally between 30% and 70%). These funds can then be used freely, without having to justify expenses.
A flexible lever to finance projects, inheritances or unforeseen events
The classic mortgage loan is aimed at owners with financing needsfor example for carrying out major works such as energy renovation; to help a loved one settle in or study; to diversify your assets (investment, SCI, SCPI, etc.); or even to replenish a comfortable cash flow. “ The mortgage loan allows you to transform part of the value of a property into available liquiditywithout having to sell it or leave your homerecalls Isabelle Bail. It thus offers the possibility of mobilizing assets that are often immobilized, in order to finance projects, improve one’s standard of living or meet expenses, while maintaining one’s living environment.»
Make your assets liquid without reimbursement
For owners over 60 years old, a special formula reinforces this tool: “THE mortgage life loanunderlines Isabelle Bail.It allows to make your assets liquid without incurring monthly repayments “. This device makes it possible to obtain a capital without maturity: the amount loaned is not subject to any repayment during the lifetime of the borrower. The capital (and interest) is regularized at the time of inheritance. An ideal solution to supplement your retirement, finance home help, adapt your home without monthly effort or help your children. Always staying at home.
A full-fledged asset management instrument
Still marginal ten years ago, the mortgage loan is once again becoming a modern asset management instrument. Wealth management advisors recommend it for streamline real estate assetslike an open real estate line of credit. A more strategic approach, in a still uncertain rate environment. Stone, long perceived as a fixed asset, thus becomes a liquidity leverage offering owners the financial freedomoften reserved for professional investors. For many, wealth is in the walls. The challenge remains to circulate it intelligently.
