Between the enlargement of zero interest loan to the entire territory as well as to the houses and credits at subsidized rateslower than market rates, first-time buyers arise in “big winners” of the real estate recovery, underlines the broker Empruntis in a study published this Wednesday, November 12. The Banque de France also indicates that households buying their first home now represent more than half of the loans granted by banks, whereas they had been the main victims of the surge in credit rates, in 2022 and 2023, due to an often insufficient contribution.
It is in this context that the Chamber of Notaries of Paris “wish attract the attention of young households and first-time buyers on the current issues of homeownership”, in a recent press release. If, like rates, real estate prices fell between 2022 and 2024, they nonetheless remain “raised in large metropolises”underline the notaries. Starting with Paris, where the price per square meter rose to more than 9,600 euros in November, according to data from SeLoger. But also in Lyon and Bordeaux, where the square meter is worth more than 4,500 eurosor even in Lille, where it exceeds 3,400 euros.
Find out about the cost of energy renovation
A price reality which can push young households to remain tenants of their main residence, while making a first purchase in real estate, but as a rental investment. They must then be well aware of the “reinforced energy requirementswhich directly impact buyers’ budgets”warns the Chamber of Notaries of Paris. Thermal strainers, these very energy-intensive homes rated G, F and E on the energy performance diagnosis (DPE), are in fact gradually prohibited from being rented. Buying an energy sieve is however a good plan for a first-time buyer, due to the price reduction compared to accommodation better rated on the DPE.
But if the property is purchased as a rental investment, it must be renovated to be rented, which requires spending several thousand, or even tens of thousands of euros. This is why notaries urge young buyers to learn about “the DPEthe timing of the ban on rental of thermal strainers and on the renovation costs“. They give them a second piece of advice, arising from the first, namely “find out about the assistance available to finance energy renovation projects”such as MaPrimeRénov’, the zero-rate eco-loan, reduced VAT for certain works or even aid from local authorities. Important information, even if you buy an energy sieve to live in because, without renovation, watch out for the heating bill!
Know your borrowing capacity precisely
Once aware of all this, notaries recommend that young buyers study, before their search for accommodation, the costs associated with the acquisitionsuch as agency fees, so-called notary feeswhich represent 7% to 8% of the purchase price of the property, the – increasing – weight of the property taxand co-ownership charges. In this regard, they recommend “read carefully and understand the contractual documents such as the co-ownership regulations” and the last general meeting minutes (AG). A reading which may seem tedious but which turns out to be valuable when it tells you that a renovation of the facade of the building and a repair of the roof will be submitted to the vote of the General Meeting in six months, when you will have become a co-owner and it will therefore be up to you to put your hand in your pocket!
Armed with all this information, it is then time to go see your broker or bank to find out how much you can borrow. By visiting properties without know exactly your borrowing capacityyou risk disillusionment if you fall in love! Arriving with your financing plan is also a guarantee of seriousness for the owner and the real estate agent, and can differentiate you from other candidates for purchasing the property of your dreams.
