You will see, you will see, you will have your house, with blue tiles, hydrangea windows, palm trees in the sky.”
So yes, the reference is dated – this song by Claude Nougaro dates from 1978. But that’s good: becoming the owner of a home, blue tiles or not, is also starting to become quite old as an achievable dream. Galloping inflation, rising rates and the post-Covid “world after” have plunged the French real estate sector into crisis. Three statistics to fully understand the current problem:
- Borrowing rates are soaring: they went from 2.35% on average in December 2022 to 4% in September 2023, according to the CSA-Crédit Logement Observatory.
- The average price per square meter nationally has exploded in recent years, with an estimated average of 3,178 euros. This is +30% in ten years, according to INSEE. So of course, since Covid-19, prices have fallen (the average was 3,384 euros in 2019), but this drop does not compensate for the previous rise.
- The number of sales is shocking: -12% in one year, according to the Notaries of France.
Faced with this regular slippage, you may be tempted to find miracle alternatives to the good old home loan that has become (almost) inaccessible. So yes, they exist. As for miracles, be wary all the same. 20 minuteswith the help of Anne-Sophie Rebboah, CEO of the real estate group Square’s International, takes stock.
Buy bare land
The idea : It is well known, “you are never better served than by yourself. » The plan is therefore simple as pie: count on yourself. To do this, it would be enough to just buy the land, and then build your house yourself independently, whether by calling on a builder, by purchasing a container house or a tiny house or with your own hands and with your own materials for the more determined and DIY enthusiasts among you.
Why isn’t it that great? The flaw is simple: bare land is also a market in crisis. “Since the war in Ukraine, most of the materials for building your own house cost around 30% more,” notes Anne-Sophie Rebboah, “which makes the trick much less profitable than in the past. Another big oddity to take into account: supply times can be extremely long.”
Renting a home before buying it
The idea: Looks like the perfect plan. Rental-ownership, also called progressive accession, allows you to rent your property before buying it. It takes place in two stages. First step, you occupy the accommodation as a comfortable tenant and pay a fee to the lessor, in addition to the rent. After a certain time (maximum two years, don’t push it either), you decide whether you buy or not. If it’s a “yes” from you, part of your monthly fee is deducted from the price of the rent, which makes it more affordable. And if it’s a “no”, your royalty is lost.
Why isn’t it that great? It’s a good plan in reality, but often unrealizable, estimates Anne-Sophie Rebboah: “Good luck finding a seller who agrees to this option! The latter has everything to lose. Renting an apartment before buying it means seeing all the defects that you don’t spot during a visit: the noisy street at night, the lack of finishing… And since it’s the tenant who has the last word… With the market in crisis, sellers have little interest in trying this option. »
Having part of your loan paid by your boss and your company
The idea on paper: The dream of every employee, nothing less: Jean-Michel, your CEO, finances – in part – your accommodation. In fact, the employer undertakes to pay part of the interest on your behalf. A way for companies to be attractive again in a job market that is more competitive than ever.
Why isn’t it that great? “This only covers part of the interest, so a tiny part of the total amount,” indicates Anne-Sophie Rebboah. And it ties you to your business. If you resign, it’s up to you to pay the interest again. » With a job market that is much more dynamic than the real estate market, the option is not obvious.
Call on a start-up to pay part of the rent
The idea on paper: Has your boss disappointed you? Focus on a start-up instead. Take fintech Virgil. It offers buyers to supplement their contribution to a maximum of 100,000 euros, and within the limit of 20% of the amount of the operation. And this time, we are not talking about interest or even a loan, but about assistance with purchasing.
Why isn’t it that great? As you can imagine, these start-ups are demanding compensation. At the time of resale, if Virgil invested 10%, she will get back 15%, 30% if she invested 20%, and so on. But the real problem lies elsewhere: “If you do not resell your property within ten years, you must return all the money that the start-up will have invested for you. This therefore requires you to be active in the real estate market and to only see your first-time homeownership as temporary, which is far from being obvious for most French people. »
The conclusion (a bit sad)
“Beware of pseudo-miracle solutions for becoming an owner and even more so a first-time buyer. If they were as efficient as that, this would be known and there would not be such a real estate crisis. In reality, if alternatives flourish and exist, we must weigh the risk carefully and not expect too much. The solution to becoming an owner? The good old loan with financial help from parents, alas. There aren’t many real effective alternatives, and nothing will replace family heritage. »