REAL ESTATE CREDIT: SHOULD YOU BUY IN 2019?

REAL ESTATE CREDIT !


REAL ESTATE CREDIT: SHOULD YOU BUY IN 2019?
REAL ESTATE CREDIT: SHOULD YOU BUY IN 2019? 


The year 2019 is planned as a less interesting period for the purchase of real estate. Several indicators tend to confirm this estimate.

This concerns the rise in housing prices, the stopping of home ownership aids and the household spirits pulling down.

THE CASE OF FIRST-TIME BUYERS IN 2019

At present, first-time buyers are at a peak of 56%. This rate may drop to 40% in 2019. In addition, the demand may become more rare. Indeed, first-time buyers constitute the bulk of the owners of the real estate market.

Indeed, the curve relating to the volume of credits and the curve of first-time buyers follow each other. Nevertheless, if first-time buyers are in sharp decline in 2019, this can lead to a disturbing reversal of the real estate market.

A PROBABLE INCREASE IN REAL ESTATE PRICES

The stagnation of the demand for housing for purchase is linked to the rise in the price per square meter.

For this year 2018, prices recorded a significant increase of 3.7%. All types of housing are concerned, namely private homes as well as apartments.

Nevertheless, the proposals remain diversified. The rise is about 3, 4% for an apartment against an average of 2, 6% for a house. In fact, low-income clients choose homes in rural areas or small provincial communities.

Thus, the dynamic cities have a real estate park showing a vertiginous rise in prices. We can mainly mention Bordeaux, Lyon or Rennes. In addition, connections to the French capital via LGV or high-speed lines may intensify the high rate of dynamic cities.

THE ESTIMATED RISE IN INTEREST RATES

An expected 0.5% increase in mortgage rates is expected by the end of 2019. As a reminder, the US Fed has revised up its key rates.

For its part, the ECB will stop its quantitative easing policy.

In fact, this policy relates to the refinancing of low-cost banks to offer interest rates at very low rates. Thus, the ECB will surely propose higher interest rates, starting in the second half of 2019.
In the field, a loan will provide a rate of 2% over 25 years and 1.75% over 20 years.

THE INDICATORS TO REMEMBER IN 2019

It will also be important to understand the market analysis factor in terms of location of the property for first-time buyers and investors.

Thus, the location will gain in importance. We must focus more attention on the notion of attractiveness of the area where the property is established. This concerns in particular employment, services and transport.

Finally, there is also a need to monitor the cost of high transfer taxes. In addition, the capital gains tax and local taxation must be carefully analysed.


Admittedly, the housing tax will disappear. However, it is not impossible that the property tax knows an appreciation. In this case, homeowners will witness an overall rise in the acquisition value of their property.

thanks for the time .

Post a Comment

0 Comments