Is it the right moment to buy or sell? That is a question that owners or buyers often ask themselves when it comes to a real estate property. It requires taking into account numerous aspects like the fluctuations of the mortgage rate or, also, the evolutions of the aids granted to buyers by the government. De Cordier Immobilier delves for you into the trends of the real estate market for 2016
An optimal mortgage rate
According to the study of the Observatoire Crédit Logement/CSA published on February the 2nd, the mortgage rates are back on a downslope , their average now being around 2.15%, which means lower than on December 2015 when the rate was said already to be at its lowest. This fall comes from the decline of the government bonds, an indicator upon which the banks base themselves to fix their fares, and also because of a stronger desire from the bank sector to facilitate homeownership.
It thus can be noticed that the mortgages are not only more numerous but also granted on longer length of time which enable many families to buy a house or a flat that was out of their reach in another less favourable economical context. Of course, a low mortgage rate implies that it can rise up again. It is pretty difficult to forecast when this would happen, so if you consider buying a flat or a house, do not hesitate to negotiate right now your mortgage.
Numerous measures are favouring a first acquisition
Becoming an owner for the first time is not always an easy thing to do when the market is tight. Nonetheless, several measures now exist that, beyond interesting mortgage rates, ease the acquisition of a property.
In 2016, the conditions of the zero per cent rate loan, as well as the ones for the eco PTZ, have been eased. The PTZ has been widened to the entire territory and its maximum amount has been raised up as it can now contribute to up to 40% of the financial plan of a real estate transaction. That is pretty good news for first-time buyers.
Rental investment eased
The device Duflot-Pinel has also been eased: it allows benefiting from tax deduction whether you buy in a new construction or an old property with heavy renovation works. Formerly, it concerned a quota per building, which has been completely suppressed in 2016. It is a measure that encourages strongly investment for rental.
We remind here concerning this that in 2015, the 2/3 of the properties bought in new construction were destined to rental investment, it is then a proportion that should not be neglected.
A slower process to buy in real estate
If prices in real estate tend to stabilise in most areas according to the last surveys, the average time to go through the actual process of buying tends to increase, often reaching a period of 100 days. The buyers-to-be wish to take their time to visit many properties and compare the offers.
Those were the main trends for real estate in the beginning of 2016. If 2016 is for you the year to do a first acquisition or a new one in either new or old properties, please do no hesitate to contact the team De Cordier Immobilier. Our real estate office, specialised in the areas of Evian and the Chablais, can guide and advise you in your project.