Do you live more than two years in a dwelling? Buy it!

More than ever, the French are banking on real estate! According to the LPI-SeLoger barometer published at the end of August, transactions grew by 17.9% over the summer. The historic record of last year, with 965 000 buyers, should be exceeded this year. The reason? The level of interest rates (1.14% over 20 years according to Crédit Logement / CSA). They are so low that it soon becomes more interesting to buy one's apartment than to rent it.

According to a study by the broker Best rate, the Parisian-Today in France unveils in exclusivity, just stay more than a year and nine months in an apartment for the status of owner becomes a good deal. "Extremely low interest rates have significantly reduced the cost of borrowing. And, in addition to this year, real estate prices have increased little, "said Maël Bernier, Meilleurtaux spokesperson. "It's a record that will be hard to beat. "

36 cities screened

To arrive at this conclusion, the broker Best Rate has reviewed the real estate market – acquisition and lease – in the 36 largest French cities. For the sixth consecutive year, he compared the rental or purchase of a 70 m² apartment.

It took into account for the purchase, the price per square meter, notary fees, the payment of the property tax and the total cost of a loan (10 000 euros of contribution, interest rate of 1.1 % over 20 years, insurance of 0.25%). For the lease, the broker looked at the amount of the rent and what the 10,000 euros which were not devoted to a contribution, report to him.

For the purchase of a 70 sqm, it is financially more interesting to buy from the moment you plan to stay at least 1 year and 9 months. For comparison, it was 2 years and 9 months in 2018 and … 5 years in 2014!

"By removing the three big cities, that are Paris, Lyon and Bordeaux, the necessary period of detention falls even to one year and three months," says Maël Bernier. However, according to the Clameurs rent observatory, tenants of three rooms (65 m²) stay on average three years and nine months in their home. In the majority of cases, therefore, the operation appears profitable.

Medium-sized cities are the most interesting

In Mulhouse, Perpignan and Le Havre, the purchase of a 70 m² apartment proves to be more judicious than renting in only eight months. In Reims, Saint-Etienne and Tours, it's just over (11 months).

More generally, in 27 out of 36 cities, the investment is profitable in less than two years. Among them, important cities like Lille (1.3 months) or Marseille (1.3 months). "These are for most cities where the price per square meter does not exceed 4,000 euros," says Mael Bernier.

On the other hand, for the most attractive cities, such as Bordeaux, Lyon or Paris, it is better to rent here. It is indeed necessary to remain 6.5 years in Bordeaux, 7.6 years in Lyon and 8.2 years in Paris in the same apartment to make the operation profitable.

For a smaller apartment, 30 m², it takes an average of two years and one month in France for the operation to become profitable. If you are looking for this type of property, do your calculations well. Because, on average, tenants stay in their studios for 33 months. That is 2 years and 9 months, not far from the fateful threshold. A question will be decisive in your choice: Do I have the courage to buy an apartment, with its lot of hassle, for so little savings?