Staying a tenant or investing in real estate … How much do you have to earn to invest? And in which city in France?
Becoming an owner is for many a goal of life and this love of stone has been reinforced by the effect of confinements, teleworking but also to secure one’s future. French savings increased significantly during the health crisis, loan interest rates remained low, which led many French people, increasingly young, to buy real estate.
With one particularity, however. Indeed, more and more French people who acquire property continue to remain tenants of their main residence by preferring to make a rental investment. With the real estate prices soaring in some large metropolises, those who cannot afford to buy a main residence in the city where they work, thus prefer to make rental investments in cities where prices are higher. accessible, with the necessary contributions to obtain a less important loan.
But how much do you have to earn to do such an operation? This is the question to which the French rental investment platform Beanstock – which makes it possible to buy and manage investment goods online, tried to answer. The platform launched in May 2020 wanted to know what was the minimum income necessary to become an owner while remaining a tenant of his main home.
Beanstock has expertly aggregated thousands of data taking into account several parameters:
- The amount of the current average rent observed in the cities studied
- The average profitability of future rent in the chosen city
- The maximum authorized debt ratio
- The loan rate granted is 1.20%
- The mortgage lasts 20 years
- The investment is made with a contribution of 15%
- Notary fees are set at 8%
- The future owner remains the tenant of his main accommodation
In Paris for a 13m2 room, the investor will have to receive income of 3,784 euros gross per month.
Le Havre and Perpignan are two cities which allow French people with lower salaries (2085 and 2039 euros respectively) to access the property of an 18m2 via a rental investment.
“Driven by the continued interest of the French for rental investment, our platform is on the rise and is experiencing strong growth in demand for the properties that we put online. We thought it would be useful to carry out this study to show French people who are still hesitating that it is possible to become an owner ”, declared Alexandre Fitussi, co-founder of Beanstock.
“In addition, rental investment is no longer the prerogative of 40-year-olds. More and more young workers are building up capital, and know that real estate is a resilient product over time. In order to build up assets while maintaining their quality of life, they remain tenants of their main residence, which would have been too expensive to purchase anyway, and prefer to invest in cities where the rental potential is significant ”, add Emma Malha, co-founder of Beanstock.