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Is it still easy to invest in real estate on credit?

2023-06-02T12:01:39.917Z

Highlights: Investors used to borrow up to 110% of the amount of their acquisition, they are now reduced to the minimum portion. The weakening of tenants, linked to the health crisis, then to the inflationary crisis, has changed the situation. The High Council for Financial Stability (HCSF) has defined a new framework for the issuance of real estate loans, which penalizes investors in several respects. Previously, when the borrower considered a monthly repayment of 1000 euros, for a rent of the same amount, the bank estimated...


OUR ADVICE - The health crisis, then the inflationary crisis have changed the situation somewhat. But tricks exist.


The tightening of the conditions for granting loans by banks strongly penalizes investors. While they used to borrow up to 110% of the amount of their acquisition, they are now reduced to the minimum portion.

1. Why are investors considered "at risk"?

There was a time when an investor obtained credit more easily than a first-time homebuyer. As rents repay a large part of the loan, banks considered the risk low. The weakening of tenants, linked to the health crisis, then to the inflationary crisis, has changed the situation. In addition, the High Council for Financial Stability (HCSF) has defined a new framework for the issuance of real estate loans, which penalizes investors in several respects. "First, the calculation of their debt ratio has changed," explains Cécile Roquelaure, director of studies at Empruntis. Previously, when the borrower considered a monthly repayment of 1000 euros, for a rent of the same amount, the bank estimated ...

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Source: lefigaro

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