Monday, November 14, 2016

Real estate : the French are rather well off in Europe, Le Figaro

The French spend a part of their income rather less important than many of their european neighbours for stay . They have the benefit of credit rate particularly low.

The real estate market smiles rather to the French. A study carried out by Crédit Foncier and published this Monday, has studied the respective weight of the real estate in the budget of european households, and reviewed various aspects of the national markets. The balance sheet is quite favourable to the French. These volunteers contribute to the housing 18.3% of their income, against one-third for the Dutch and the Germans, and one-quarter to the British. Only the Italians spend less than the French in this item of expenditure.

“These differences can be explained in large part by the proportion of tenants in the private sector, and owners who have not yet finished paying back their loans, explains Nicolas Pécourt, Credit Foncier. These two categories of people are those who spend the most to stay. Gold in Italy, more than half of the population is completely living in his own home and has nothing to repay. This explains that the Italians are spending less for housing. This high proportion is linked to a very strong culture of ownership in the countries of the South, and the fact that many become owners through an inheritance”.

In France, only 10% of the population has finished to repay his housing loan. In contrast, 15% of the population enjoys a rent subsidized through the social housing (compared with 10% in the EU), which explains that the French spend, on average, less than their neighbors. Tenants in the private sector, on the other hand, make a concerted financial effort is very important in France, higher than 50% of all households.

in Addition to the weight of the social housing, the French also get the benefit of interest rates are particularly low. To finance their housing, they go into debt on average to 2.1%, against 2.9% in the netherlands, or even 2.6% in the United Kingdom. Low rate can be explained mainly, according to the Crédit Foncier, by the fierce competition between France, the establishment of the bank transfer for the conquest of the future purchasers. In France, households take on debt also for shorter periods – 19 years on average, compared with more than 25 years with most of our neighbors. The average duration of the credit is up to 25 years in Germany and in the United Kingdom, 29 years of age in Portugal and even 30 years in the netherlands!

In total, the French are, however, a little less often homeowners than their neighbors. 65% own their homes compared to 70% in average in Europe. But the surface gained is exactly in the average of the other countries, with 102 m2 owned, and the number of inhabitants per dwelling (2.3 people on average). These good financing conditions, the high share of social housing and the existing aid allow young people to leave the parental home at age 24, as in Germany, the netherlands and the United Kingdom. In Italy, in Spain and Portugal, it is necessary, however, to wait until 29 or 30 years to leave the family nest. In Spain and Portugal, the very high unemployment rate explains, in part, these departures and very late.


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