LP Promotion 9:00 a.m., February 28, 2024
The year 2023 was marked by some concern among potential buyers due to the increase in borrowing rates.
However, the forecasts for 2024 look much more encouraging with a downward trend in real estate rates, as revealed by a Strafi study carried out for the real estate developer LP Promotion.
Without further ado, discover expert advice to take advantage of this opportunity in 2024.
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Towards a drop in real estate rates in 2024?
According to Strafi Conseil, 2024 looks particularly promising for borrowers.
And for good reason, experts report a
stabilization of real estate rates
for the first half of the year, followed by a gradual decline.
This situation correlates with the
slowdown in inflation
observed in recent months.
In December 2023, the ECB's inflation forecasts for the year 2024 were revised downwards, from 3.2% (September forecasts) to 2.7% over one year*.
As a result,
mortgage rates
would have recorded a drop of 0.1 point since the start of 2024, with a forecast of a constant decrease of 1 point throughout the year.
Good news for French people aspiring to become owners in 2024!
5 tips from real estate experts to take advantage of this drop in real estate rates
While the increase in borrowing rates caused concern among potential buyers in 2023, the downward revisions of these figures should finally allow them to realize their
real estate project
.
As long as you make the right decisions!
Discover 5 expert tips to take advantage of this drop in real estate rates in 2024.
Tip #1: Negotiate the price of housing
In 2023, the
real estate market
has undergone major developments, creating a situation where the supply of properties exceeds demand in 2024. This situation represents a golden opportunity for potential buyers, who can negotiate the purchase price of their property .
At least that's what sector experts encourage you to do, by negotiating up to 10 or even 15% of the price of the property you're targeting.
This negotiation margin is significantly higher than in 2023, when buyers managed to obtain on average a reduction of 8% on
real estate
.
Another important fact to remember: the average duration of real estate loans taken out by individuals has increased considerably over the years.
If in 2011 it was 13.6 years, in 2023 it increased to 23.1 years.
This extension of the repayment period can also work in your favor, by offering you better management of your monthly payments and the possibility of acquiring better quality real estate.
Tip #2: Anticipate the sale now to maintain the value of your property
If borrowing rates decrease in 2024, the
price per square meter
in France also maintains its downward trend.
In order to avoid a depreciation in the
value of your property
, it is recommended to quickly consider selling your home.
To do this, a precise estimate of the property by a professional, whether you are a buyer or seller, is essential.
You can make an
online estimate
quickly and for free using the tools available on many specialized platforms.
This will allow you to correctly assess the true value of your property and make informed decisions.
Tip #3: Invest in rental real estate
Investing in rental property
can be a wise financial strategy during times of low borrowing rates.
And for good reason, lower rates mean more affordable monthly repayments, which can make the purchase of real estate for rental purposes more attractive than ever.
Additionally, demand for
rental housing
remains strong in many regions, providing investors with the opportunity to receive regular income from tenants.
Not to mention the possibility of generating long-term capital gains when the value of real estate has increased!
Are you interested in
rental real estate
?
Get help from a professional to develop an investment strategy adapted to your financial objectives and your personal situation.
Tip n°4: Take advantage of tax exemption schemes
In addition to the
fall in real estate rates
, real estate investors can also benefit from various
tax exemption schemes in 2024
.
These tax incentives aim to encourage investment in
rental real estate
and stimulate the real estate market.
Among the
most popular
tax exemption schemes in France is the
Pinel scheme
, which allows investors to benefit from tax reductions in exchange for renting a new home for a specific period.
If the system has undergone adjustments since 2023 with a reduction in its tax advantage, it is still possible to benefit from the maximum tax advantage thanks to the
Pinel Plus system
applicable to new housing which complies in particular with the latest energy standards.
Tip #5: Monitor developments in the real estate market
As the
real estate market
is constantly evolving, it is more than necessary to stay informed of the latest trends and market developments.
Keeping a close eye on
borrowing rates
,
property prices
in your area, and
changes in real estate legislation
can help you make better decisions.
In addition, it is recommended to regularly consult real estate experts to obtain personalized advice based on your situation and goals.
They can help you adapt your investment strategy based on market conditions.
You would have understood it ;
With
falling real estate rates in perspective
, the year 2024 offers real estate investors unique opportunities.
By following expert advice, you can maximize the benefits of this favorable period and make smart real estate investments.
Source of the article: Strafi study: prospects for the real estate market in 2024
Europe 1 did not participate in the writing of this article