Buying real estate in 2024 is not the same as in 2021. Credit rates have risen, the zero-interest loan rules have changed, and the energy diagnosis now affects property values. Before signing anything, it’s better to understand what has changed and what really matters in a file today.
Energy Performance Certificate and Energy Renovation: The Filter That Changes Property Value
You’ve spotted an old apartment at a good price in a medium-sized city. Before celebrating, check its energy label. Since 2023, properties rated G are gradually banned from being rented out. F will follow, then E. This regulatory constraint has a direct effect on the resale market.
You may also like : How to Succeed in Your Real Estate Project: Tips and Tricks to Get Started Right
A property poorly rated on the energy performance certificate is negotiated significantly below an equivalent well-insulated property. For a buyer, this can represent an opportunity if the cost of renovation remains manageable. For a rental investor, ignoring the energy performance certificate means buying a property that will soon be uninhabitable.
In practice, energy renovation becomes a selection criterion from the visit, not a topic to be addressed after the purchase. Asking for energy bills, checking the insulation of the attic, identifying the type of glazing: these reflexes allow for estimating the renovation budget even before making an offer. The resources available on www.okamag.fr detail these parameters for different types of real estate projects.
You may also like : The best tips to optimize your online job search in 2024
2024 PTZ Reform: Which Projects to Focus Your Purchase On
The new zero-interest loan, effective from January 1, 2024, has reshaped the landscape of supported projects. Aid is now focused on two areas: the purchase of older properties with renovations and new collective housing in tight zones. New individual houses are largely excluded from the scheme.
Why does this change matter so much? Because the PTZ often represents the portion of financing that allows for completing a first purchase without a massive down payment. Without it, some projects on the outskirts become unrealistic.
Two Concrete Scenarios for First-Time Buyers
- Buy an apartment in a medium-sized city, rated D or E on the energy performance certificate, and finance the renovation with the PTZ. The purchase price is lower, the aided loan covers part of the renovation costs, and the property increases in value after renovation.
- Opt for a new apartment in a tight zone (large urban areas), where the PTZ remains accessible for collective housing. The price per square meter is higher, but energy costs are low and resale is smoother.
- Give up on new individual houses in relaxed zones if the budget relies on aided financing. The calculation no longer works without the PTZ in this scenario.
This reform pushes buyers towards renovation and urban areas. It’s no coincidence: public authorities are looking to limit land artificialization while rehabilitating the old housing stock.
Mortgage Rates and HCSF Rules: What Has Changed for Borrowers
Interest rates have nearly quadrupled between early 2022 and the end of 2023. Households’ borrowing capacity has dropped proportionally. A couple who could borrow a comfortable sum three years ago now obtains a significantly reduced amount for the same monthly payment.
The HCSF relaxed its rules at the end of 2023 to reopen access to credit. Banks can now deviate a bit more from the debt ceiling of 35% and the maximum duration of 25 years, particularly for first-time buyers and new purchases. In practice, files that had been stuck for two years are moving again.
Preparing a Solid Loan Application in 2024
The relaxation of the HCSF does not mean that banks are lending without scrutiny. The application must be impeccable. Here’s what makes the difference:
- A personal contribution, even modest, that covers at least the notary fees. Without a contribution, most institutions refuse the application.
- A clean banking management over the last three months: no overdrafts, no ongoing consumer loans, regular income.
- A sufficient remaining balance after repaying the monthly payment. This criterion takes over when the debt ratio is close to the ceiling.
- Demonstrated professional stability: confirmed permanent contract, seniority in the job, or independent income over two to three years.
Comparing offers from several banks remains the most profitable approach. The difference between two proposals can represent several thousand euros over the total duration of the loan.
Stabilization of Real Estate Prices: Where to Find Opportunities in 2024
After the continuous rise from 2015 to 2022, real estate market prices are beginning to correct. This decline is not uniform. Major metropolitan areas are holding up better than rural areas, and well-served medium-sized cities offer the best price-living environment ratios.
A purchase in 2024 is negotiable. Sellers, faced with a declining volume of transactions, are accepting offers below the listed price. This context benefits patient buyers who know their exact budget and are not hesitant to make a reasoned offer.
Rental Investment: Recalculating Profitability
With higher credit rates, gross rental profitability is no longer sufficient to evaluate a project. It is necessary to factor in the real cost of financing, any renovation costs to meet energy standards, and applicable taxes. A profitable rental investment in 2024 takes the energy performance certificate into account from the initial calculation.
Strategies that worked with rates close to zero are no longer viable. Buying high to rent moderately while counting on long-term capital gains exposes one to negative cash flow for years. Prioritizing properties to renovate in cities where rental demand remains strong allows for balancing the project from the first years.
The 2024 real estate market rewards buyers who prepare their applications in advance, who integrate energy constraints into their search, and who are willing to reconsider their geographical criteria. The negotiation window is open, but it requires mastering the new rules of the game before diving in.