Contact
Contact
Dordogne Valley (S Corrèze, & N Lot)
Head Office, 19120, Puy d’Arnac
T +33 (0)5 55 28 46 40
M +33 (0)6 62 28 02 25
E-mail
Skype allez-francais
Poitou Charentes & Vendée (Departments 16, 17, 79, 85 & 86).
T +33 (0)5 49 27 01 22
M +33 (0)6 73 89 73 09
E-mail
Dordogne (Perigord Vert), Charente & Haute Vienne
T +33 (0)5 53 56 09 35
M +33 (0)6 88 20 70 48
E-mail
Gascony (Haute Garonne, Gers, Tarn, & Tarn et Garonne)
T +33 (0)5 55 28 46 40
M +33 (0)6 62 28 02 25
E-mail
General Enquiries (Sales & Purchase)
T +33 (0)5 55 28 46 40
or +33 (0)5 53 56 09 35
or +33 (0)601 45 18 49 French clients
E-mail
Our Blog
February - the month of romance -
Why now is the time to spring clean your agents ! -
Vote on Brexit deal must wait until 2019 -
Return of inflation in France: going into debt saves
In the midst of a purchasing power crisis, the real estate purchasing power in France’s ten largest cities has been on the rise for the past 10 years. In fact, in taking out a loan to acquire their housing, French buyers ultimately increase their wealth due to negative real rates. Currently, borrowing rates posted and used by banks remain stable at an all time low level of 1.55% over 20 years. The return of inflation (2%), however, is changing the game yet again, allowing households to earn money by going into debt.
For example, a household that now owes €200,000 at 1.55% over 20 years will have a monthly mortgage payment of €968. Assuming that inflation remains stable at 2.2% over the term of the loan, the monthly payment of €968 would only be worth €625 in real currency in 20 years, a decrease of 35%. All in all, the happy owners would have finally repaid only the equivalent of €188,000 at the end of their 20 year term, compared to €233,000 without inflation.
The real borrowing rates are therefore negative, at -0.7% !
We are able to offer exceptional mortgage deals via our dedicated mortgage broker in France
