Unlike other investments that require having funds to invest, rental investment allows financing through mortgages. “The ideal is to ensure that the amount of the rent covers that of the monthly payment of the loan and that the latter is taken only once the rent has been paid. In this case, the operation finances itself., observes Bertrand de Raymond, founder of Capcime, specialist in rental investment in the old. Not to mention the unforeseen charges: repairs to be made in the property, taxation… But to benefit from this system, you still have to convince your bank to agree to the loan.
Banking establishments must be very strict on the level of indebtedness: credit must not represent more than 35% of household income. Making a rental investment therefore generally implies having repaid your main residence in order to remain below this threshold.
However, it is possible to be part of the 20% of bank files that can derogate from this rule, “but it is the best profiles with a very good contribution and a high level of living that benefit from this derogation”warns Ludovic Huzieux, co-founder of the credit broker Artémis brokerage.
The revalued wear rate
Another difficulty: borrowers can be blocked by the rate of wear. Remember that this rate is the maximum at which a bank can lend and it includes all credit-related costs: interest but also administrative costs, the cost of loan insurance covering the death and disability of the borrower . This maximum was revalued at the beginning of October by the Bank of France 3.05% for loans over twenty years old and 3.03% for loans shorter than this period. But it is not certain that this will be enough if the rates continue to rise in the coming months.
“If the bank gives you its agreement, go for it even if the rate seems a little high” – Maël Bernier, spokesperson for the broker Meilleurtaux
The Housing Credit Observatory indicated that the average rates already reached 1.82% at the end of August 2022, against 1.05% in August 2021. And over twenty-five years, the longest period authorized, the rates were at 1 96% last August, against 1.17% a year earlier.
This level of rate added to the health insurance risks bringing the borrower dangerously close to the maximum authorized. Especially since landlords invest on average from the age of 45, according to the National Agency for Housing Information (ANIL), and they therefore pay more for their borrower insurance. “If the bank gives you its agreement, go for it even if the rate seems a little high compared to what was offered a few months ago! Banks have no room for negotiation at the moment”insists Maël Bernier, spokesperson for the broker Meilleurtaux.
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