Inflation: Who still has an interest in getting a mortgage? Live your money better

Who can still borrow and for what purpose? Response items with Vousfinancer.

Inflation is breaking records, while credit rates average 1.5%. The situation has thus changed dramatically within a few months, surpassing multi-year sluggish inflation and the credit environment is rock bottom. However, some profiles are still interested in using the credit, according to broker Vousfinancer. Which ? It all depends on the condition of the borrower, and – possible – salary developments in the future. ” In times of inflation, it is interesting to buy, because the monthly repayment of the loan remains constant throughout the term of the loan, so its relative weight decreases compared to other expenses, but especially in the general budget of the family if the borrower’s salary increases with the key to a lower debt ratio », refers to the credit broker. Muslim does not apply Only on the condition that income increases, ideally as much as inflation, which is far from always true ».

10-year government bond rates have risen excessively lately, but are stabilizing around 2%. After rising to 2.35% in mid-June, they returned to their level in April 2014 when credit rates were above 3.3%. Thus, assuming a salary increase of 2.5% per annum, the debt ratio for a base salary of €3,500 and a monthly payment of €1,000 goes from 28.6% to 22.9% in 10 years according to the broker. However, lower borrowing capacity and higher real estate prices are also affecting. “If the increase in the minimum wage in recent years still makes it possible to compensate in some cities for higher property prices thanks to lower prices also, this is no longer the case.”Sandrine Allnier, Director of Studies and spokeswoman for Vousfinancer, analyzes.

Inflation and rising rents

Whatever the case, investors are doing well, thanks to a reassessment of inflation-classified rents by the Rental Reference Index (IRL). Over the course of a year, it is up 2.48% after +1.61% in the previous quarter. In the current context of inflation, the rally was supposed to continue and accelerate in the coming months. Although the government has its limit of 3.5%, “The increase in rents in times of inflation remains effective. Thus, for investors, all other things being equal, the monthly payment of the loan will remain constant for the life of the loan, but the rents used to pay it up partially increase, thus reducing the monthly saving effort.According to Sandrine Allonier.

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