Real estate 5 tips for buying significantly discounted housing

Prices that fall but don’t go down. This is an observation we can make when taking stock of 2023 from a real estate perspective. According to data from French notaries, prices fell nationwide 2% for old apartments and 5.3% for Île-de-France itself. The decline is not nearly enough to offset the rise in mortgage rates (2.26% on average, all durations combined net of insurance costs in November 2022 vs. 4.22% in November 2023). Mortgage brokers agree that in one year, buyers lost between 15% and 25% Purchase power. Therefore, the best option for investors while waiting for a drop in rates or a larger drop in prices is to turn to significantly discounted housing. Our 5 tips for finding properties with a discount of more than 15%.


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Goods sold at auction: -15% to 30% of the price

Real estate auctions, notarial or judicial, allow investors to acquire housing sold voluntarily by its owner or forcibly on the basis of a court decision. In general, it is possible to use a discount in the amount 15% to 30% over market value apartments offered in the auction. To access legal auctions, you can check out the Vench online site, which identifies 98% auctions of this type. Are notary auctions available on the immo notaires auction website. As for state auctions, you can find them at éché Depending on the selected auction mode, you will have period of 30 to 60 days to pay for the goods.

Occupied accommodation: -5% to 20% of the price

The idea may seem counterintuitive, but by investing in already occupied housing, you will not only get rent immediately, but you will also have a good chance of paying less for it. The discount is generally spread out from 5% to 20% compared to the market price of the property. It mostly depends on the expiry of the lease. The further away the last-named is, the bigger the discount will be, as you will not be able to change the tenant on the spot. Before buying, make sure that the property is still available for rent after the lease expires. Remember that the Climate and Resilience Act prohibits the rental of housing classified G in the energy performance diagnosis from 1 January 2025. Housing classified as F will follow in 2028, then housing classified E in 2034.


Rental properties: why investing in occupied accommodation is very profitable

Investment in bare ownership: – 30% to 40% of the price

Another good plan in new and old buildings is to invest in bare ownership. The discount from the market price is substantial and ranges from 30% to 40% market value of the property. In bare ownership, you separate usufruct (the ability to use the property and earn from it) from bare ownership (the wall). The amount of the discount will depend on the length of the cut and corresponds to the total amount of rent you would receive if the accommodation were rented out, excluding tax. You are also exempt from real estate tax and property tax unless you regain full ownership of the home. Please note that by investing in bare ownership you will not be able to earn rental income for the duration of the distribution. This investment is therefore primarily aimed at investors who have little money saved and do not need immediate additional income.


Real Estate: There are many advantages to investing in bare property, here are some

Invest in flexible

Another good plan to invest with lower costs: bet on flexible. These ground-floor apartments have a basement to equip or already equip. A feature that makes flexible apartments on the market cheaper to acquire and at the same time popular with renters looking for accommodation. With the same area, the price per square meter of accommodation on the ground floor is lower by 10% to 15% compared to a 2nd floor apartment or in some cases more. A scale is made for the basement part, which takes it into account according to the degree of its habitability. There will be a discount on this part 10% to 50 compared to the value of the ground floor. For example, a flexible apartment in the 17th arrondissement of Paris, rue Marguerite, 33 square meters will be offered for sale at 175,000 euros. In the same district, a house of the same size located on the 4th floor will be offered for sale 330,000 euros.


Property rental: Flexiblex, a very profitable investment… but with conditions

Focus on a lifetime annuity

The last option to buy housing much cheaper than on the market: investing in real estate for a lifetime annuity. The mechanics are simple. On the day of the sale, you will pay an amount called a bouquet to the older seller, which you will supplement with an annuity every month, the amount of which depends, among other things, on the seller’s life expectancy. The higher the annuity, the lower the bouquet and vice versa. For example, housing is worth it 300,000 euros sold by a man 75 yearsyou pay for the bouquet 40,000 euros and an annuity of 600 euros per month. Taking into account the average life expectancy of men in France, the operation should not cost you more than 150,000 euros. In the case of an occupied life annuity, the seller can remain on the premises. In the case of a free life annuity, you can already place a tenant there. However, if you opt for an occupied life annuity, be careful that the accommodation meets energy standards. Otherwise, when you get it back, you run the risk of having to do an energy renovation without being sure that all the support systems to do the job today will be there tomorrow. Do not hesitate to carry out work upstream to ensure that you can rent your property later if necessary.


Life annuity: principle, conditions and calculation

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