What can a €1000-a-Month Mortgage Buy in Paris Real Estate and throughout France?
Meilleurtaux.com has released their city-by-city purchasing power summary for November. Where can a €1000 a month 20-year loan buy you a spacious 156m2 house, and where will it leave you with a mere 25m2?
Fyltyr reported on an early study by Meilleur Taux in October 2015 that looked at buying power in 10 major French cities. The site’s most recent statistics add 10 new cities to the list, that make up the top half of places where a buyer’s euro will go the furthest.
The most bang for your buck is in the town of Saint-Etienne, a short drive from Lyon. There, a loan with €1000 monthly mortgage payments will buy a 156m2 home. Next are Le Mans, most famous for its automobile endurance races each year, where the same will secure a 141m2 house; Nimes, on the Cote d’Azur offering 116m2 for that price; and then Le Havre, a coastal city in Normandy where 112m2 can be yours.
Unsurprisingly, Paris comes in last, as it did the year before. With a loan of €1000 a month, buyers can enjoy a 25m2 apartment. Nice, the next-most-expensive destination, is half the price, with a 52m2 figure. Paris’s average price/m2 is €8,508; on the other end of the spectrum, Saint-Etienne has an average of only €1,367.
Mortgage rates are fairly consistent throughout France. For 15-year loans, city property buyers are being offered rates of 0.90-0.95%; for 20 years the figure ranges from 1.10-1.20%. 25-year loans in almost all cities have an average rate of 1.42%, with Toulouse, Reims, Bordeaux (all 1.25%), and Lille (1.30%) the exceptions. Reims has the lowest rates across the board.
Nationwide, rates are expected to rise soon; so buyers who have purchases planned would be well-advised to wrap up their dream property and the underlying financing soon.
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