Real estate, an intergenerational asset to create wealth

A positive perception at any age

Home ownership is perceived positively by all generations and current ownership situations. This idea is rooted first of all in the common and constant feeling, whatever the age, of being at home according to 67% of the people questioned by Elabe for Crédit Foncier.

Regardless of age, home ownership is also seen as a way to build wealth for one's own future (49 % total quotes) and that of one's children (54 % total quotes), and as a way to secure one's situation for retirement (50 % total quotes).

We see here the importance of real estate in the creation of a patrimony. This characteristic being found most often in the decision of rental investment in particular in the Pinel law. Governmental device allowing to constitute a real estate heritage by defiscalising a part of these taxes (cf. Law pinel government).

Home ownership is also a means of independence for 37 % of respondents across all age groups. Among young people in particular, it is "a source of pride" (36 % of quotes among 18-24 year olds) and "a sign of social success" (27 % of quotes among 18-24 year olds). It is considered "useless" by only 3 % of the people interviewed.

Real estate, an investment favored by savers

The stone remains clearly the preferred and privileged investment by the French, thus, the share of the real estate in the heritage of a French saver is of 66 % of the total heritage.

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Questioned by Elabe, 7 French people out of 10 affirm that they would make the choice of the stone if they received a significant sum of money. 33 % through rental investment such as the Pinel law .(45 % among 18-24 year olds vs. 19 % among those 65 and over), 30 % by buying their primary residence and 9 % a secondary residence.

While the choice of the function of the property varies greatly according to the respondent's asset situation, the choice of real estate is invariable (68 % among current owners of their main residence, 42 % favoring rental investment; 79 % among those renting their home, 58 % favoring the purchase of their main residence).

The share of average financial assets is much lower than that of real estate assets, although it increases with age, but to a much lesser extent than real estate assets. This is due to the fact that households take on debt to build up real estate wealth.

Overall, financial wealth remains lower than real estate wealth at all ages.

Low rates to the rescue of real estate

French households cite difficulties resulting for the most part from the rise in real estate prices and a decline in their purchasing power, but they are also aware that lower interest rates make it easier to buy a home. 68% of French people who say it is easy to buy a home cited interest rates as a favorable factor. This phenomenon, as perceived by households, is particularly powerful, since in France, the drop in interest rates has made it possible to increase by 30 %, between 2008 and 2016, the amount of property a household can acquire for the same monthly payment.

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