At what price to sell/buy?

Whom are you going to sell ? To position your price, an important element is to know the budget of your target. Who will be able to afford your property?

Since most buyers require the support of a bank, we need to understand how much money can be borrowed.

The amount that can be borrowed depends on the household's disposable income. In other words, the amount that actually arrives in your wallet each month (income, allowances,...).

With information from STATEC, we have calculated the amount that can be borrowed by segment of the population. To do this, we have assumed a 3% loan over 30 years. The debt ratio (the proportion of your income devoted to repaying the loan) used is 40%.

Under these conditions, the graph shows us that only the richest 10% will be able to borrow €1.25M and more.

50% will be able to borrow around €579,000, only 30% will have a loan above €800,000

To obtain the maximum purchase budget, the equity available for the project must be added. If the buyers are relatively young (30-year loan), we can consider a 10% deposit.

Older buyers will probably be able to bring more, but they will have a shorter period loan.

Yes, but in some families the children/grandchildren are helped by parents and grandparents! This is true, but it is the exception and not the rule.

Conclusion: if you have an average house (size, standing) in a location that is also average (not a popular place or an unsolicited area) and you list it at €1M, there is very little chance that it will be sold.

Of course, not all situations can be summed up in a graph, this is to give you an overall trend.

Need to know the value of your property? Call us, it's our job.