Real estate: 70m2 in Mulhouse, 68m2 in Saint-Etienne… with a rate of 4%, what can you buy by earning a minimum wage ?

9 m2 à Paris, mais 68 m2 à Saint-Étienne. MAXPPP – Vincent Isore

While the rates are today around 4%, French people earning a salary of less than 1,400 euros per month can still become owner. 

Despite the surge in rates which have gone from 1% to 4.3% in two years, the purchase of a property is not necessarily intended' nbsp;only the most well-off. Even if obtaining a mortgage loan, when you receive the minimum wage, is more difficult, it remains entirely possible.

"The share of our customers who earn less than 1,500 euros per month is 2%. This is certainly a small but not negligible share", underlines Olivier Carreau, director of strategy and operations of the online broker Pretto, interviewed by The Parisian.

More than 180,000 euros for a couple

According to calculations by Courier Pretto, with a rate of 4.22% over twenty-five years, a single person receiving a minimum wage can borrow 90,730 euros. Enough to afford only 9 m2 in Paris, 18 m2 in Nice or even 19 m2 in Lyon. But in the countryside, where prices remain cheaper, the possibilities are more numerous. In Limoges for example, it is possible to buy 55 m2, in Saint-Étienne 68 m2, and even 70 m2 in Mulhouse.

For a couple, with two people on minimum wage, the maximum monthly payment that it is possible to devote to repaying their property loan increases to 979 euros, or more than 181,275 euros of capacity loan.

When to buy ?

Is it necessary to not wait and become an owner quickly ? This is the question that potential buyers on the minimum wage are now asking themselves, while rates have been falling since December. With a rate of 4%, the borrowing capacity of an employee on the minimum wage will increase to 93,000 euros, and even to 98,000 euros if the rates are higher. fall back to 3.5% by the end of 2024. To this can also be added a possible revaluation of the minimum wage.

"There is a trade-off to be made: on the one hand, borrow today at a higher rate but be able to make a good negotiation on the price of the property and renegotiate its rate in a few months and, on the other hand, wait at the risk of seeing real estate prices rise again", analyzes Olivier Carreau at the microphone of Le Parisien. For him, the answer is simple: "In my opinion, it is better to buy now because there are great opportunities with properties that have been on sale for a long time. "