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Works: one in five co-owners finance on credit

August 8, 2019 0 Comment


According to a recent study by Fontier, living in condominiums is still popular with residents. In old properties, a large part of the renovation operations is financed by the credit works of the co-owners.

The main lines of the study on condominiums

The main lines of the study on condominiums

On the occasion of the Salon de la Condominium, which took place on 21 and 22 November, Fontier published a study on the relationship of French owners face-to-face their co-ownership. Among the main lessons to be drawn from this: 71% of co-owners say that they are generally satisfied with this type of housing, which gives them the benefit of shared management and maintenance costs. This probably explains why the share of condominiums in the housing stock continues to increase, from 20% in 1988 to 28% today! There are more than 9.7 million homes that are now members of a condominium, the third is located in the Paris region… In addition, about half of the condominiums are occupied by their owners, while the others are either rented or used as second homes, are currently vacant.

What financing for work in condominiums?

What financing for work in condominiums?

However, there are points of friction advanced by the co-owners, believing that it is often difficult to reach consensus with other occupants or lessors, and judging the charges too high. It is in particular the collective charges of heating and works that seem to be the main point of tension on the part of the co-owners. Moreover, the use of credit work (which is a type of credit conso) is now widely used to perform the work, since 21% of co-owners take out a loan to finance all or part of major renovations!

Co-ownership: What to finance with the credit works and at what rate?

Co-ownership: What to finance with the credit works and at what rate?

The credit works can be supplemented by aids of public authorities like the eco-loan at zero rate. In particular, a work loan can cover the part of the co-owners when replacing the heating system, or the facelift with reinforcement of the insulation in the passage. The rates of credit work currently proposed are very attractive : 1% on average for a loan of 5,000 to 10,000 euros over 12 months, 3.18% over 36 months, and 2.98% under 15 000 over 48 months, according to the figures from Credit Guide.