A couple signs a compromise for an old apartment rated F on the energy performance certificate (DPE). Three months later, the bank refuses the loan: the debt-to-income ratio exceeds the authorized threshold once the cost of energy renovation is included. This scenario, increasingly common, illustrates how real estate is no longer just about finding a property and negotiating a price.
Buying or renting with confidence today requires mastering rapidly evolving banking, energy, and tax constraints.
Banking behavior and borrowing capacity: what banks really check
Before even looking for a home, it’s wise to examine your own banking file through the eyes of a credit analyst. Mortgage brokers note that in 2024-2025, banks value structured budget management: scheduled savings, low overdrafts, and high disposable income. Income levels alone are no longer sufficient; “banking behavior” carries equal weight in the decision.
Specifically, this means account statements without incidents over three to six months, the ability to save regularly, and contained overall debt. Since 2024, the HCSF’s rules on indebtedness are being applied more strictly by French banks (HCSF report 2024, Banque de France). The result: households’ borrowing capacity is decreasing, especially for rental investors who already have a primary residence loan.
The real estate listings published on the CLE Immobilier website allow for a quick comparison of local market prices with one’s own budget, avoiding visits to properties that are out of reach.
DPE and energy renovation: the hidden cost of buying an old property
Mandatory energy renovation for properties rated G and then F has changed the game in the buying market. Bans on renting the most energy-consuming thermal sieves are already in effect, and the 2023-2024 market studies by FNAIM and the Clameur Observatory show an increase in the sale of poorly performing old properties.
For a buyer, this means two things. First, systematically include the cost of energy renovation in the acquisition budget. A property listed below market price with a DPE of F or G often hides a renovation bill that negates the discount.
Secondly, for a rental investor, a poorly rated property on the DPE simply cannot be rented out without prior renovations. Before signing, check the energy class, request renovation quotes, and recalculate the net profitability accordingly.
Points to check before any old purchase
- The current DPE class and the necessary work to reach at least class E (the required threshold for renting)
- The existence of a multi-year work plan in the co-ownership, which may involve significant calls for funds
- The amount of the work fund already established by the co-owners’ association
- The actual quotes from local contractors, not generic estimates found online
Buying or renting: a calculation that depends on the local market
The 2023-2024 data shows a significant drop in transaction volumes for old properties in metropolitan France, while rents continue to rise in most major cities (2024 Real Estate Transaction Barometer, Notaires de France). This gap alters the “buy or rent” calculation: in the short and medium term, renting becomes competitive in several tight markets.
One cannot apply a universal rule. In a city where purchase prices stagnate and rents increase, remaining a tenant may help preserve savings capacity and invest elsewhere. Conversely, in areas where the price per square meter remains accessible and rental demand is strong, buying to rent retains real asset interest.
The classic trap is to compare only the loan monthly payment to the monthly rent. This shortcut ignores notary fees, property tax, co-ownership charges, non-occupant owner insurance, and especially the opportunity cost of capital tied up in the down payment.
Often underestimated costs in a purchase
- Notary fees, which represent a significant portion of the price in old properties
- Property tax, which varies by municipality and is rising in many areas
- Co-ownership works voted after the purchase, sometimes not provisioned
- Borrower insurance, whose total cost over the loan term often exceeds expectations
Rental investment: real profitability and daily management
Buying to rent remains a strategy for building wealth, provided one does not confuse gross profitability with net profitability. Gross profitability (annual rent divided by purchase price) provides an initial filter but masks real charges: rental vacancy, maintenance, taxation on rental income, potential unpaid rents.
A profitable rental investment is calculated after all charges and taxes, not before. Tax exemption schemes (furnished rentals, micro or real regimes) significantly alter the net result, but they impose constraints on holding duration and rent ceilings that must be integrated from the start.
Property management itself requires time: finding tenants, conducting inventory checks, monitoring payments, managing maintenance work. Delegating to a professional has a cost, but it secures the process, especially when owning a property in a city where one does not reside.
The real estate market in 2024-2025 rewards buyers who do their calculations before visiting, not after. Checking your banking file, estimating the energy renovation, comparing buying and renting in your local market: these three steps, in this order, avoid most unpleasant surprises. The rest is negotiation.