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"Small Property Housing" in Paris | To complete "welfare", you must have three generations of "poor"

The "small property right house" in Paris, some people think that it "spends money but only belongs to them for a limited time, like deceiving themselves", and some people think that "it's your own when you buy it, and you can live in it for a lifetime is your home".


What do you think? Are you willing to buy a "small property right house"?



Recently, the Paris city government has launched a new concept of "small property rights house", 5000 euros/square meter (reference: Paris market price exceeds 10000 euros/square meter). The official emphasis is that the purpose is to allow middle-class families to become landlords in Little Paris.

Let's analyze it in detail,

Is this policy really a fragrant bun?


01 The price, in fact, you didn't find it cheap


The government established a new real estate contract model (Bail Réel Solidaire), the principle of which is to split real estate and real estate. "The idea of the measure introduced by the city of Paris (now) is: you buy just the building, the property is 99 years old, and the land remains the property of the city of Paris," explained Paris Deputy Mayor Brossa, who is in charge of housing affairs. The price of buying a new home has dropped as a result.

On the surface, buyers enjoy price benefits, but in fact the government also reduces the value of the original property.




02 99 year lease, in fact, you are a long-term tenant

Buyers must have the necessary connections with Paris, use the house as their main residence, and enjoy the same rights as ordinary homeowners. They can renovate the house and sell or pass on the property (to their children), but it is clearly stated that they cannot be rented.

This means that the "small property right house" policy can only help middle-class families with just need to grab a place in the tight little Paris at a lower cost and a limited time.


03 You will never make money, but the financial burden will be even greater

If the buyer's family no longer lives in the home, it can only be sold back to the government, and the price is based on the inflation rate of the number of years of ownership, not the market price.

The government made it clear: "I won't lose money when I ask you to sell, but I will never make any money"



The specific income standards for middle-class families targeted by "small property houses" are: no more than 4,500 euros per month for a family of three, and no more than 5,000 euros per month for a family of four. The government will approve 500 sets of "small property rights houses" in five locations in Paris. The first batch of 23 properties will be located in the 14th district of Paris, one third of which will be two-bedroom and one-bedroom, and most of them will be three-bedroom and one-bedroom. It is scheduled for 2022. Hand in. The common level for a two-bedroom, one-bedroom apartment in Paris starts at 50 square meters, and buyers are required to pay a monthly land use fee of 2.5 euros per square meter.

Let's do the math: for a three-bedroom apartment of 65 square meters, it is 325,000 euros (not including notary fees). The acquisition was financed by means of an unpaid loan of 1.53% over 25 years, with monthly repayments of around 1,400 euros, along with an additional 130 euro "land usage fee", for a total outlay of more than 1,500 euros. Compared with low-rent housing (the monthly rent is about 1000-1100 euros), the monthly financial burden increases by 40%-50%.


Buyers have to increase their financial burden every month and change from a short-term tenant to a "long-term tenant". What is the practical significance?




04 If you want to enjoy "welfare", you must be "poor" for three generations

"Small property rights" can be transferred to children and descendants, but the income of the heirs must not exceed the legal limit. The ability to transfer to children also seems to be a "welfare", which can maximize the value of the property within limited conditions. But this "benefit" comes at the expense of limiting the income of the children.


The policy seems to send a negative signal of class solidification.


Obviously they are middle class with a certain economic strength, and they can get better resources by tiptoeing. In order to enjoy the welfare, they can lie down with their children in place with peace of mind. The middle class who do not want to keep working hard automatically gives up the opportunity to compete fairly in the real estate market, and the bourgeoisie who seizes the housing stock will win even more effortlessly.


It is intriguing that the additional instructions can be transferred to children, which can be said to be "less harmful but extremely insulting".


*Part of the news information in this article comes from the media, please contact if you want to note your name.

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