Succeed in the purchase of your main residence

Why buy your main residence?

Buying your main residence has 4 main advantages, it allows:

1. to take advantage of a place adapted to your needs,
2. to build its heritage,
3. to take advantage of certain fiscal arrangements,
4. to capitalize on the real estate leverage effect,

To take advantage of a place that you can set up

Living in a home that belongs to you is a source of well-being, comfort and freedom. While tenants must obtain the owner's agreement to carry out certain works or arrangements, Buying your main residence offers the freedom to modify your home to adapt it to your needs.

Whether it's simply repainting a room or undertaking major renovations, you are free to transform your new living space as you see fit. This freedom gives you the opportunity to improve the comfort of the home and the well-being of its occupants.

To build your heritage

Becoming the owner of your main residenceis to lay the cornerstone of one's assets (any management consultant would say). Unlike rent, which represents a flat loss, each monthly mortgage payment is a form of savings that increases your assets.

In fact, repaying the loan is often equivalent to the amount of monthly rent. The major difference lies in the fact that at the end of the loan, you own real estate. Becoming the owner of your roof, therefore, it means combining the useful with the pleasant: housing while enriching yourself.

Of course, being a homeowner is not without obligations. You have to bear additional costs for years such as property tax, condominium fees (if you live in a building), any work or maintenance costs... These expenses must be offset by the benefits of a real estate asset that can open doors for you. For example, a property in your possession can be used as collateral for a new loan, whether for a rental or business project.

If done well, Buying your main residence is a real heritage springboard. With Kyka at your side, every detail of your project is under control. Following the signing of a research mandate, one of our real estate project managers accompanies you in the search for the ideal property to renovate so that you can move into a home that suits you and build your assets on solid foundations.

“Kyka is an incredible experience and team! I am the happy new owner of a property entirely sourced and refurbished thanks to Kyka! A first purchase is complicated and scary, so being supported under these conditions is simply the best possible experience!”
Jordan Lorho

To take advantage of tax benefits

Being a source of considerable wealth, the State has put in place several tax systems to encourage French people to invest in real estate.

The main advantage of a main residence is the exemption from capital gains on resale. Unlike second homes, whose sale is subject to tax, you keep all the profit in the event of an increase in value on your main home. Thanks to this exemption, you can more easily sell your primary residence and buy another bigger.

Other measures also reduce the taxation of owners of a main residence. For example, during a transfer, the heirs of a main residence benefit from a 20% reduction on the market value of the property when calculating inheritance tax.

Capitalize on the real estate leverage effect

Real estate leverage is a powerful weapon to maximize the profitability of your investment. By borrowing to buy your main home, you are using the bank's funds to generate much more wealth than your initial investment.

Buying an apartment or a house with construction to carry out is an excellent strategy because renovation makes it possible to considerably (and quickly) increase the value of a property. In the era of energy transition, improving the DPE of a home by one or two levels considerably influences its value on the real estate market.

Let's take a concrete example: imagine that you buy a property for 250,000 euros, to which you add 50,000 euros in renovation work. With a contribution of 30,000 euros, you borrow 270,000 euros over 25 years (at a rate of 3.5%), i.e. a monthly payment of around 1,400 euros. After six years, you sell this property for 350,000 euros and realize a gain in value of 40% compared to the initial purchase price (i.e. 16.6% including the work).

Thanks to this successful resale, you generated 50,000 euros in net profit by having only invested 30,000 euros out of your own pocket. In terms of gross profitability, this equates to 170%, or 28% per year. A rate of return that is difficult to match with stock market investments!

In addition, during these six years, you have amortized part of your loan. You only owe the bank 170,000 euros at the time of sale. After repayment of the credit and taking into account additional costs (notary fees, property tax, etc.), you still have a net capital of around 160,000 euros. And the icing on the cake: you can reinvest everything in another real estate project since the added value realized on the sale of your main residence is not taxable.

By calling on Kyka, you are supported at each stage of your journey, from the search for the ideal property to the completion of works that increase the value of your property and your comfort.

“I recommend the Kyka experience 100%! No mental load because they manage absolutely everything and the team is receptive to needs and requests, so it makes the whole process very fluid. A big thank you Kyka! 🙂”
Perrine Jouve

When is the right time to invest in real estate?

We often hear the saying that “the sooner you buy, the better.” This reasoning is true insofar as the younger you start repaying, the more quickly you are freed from your financial commitments and you can engage in other rewarding projects over the long term.

That said, making the decision to buy or rent your main residence depends mainly on your financing capacity, i.e. your savings, the stability of your income, and your debt ratio.

However, it should be borne in mind that not all real estate investments necessarily result in financial success. Several factors can compromise the profitability of your project:

• Depreciation of the property : The value of your main residence may decrease over time due to the natural wear and tear of the building, a declining real estate market, or damage caused by natural elements (e.g. sand, water, etc.).
• Amount of ancillary costs : Notary fees and taxes associated with the purchase often represent between 7% and 8% of the sale price, which increases the total cost of the investment.‍
• Long-term performance : To realize a gain on resale, it is generally necessary that the property has taken on at least 10% of its initial value. In a context of falling prices, we can ask ourselves whether to Buy in 2025 or whether it is better to wait, especially if you are looking to buy a new property.

Are you wondering how to become a homeowner but you don't know where you are going to live in 2 or 3 years? In this case, a good strategy is to buy an old property and hire a renovation company to refurbish the home. This allows you to quickly increase your real estate value, amortizing acquisition costs more quickly and allowing you to realize an increase in value on resale if you want to move a few years later.

However, without experience, it is difficult to find a property to renovate and skilled craftsmen to design and carry out the work according to your tastes and preferences. This type of real estate project requires a lot of research, knowing how to ask the right questions when visiting an apartment or a house, knowing how to negotiate an attractive selling price, obtaining a mortgage with attractive conditions, carrying out several administrative procedures, managing the necessary renovation and development work...

At Kyka, we offer our customers our expertise at each stage of the purchase and renovation of their main residence:

• Custom real estate hunting : we select for you the properties that correspond exactly to your criteria. We help you negotiate the selling price in order to obtain the best purchase conditions.

• Architectural design : we design each piece according to your preferences, with a constant attention to detail. Your future real estate will be designed to offer you the greatest possible comfort.
• Realization and monitoring of the work : one of our project managers is in charge of orchestrating the work, supervising the various trades and ensuring compliance with deadlines and budgets
• Furnishing and layout : our team accompanies you in the selection, assembly or tailor-made creation of your furniture.
• Optimized sale and resale : in case of resale, we also support you to sell your property in the best conditions. We are in a position to make the most of the homes we have renovated.

With Kyka, you are never alone in your real estate journey. We guide you through each stage with tailor-made attention, so that the purchase of your main residence is an indisputable success and without stress.

“My experience with this team has been exceptional. My architect fully understood my expectations and the project team was always attentive. My project was delivered on time and the end result is fantastic. I am very satisfied with the service received.”
Lyrod Levy

What questions should you ask yourself before buying your main home?

To succeed in your investment and avoid the pitfalls that can make you regret buying a property, it is essential to prepare theacquisition of your main residence. This involves:

1. a rigorous assessment of your financing capacity,
2. the choice of the place and the type of housing you want to buy,
3. the choice between new and old housing or off-plan construction.

Evaluate its financing capacity

Before you start, it is essential to establish a realistic financing plan. This approach takes into account your income, your current expenses and the loan (s) you already have.

In this period of high interest rates, banks are becoming more demanding. Having a stable professional situation and having a personal contribution representing at least 10% of the total amount of the acquisition is almost essential to obtain an attractive loan proposal.

Once you become an owner, don't forget to include ancillary costs such as property tax, condominium fees (if applicable) and any work and maintenance costs into your budget. These additional expenses can quickly become heavy to bear if they were not anticipated.

To support home ownership, the State offers various subsidized loans, each with its own eligibility criteria:

• PTZ (Zero Rate Loan) : reserved for first-time buyers Buying a new home, he can finance up to 40% of the amount borrowed, without interest.
• Conventional loan : granted by the majority of banks, it finances the purchase or renovation of a main residence, without income conditions.
• PAS (Social Accession Loan) : it offers lower interest rates for homes that meet certain resource limits.
• Housing action loan (1% employer) : accessible to employees of companies contributing to the system, it facilitates access to property.

Define the location and type of housing you want

The location of your future main residence is a decisive criterion, not only for your quality of life but also for the valuation of the property on the real estate market. To start, draw up a list of the elements that matter most to you: area, number of rooms, presence of an exterior, orientation, condition of the property, etc. These criteria will allow you to target the properties that correspond to your expectations and your constraints.

It is therefore recommended to choose a neighborhood well served by public transport, close to amenities (shops, schools, health services) and employment areas. A good location will increase the attractiveness of your property, facilitating its resale at an advantageous price.

To make a good real estate investment, target cities that benefit from economic, cultural or tourist dynamism. A thriving local market is often synonymous with long-term added value.

Buying a new, old or off-plan property?

Once the location of your main residence has been determined, it is important to choose the type of property that best suits your needs and goals. To build or to buy? Buy new or old ?

Each of the options has advantages and disadvantages:

• The advantages of new : Buying a new home allows you to take advantage of the latest construction standards, especially in terms of energy performance. This results in substantial savings on expenses and increased living comfort. In addition, notary fees for new properties are lower (2-3%).
• The interest of the old in renovating: Old properties are often well located. They stand out for their charm and a generally lower purchase price. Renovating a property gives you the freedom to optimize space as you see fit and increase its real estate value by improving its comfort and energy performance. However, it is a more complex real estate project to carry out. By using Kyka, you are supported by experienced professionals who master every aspect of this type of project.
• The appeal of the old after renovation : For buyers looking for modernity and authenticity, a well-renovated old apartment is a safe bet. However, their price is often high (including 7-8% notary fees) and as the work was carried out by the former owner, it is possible to discover some problems after the sale is finalized.‍
• Construction on plan : For those looking for a tailor-made living environment, building a new house can be an interesting option, especially because it allows you to be exempt from property tax for several years. It also offers the possibility to choose materials, layout and personalize each space. However, the cost of land can be high and construction deadlines should be anticipated. In some cases, it is more interesting to buy a property to be renovated in order to personalize it.

Do you lack time or experience in real estate? Call on Kyka to be supported at each stage of your real estate project. Our project managers are at your disposal from the search for the ideal property to its renovation, including its financing and the completion of administrative procedures. Rely on our expertise to make the purchase of your main residence with complete peace of mind.

“I have just purchased my second property and Kyka took care of everything from A to Z.
From research to work, the architect managed to transcribe my need as I imagined but better!
The team is responsive and it allowed me to free up time for myself and to leave the work part with complete peace of mind!
Thanks again, I highly recommend!”
Adrien Balikdjian