Neither of us grew up with any real inheritance or family fortune to fall back on. Our first real estate move was renting out our own small studio, almost as an experiment more than a strategy, and fifteen years later it’s still the decision that changed how we think about money the most. We’re not financial advisers and we won’t pretend to be, but readers keep asking us why we still believe property is worth considering if you have some capital to put to work, so here’s our honest answer.
For us, real estate has held up as one of the more tangible ways to protect savings over the long run, mainly because it produces something you can actually see and, if rented out, an income that can complement an uncertain pension down the line. That doesn’t make it risk-free, and it isn’t the right move for everyone.
In short, here’s what shapes our own thinking:
- Property tends to hold its value better than cash sitting in an account losing ground to inflation.
- A well-chosen rental can cover part or all of a mortgage payment while you still own the asset.
- Borrowing costs move in cycles, current French rates sit far from the record lows of a few years ago but remain within a historically reasonable range.
- Renovation aid schemes like MaPrimeRénov’ can improve returns on older properties, under real conditions worth checking case by case.
Why we see property as a way to secure the future
Whatever form a real estate investment takes, buying to live in, buying to rent out, or a smaller stake through a property fund, the underlying logic hasn’t changed much for us over the years: it’s one of the few investments you can walk into and actually touch. Unlike a stock portfolio, a flat doesn’t disappear overnight because of a bad quarter somewhere else in the world. That doesn’t mean prices never fall, they can and do, but the asset itself keeps existing and keeps being useful, either to live in or to rent to someone else.
Retirement is the other reason this stays on our minds. Pension systems across Europe face real long-term funding questions, and nobody our age can say with total confidence what their pension will actually look like in twenty years. A rental property that’s paid off by the time you stop working can genuinely change that equation, turning a monthly income question into something already answered.
Borrowing costs today, compared with a few years ago
It’s worth being honest about where credit stands right now rather than repeating what was true when rates were at historic lows. As of mid-2026, the average French mortgage rate over 20 years sits around 3.3%, with the Banque de France’s own figure for May 2026 at 3.11%. That’s a long way from the sub-1.5% rates some buyers locked in back in 2021, and current forecasts point to rates staying in a 3.3% to 3.5% range through the rest of the year rather than falling sharply.
None of that makes borrowing a bad idea by default, a rate that feels high compared to 2021 can still make sense if the property genuinely covers its costs through rent, or if buying stops you paying someone else’s mortgage through rent for the next twenty years instead of your own. What it does mean is that the maths needs checking properly with your bank rather than assumed from old headlines.
Renovation aid can shift the numbers on older properties
Older properties, the ones that scare off buyers because of an outdated boiler or poor insulation, sometimes hide the best margins once renovation aid is factored in. MaPrimeRénov’, managed by the Anah, can cover up to 80% of costs for a full-scale renovation that improves a property’s energy rating by at least two classes, and separate support exists for co-ownerships. The scheme was suspended briefly earlier in 2026 before reopening in February following a finance law update, a reminder that these programmes shift from year to year and always deserve a fresh check before you commit to a purchase based on assumed aid.
| Factor | Where things stand in 2026 |
|---|---|
| Average mortgage rate (20 years) | ≈ 3.3%, vs sub-1.5% in 2021 |
| Renovation aid (MaPrimeRénov’) | Up to 80% of costs for full renovations, conditions apply |
| Rate trend forecast for 2026 | Broadly stable, 3.3% to 3.5% expected |
Frequently asked questions
Is now a good time to invest in real estate?
There’s no single honest answer, it depends on your own finances, the local market and your reason for buying; what worked for us at low rates a decade ago isn’t automatically the same calculation today.
Does a higher mortgage rate make renting out a property unprofitable?
Not necessarily, but it does shrink the margin, which makes it more important than ever to check real rental demand and realistic rent levels before buying.
Can renovation aid really make an old property worth buying?
It can shift the numbers meaningfully on paper, but eligibility conditions are specific and worth confirming with a France Rénov’ adviser before you factor the aid into your budget.
We’ve weighed up the arguments for and against this kind of investment plenty of times over the years, and we’ve put more of that thinking together separately if you want to dig into the pros and cons of investing in real estate and a broader look at different real estate investment strategies. None of this replaces a conversation with your bank or a financial adviser who actually knows your full situation, we’re simply two private buyers sharing what convinced us to keep going.
Published in 2020, updated 29 July 2026.
Sources: Banque de France (average mortgage rates, May 2026), CAFPI baromètre des taux (July 2026), Anah / service-public.fr (MaPrimeRénov’, 2026).