Successfully buying your primary residence

Why buy your primary residence?

Buying your primary residence has 4 main advantages, as it allows you to:

1. enjoy a space tailored to your needs,
2. build your wealth,
3. take advantage of certain tax benefits,
4. capitalize on real estate leverage,

To enjoy a space you can customize

Living in a home that belongs to you is a source of well-being, comfort, and freedom. While tenants must obtain a landlord's approval to carry out certain renovations or layout changes, buying your primary residence offers the freedom to modify your home to suit your needs.

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

To build your wealth

Becoming the owner of your primary residenceis the cornerstone of building your wealth (as any financial advisor would say). Unlike rent, which is a sunk cost, every mortgage payment is a form of savings that increases your net worth.

In fact, loan repayments are often equivalent to the cost of monthly rent. The major difference is that once the loan is paid off, you own a piece of real estate. Becoming a homeownermeans combining business with pleasure: you have a place to live while building your wealth.

Of course, being a homeowner comes with obligations. For years, you will need to cover additional costs such as property taxes, condo fees (if you live in an apartment building), and any necessary repairs or maintenance. These expenses must be balanced against the benefits of real estate assets, which can open doors for you. For instance, a property you own can serve as collateral for a new loan, whether for a rental investment or a business venture.

When done right, buying your primary residence is a true springboard for building wealth. With Maison Kyka by your side, every detail of your project is under control. After signing a search mandate, one of our real estate project managers will assist you in finding the ideal property to renovate, ensuring you can move into a home that reflects your style and build your wealth on solid foundations.

“Maison Kyka is an incredible team and experience! I am the happy new owner of a property that was entirely sourced and renovated thanks to Maison Kyka! A first-time purchase is complicated and intimidating, so having this kind of support is simply the best experience possible!”
Jordan Lorho

To take advantage of tax benefits

As a significant source of wealth creation, the government has implemented several tax incentives to encourage people to invest in real estate.

The main advantage of a primary residence is the capital gains tax exemption upon resale. Unlike secondary residences, where the sale is subject to tax, you keep the entire profit if you sell your primary home for more than you paid. Thanks to this exemption, it is much easier to sell your primary residence and buy another one that is larger.

Other measures also reduce the tax burden for owners of a primary residence. For example, when a property is passed on, heirs of a primary residence benefit from a 20% deduction on the market value of the property when calculating inheritance tax.

Capitalizing on real estate leverage

Real estate leverage is a powerful tool for maximizing your investment returns. By taking out a loan to purchase your primary residence, you use the bank's funds to build wealth far greater than your initial down payment.

Buying an apartment or house that needs renovations is an excellent strategy because renovation allows you to significantly (and quickly) increase a property's value. In the era of energy transition, improving a home's energy performance rating (DPE) by one or two levels significantly influences its market value.

Let's look at a concrete example: imagine you buy a property for 250,000 euros and add 50,000 euros in renovation work. With a down payment of 30,000 euros, you borrow 270,000 euros over 25 years (at a 3.5% interest rate), resulting in a monthly payment of approximately 1,400 euros. After six years, you sell the property for 350,000 euros, realizing a 40% capital gain compared to the initial purchase price (or 16.6% when including the renovation costs).

Thanks to this successful resale, you have generated 50,000 euros in net profit while only investing 30,000 euros of your own money. In terms of gross return, this is equivalent to 170%, or 28% per year. A rate of return that is hard to match with stock market investments!

Furthermore, during those six years, you have paid down a portion of your loan. You owe the bank only 170,000 euros at the time of the sale. After paying off the loan and accounting for ancillary costs (notary fees, property taxes, etc.), you are left with net capital of approximately 160,000 euros. And the icing on the cake: you can reinvest everything into another real estate project since the capital gain made on the sale of your primary residence is tax-exempt.

By working with Maison Kyka, you are supported at every step of your journey, from finding the ideal property to completing the renovations that increase both your property's value and your comfort.

“I recommend the Maison Kyka experience 100%! Zero mental load because they handle absolutely everything, and the team is responsive to needs and requests, which makes the whole process very smooth. A big thank you to Maison Kyka!”
Perrine Jouve

When is the right time to invest in real estate?

We often hear that "the earlier you buy, the better." This reasoning holds up in that the younger you start paying off a loan, the sooner you are free from financial commitments and can engage in other rewarding long-term projects. 

That said, the decision to buy or rent your primary residence depends primarily on your financing capacity—that is, your savings, the stability of your income, and your debt-to-income ratio.

However, it is important to keep in mind that not all real estate investments necessarily result in financial success. Several factors can compromise the profitability of your project:

• Property depreciation : The value of your primary residence may decrease over time due to natural wear and tear, a declining real estate market, or damage caused by natural elements (e.g., sand, water, etc.).
• Additional costs : Notary fees and taxes associated with a purchase often account for 7% to 8% of the sale price, which increases the total cost of the investment.‍
• Long-term return : To make a profit upon resale, the property generally needs to have increased by at least 10% of its initial value. In a context of falling prices, one might wonder whether to buy in 2026 or if it is better to wait, especially if you are looking to buy a new property.

Are you wondering how to become a homeowner but aren't sure where you'll be living in 2 or 3 years? In that case, a good strategy is to buy an older property and hire a renovation company to restore the home. This allows you to quickly increase its real estate value, amortizing acquisition costs faster and enabling you to make a profit upon resale if you decide to move a few years later.

However, without experience, it is difficult to find a property to renovate and competent contractors to design and carry out the work according to your tastes and preferences. This type of real estate project requires extensive research, knowing how to ask the right questions during a property viewing, negotiating an attractive sale price, securing a mortgage with favorable terms, handling various administrative procedures, and managing the necessary renovation and interior design work…

At Maison Kyka, we offer our clients our expertise at every stage of purchasing and renovating their primary residence:

• Tailored property hunting : we select properties for you that match your criteria exactly. We help you negotiate the sale price to secure the best purchase terms.

• Architectural design : we design every room according to your preferences, with a constant attention to detail. Your future property will be designed to offer you the greatest possible comfort.
• Project management and oversight : one of our project managers takes charge of orchestrating the work, supervising the various trades and ensuring that deadlines and budgets are met.
• Furnishing and layout : our team assists you in selecting, assembling, or creating custom-made furniture.
• Optimized sales and resale If you decide to resell, we are also here to help you sell your property under the best possible conditions. We know how to showcase the homes we have renovated to their full potential.

With Maison Kyka, you are never alone on your real estate journey. We guide you through every step with personalized attention, ensuring that the purchase of your primary residence is an undeniable success and completely stress-free.

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

What questions should you ask before buying your primary residence?

To ensure your investment is a success and to avoid the pitfalls that can lead to buyer's remorse, it is essential to properly prepare for theacquisition of your primary residence. This involves:

1. a rigorous assessment of your financing capacity, 
2. choosing the location and type of property you wish to buy, 
3. deciding between a new build, an existing property, or an off-plan purchase. 

Assessing your financing capacity

Before you get started, it is essential to establish a realistic financing plan. This process takes into account your income, your current expenses, and any existing loans you may have.

In this period of high interest rates, banks are becoming more demanding. Having a stable professional situation and a personal down payment of at least 10% of the total purchase price is almost essential to secure an attractive loan offer.

Once you become a homeowner, don't forget to include additional costs in your budget, such as property taxes, condominium fees (if applicable), and any potential renovation or maintenance expenses. These extra costs can quickly become a burden if they haven't been anticipated.

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

• PTZ (Zero-Interest Loan) : reserved for first-time buyers purchasing a new property, it can finance up to 40% of the borrowed amount, interest-free.
• Conventional loan : granted by most banks, it finances the purchase or renovation of a primary residence, with no income requirements.
• PAS (Social Home Ownership Loan) : it offers lower interest rates for households that meet certain income ceilings.
• Action Logement loan (employer-sponsored) : available to employees of companies that contribute to the scheme, it makes home ownership more accessible.

Define the location and type of property you want

The location of your future primary residence is a decisive factor, not only for your quality of life but also for the property's value in the real estate market. To get started, make a list of the elements that matter most to you: square footage, number of rooms, outdoor space, orientation, condition of the property, etc. These criteria will help you target properties that match your expectations and constraints.

It is therefore recommended to choose a neighborhood well-served by public transport, close to amenities (shops, schools, healthcare services) and employment hubs. A good location will increase the appeal of your property, making it easier to resell at an advantageous price.

To make a sound real estate investment, target cities that benefit from economic, cultural, or tourist vitality. A thriving local market is often synonymous with long-term capital gains.

Buying a new, existing, or off-plan property?

Once the location of your primary residence is determined, you need to choose the type of property best suited to your needs and goals. Build or buy? Buy new or existing ? 

Each option has its pros and cons:

• The advantages of new builds : Buying a new home allows you to benefit from the latest construction standards, particularly in terms of energy efficiency. This translates into substantial savings on utility bills and increased living comfort. Furthermore, notary fees for new properties are lower (2-3%).
• The benefits of an existing property to renovate: Older properties are often well-located. They stand out for their charm and generally lower purchase price. Renovating a property gives you the freedom to optimize the space as you see fit and increase its real estate value by improving its comfort and energy efficiency. However, it is a more complex real estate project to carry out. By choosing Maison Kyka, you are supported by experienced professionals who master every aspect of this type of project.
• The appeal of renovated older properties : For buyers looking for both modernity and authenticity, a well-renovated older apartment is a safe bet. However, their price is often high (including notary fees of 7-8%), and since the work was carried out by the previous owner, it is possible to discover certain issues after the sale is finalized.‍
• Building from plans : For those seeking a custom living environment, building a new home can be an attractive option, especially since it allows for property tax exemptions for several years. It also offers the possibility to choose materials, the layout, and to personalize every space. However, the cost of the land can be high, and construction timelines must be anticipated. In some cases, it is more advantageous to buy a property to renovate in order to personalize it.

Short on time or real estate experience? Call on Maison Kyka to be guided through every step of your real estate project. Our project managers are at your disposal from finding the ideal property to its renovation, including financing and handling administrative procedures. Rely on our expertise to make the purchase of your primary residence with complete peace of mind.

"I just purchased my second property and Maison Kyka took care of everything from A to Z.
From the search to the renovation work, the architect managed to translate my needs exactly as I had imagined, but even better!
The team is responsive, which allowed me to free up time for myself and hand over the renovation work with complete peace of mind!
Thanks again, I highly recommend them!"
Adrien Balikdjian