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Buying a second property: a step-by-step guide in 2026
Summary
A second-time buyer refers to a person who purchases a property after having previously owned their main residence (whether purchased or inherited). To qualify as a second-time buyer, it is sufficient to have owned a property outright in the past, even if that property has since been sold.
In 2025, the French real estate market tends to favor second-time buyers, as first-time buyers are more heavily impacted by rising interest rates and strict lending conditions. In addition, sellers are often more inclined to accept offers from second-time buyers, who are generally more solvent and more experienced.
However, caution is required if you plan to sell your main residence in order to finance the purchase of another property. In some major cities such as Paris, prices declined between 2020 and 2025, forcing some homeowners to resell at a loss. This can reduce your down payment and weaken the overall financial balance of your real estate project.
To avoid unpleasant surprises, Maison Kyka can provide you with a realistic valuation of your current property and help you find a new home that matches both your needs and your budget.
“I have just acquired my second property, and Maison Kyka took care of everything from A to Z. From the property search to the renovation works, the architect managed to translate my needs exactly as I had imagined them—only better! The team was highly responsive, which allowed me to free up time for myself and leave the construction phase in complete peace of mind. Thank you again, I highly recommend them!” Adrien Balikdjian
Second time buyer: what are the differences compared to a first purchase?
Unlike a first-time buyer, a second-time buyer:
- Has easier access to bank financing
- Has more limited access to homeownership assistance schemes
- Benefits from fewer tax advantages
- Must take out a more expensive mortgage insurance policy
Easier access to credit thanks to experience and a stronger financial profile
From a bank's perspective, your status as a second-time buyer is more attractive for two main reasons:
- Thanks to your professional seniority, your income has increased and you have likely repaid a significant portion of your previous loan.
- Thanks to the resale of your current property, you can generate a larger down payment, reducing the amount that needs to be financed through borrowing.
As a result, credit negotiations are more flexible and you gain easier access to favorable terms—especially if your down payment allows you to borrow over a shorter period.
Finally, the experience gained during your first purchase makes it easier to identify and negotiate key banking clauses (payment modulation, early repayment without penalties, loan portability, etc.), enabling you to structure a financing plan that is better suited to your situation. Where first-time buyers often accept bank conditions as-is, second-time buyers are better positioned to steer their real estate project.
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Limited access to homeownership assistance
One of the main differences between a first and a second property purchase is the loss of access to public aid schemes reserved for first-time buyers. As a second-time buyer, you are generally excluded from the zero-interest loan (PTZ) and the social homeownership loan (PAS).
Your second real estate project must therefore rely on banking and wealth-based levers: your personal savings and the potential sale of your current home.
However, some situations allow you to regain first-time buyer status:
- You have not owned your main residence for more than two years: In this case, you are once again considered a first-time buyer. Subject to income conditions, you may qualify for aid such as the PTZ or PAS. This rule only applies to main residence purchases.
- You are divorced or widowed: Under certain conditions, you may qualify again for homeownership assistance schemes.
- You are buying alone for the first time after having been a co-borrower: If you previously purchased jointly (as a couple, for example) and are now buying alone for the first time, some banks may consider this as your first individual acquisition.
- You are in a situation of disability or receive disability benefits (AAH): Some schemes, including the PTZ and PAS, offer relaxed eligibility criteria in these cases.
Reduced tax advantages
As a second-time buyer, any capital gain realized from the sale of your main residence is fully exempt from income tax and social contributions, regardless of the amount. No minimum holding period is required, provided the property was indeed your effective main residence until the sale.
However, when making a second purchase, you lose certain tax advantages reserved for first-time buyers, such as:
- Reduced VAT at 5.5 % for new-build properties located in ANRU or QPV zones, unless you once again meet first-time buyer conditions (having not owned a main residence for at least two years).
- Temporary property tax exemptions offered by some municipalities to first-time buyers purchasing new properties.
NOTE
Tax incentive schemes linked to rental investment (Pinel, Denormandie, Loc’Avantages, etc.) remain available. However, they are not specific to second-time buyers and apply to all profiles, provided current eligibility conditions are met.
More expensive mortgage insurance
When taking out a new loan as a second-time buyer, the cost of borrower insurance naturally increases with age. Insurance premiums rise significantly after age 40, meaning that for the same borrowed amount, insurance may cost two to three times more than at age 30.
NOTE
If you borrow alone, or if you borrow as a couple and wish each borrower to be insured for 100% of the loan amount (meaning the full loan is repaid in case of death or disability of either borrower), insurance costs will be higher. At this stage, insurance often represents a substantial share of the total loan cost—especially if you have a medical history or a non-standard professional situation.
For a second purchase, it is usually wise to compare offers through insurance delegation. Choosing an individual policy from an external insurer can significantly reduce insurance costs (often saving several thousand euros) while maintaining strong coverage.
Finally, second-time buyers generally borrow over shorter periods, which reduces the impact of interest—but does not fully offset higher insurance premiums. This is why it is essential to analyze the overall APR (TAEG), including the true weight of insurance in your simulation.
Second real estate purchase: managing the buy–sell strategy effectively
Depending on your situation, your risk tolerance, and market conditions, you need to make a strategic decision:
- Do you want to sell before buying?
- Do you want to buy before selling?
- Do you want to buy without selling?
Selling before buying: advantages and disadvantages
Selling your current home before purchasing a new property is a strategy that is very often adopted because it provides financial reassurance.
Once the sale is finalized, you know exactly how much your down payment will be. You avoid uncertainties related to an approximate valuation or a delayed sale. This makes negotiations with the bank easier, as lenders view positively a down payment that is already available and a controlled debt ratio.
By selling first, you avoid the pressure of having to sell quickly in order to finance your new purchase. You are in a stronger position to negotiate the sale price of your current property, without rushing.
From an organizational perspective, selling first gives you time to search for the right property without haste. You are not under pressure from an imminent move. You can take the time to compare options, obtain answers to all your questions during viewings, negotiate, or even wait for the right opportunity.
However, this strategy requires managing a transition period between the two homes. You may need to temporarily rent a property or stay with relatives. This intermediate phase can generate additional costs (moving expenses, storage fees, rent).
NOTE
Market conditions can change between the sale and the purchase. If prices rise during your transition period, you may lose purchasing power.
In summary, selling before buying is an attractive option for second-time buyers who want to move forward with a clear budget and solid financing. But it requires good logistical management and a certain flexibility to live the transition period with peace of mind.
Buying before selling: pros and cons
Buying a new property before selling the previous one may seem more comfortable in practical terms, but this strategy also presents significant financial constraints.
The main advantage is continuity. You avoid a double move with a period of temporary accommodation between two homes. So you can organize your installation at your own pace.
If you buy a home to renovate, this solution allows you to carry out work in the new property while continuing to live in your current home.
NOTE
By making the purchase your priority, you can move more swiftly when a property truly captures your interest or when a highly sought-after opportunity arises, increasing your responsiveness and your chances of securing a rare find.
However, this strategy involves one condition: have the financial capacity to support two assets simultaneously. In most cases, this involves a bridge loan (see below) but this type of financing can be expensive if it drags on, especially if the sale is late or if your property sells below its estimated price.
In the worst case, financial pressure can force you to accept an offer that is lower than your expectations or to sell the property in order to avoid prolonged debt.
NOTE
With this type of arrangement, banks tend to assess your application more cautiously. They take into account the temporary financial burden of owning both properties, which may limit your borrowing capacity or require stricter guarantees.
In summary, buying before selling is an attractive option for second time buyers who have:
- a good level of savings,
- sufficient debt capacity,
- a good knowledge of the real value of their current property.
Buying without selling: when is it possible?
Buying a new property without selling the previous one is a possible strategy for first-time buyers who want to transform their old home into a rental property or keep it as a second home.
This strategy has several advantages:
- You are completely free to decide on the time frame of your purchase,
- You can't bear any pressure to sell,
- Your purchase is independent of the success of the sale,
- You avoid the transition phase between two homes,
- You develop your real estate assets.
NOTE
If the loan on the first property has been almost or fully repaid, you can rent out the property and use the rental income to offset part of the monthly payments on the new loan.
However, this scenario is possible provided that your overall debt ratio allows it. Even if you receive rental income, 100 % of this is not taken into account (around 70 %). You must therefore prove a solid financial situation, with stable incomes, a sufficient disposable income and often a substantial contribution.
In addition, you must be able to assume the expenses of two properties (property taxes, maintenance, work, insurance, etc.), which is rarely accessible to young households. Finally, this strategy requires a detailed analysis of the local rental market because it can become problematic if the preserved property becomes difficult to rent.
In summary, buying without selling is a strategy reserved for second time buyers who want to build or diversify their real estate assets. This solution should only be considered if:
- your income allows you to finance both properties,
- your first home can generate reliable and sustainable rental income
- you are ready to manage two properties at the same time for the long term.
At Maison Kyka, we can support you at each stage of your project: feasibility study, purchase-sale strategy, connection with financing experts, projection of possible work. Our team is at your disposal to help you make informed decisions, based on your wealth situation, your life goals and market opportunities.
“I 100 % recommend the Maison Kyka experience! There’s absolutely no mental load, as they handle everything, and the team is highly responsive to needs and requests, making the entire process very smooth. A huge thank you to Maison Kyka!” Perrine Jouve
How to finance a second real estate purchase?
The classic real estate loan: advantages and disadvantages
When you buy a new property, you can take out a new traditional mortgage, but this solution is for second buyers whose financial situation is solid enough to support two loans simultaneously.
This financing solution has the advantage of being the easiest to implement: you can define the amount, duration and monthly repayment payments in advance, without having to go through a temporary financial mechanism.
This option can be interesting if you already own a property that is being resold but you want to avoid the specific constraints of a bridge loan (in particular short repayment periods or the risks in the event of a late sale).
NOTE
If your current loan is close to maturity or carries a low outstanding balance, the impact of dual financing may be deemed acceptable by the bank.
However, this strategy has drawbacks that should be anticipated:
- You must pay two monthly payments in parallel, at least until the actual resale of your first property.
- Two loans greatly increase your debt ratio on paper, but it should not exceed 35 % including insurance (with exceptions).
- In the absence of a contribution from the sale, you will have to finance the notary fees and any work alone.
In summary, taking out a second traditional real estate loan is a possible solution to finance a second purchase, but it involves a significant financial effort, a good ability to anticipate and the agreement of a banking institution that agrees to assist you.
The bridge loan and the buy-back bridge loan: advantages and disadvantages
When you want to buy a new property before selling the current one, taking out a bridge loan allows you to: obtain an advance of the required contribution to the new acquisition, pending the resale of the owned property.
That said, there are two types of bridge loans:
- the simple bridge loan,
- the bridge loan with repurchase (also called integrated bridge loan).
The simple bridge loan
The simple bridging loan is the most classic form. It consists of asking the bank for an advance, generally equivalent to 50 to 70 % of the value of your property for sale (minus outstanding capital).
NOTE
If you purchase a primary residence valued at €600,000 and still have €200,000 outstanding on your current loan, your available equity amounts to €400,000. The bank may then grant you a bridge loan equal to 60 % of this €400,000, i.e. €240,000.
This amount is used as an immediate contribution to buy a new property, without waiting for the final sale of the previous one. During the term of the bridge loan (generally 12 to 24 months), you only repay the intercalary interests, which reduces your monthly payments. Once the sale is completed, you repay the capital of the bridge loan in one fell swoop.
Advantages:
- Immediate contribution without having sold,
- Light monthly payment during the transition phase (interest only),
- Flexibility to organize the sale.
Disadvantages:
- Double financial burden (old credit + relay interest),
- Pressure if the sale is delayed or at a price lower than the estimate,
- Obligation to take a second classic mortgage to complete the financing of the new property.
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The bridge loan with repurchase (or integrated bridge loan)
A bridging loan with repurchase is a more comprehensive formula. It consists of have the bank buy back your old mortgage, at the same time that it grants you the new loan (relay + main loan). So you keep your loan after the first home is sold.
Concretely, the financial institution combines in a single offer:
- The repayment of your old credit,
- The amount of the bridge loan based on the estimated value of the property for sale,
- The new credit for the purchase of the coveted property.
Result: you only have one monthly payment to repay, as soon as the financing is in place. Once your old home is sold, the proceeds of the sale reimburse the bridge portion of the credit. Your monthly payments are then recalculated downwards.
Advantages:
- Single monthly payment from the start, more readable,
- Simplified financial management,
- Elimination of double credit (the old loan is settled).
Disadvantages:
- Higher amount borrowed at the beginning, therefore heavier monthly payment,
- Less flexibility (you pay back immediately),
- The total amount of interest may be higher if the sale is delayed.
In summary, the simple bridge loan is suitable for second buyers wishing to minimize their short-term expenses, provided they have good visibility on the sale. The bridge loan with repurchase, on the other hand, offers a unified solution that is more secure in the long term, but requires better immediate debt capacity.
Mortgage lending: pros and cons
A mortgage loan is an often overlooked solution that consists in putting your current real estate as collateral to finance the purchase of a new home. Concretely, the bank registers a mortgage on this property and grants you credit based on its value, without requiring you to sell it immediately.
The main advantage of a mortgage loan is its wealth flexibility: you remain the owner of your property, which you can continue to occupy or rent out, while using its value to create real estate leverage.
However, mortgage lending has a few drawbacks that need to be considered:
- It involves high fees since mortgage registration must go through a notary and be registered with land advertising services.
- In the event of non-payment, the bank may initiate a procedure to seize the collateral.
- The conditions for granting are often more stringent: you must prove a stable income, a comfortable rest to live in and the mortgaged property must be in good condition and located in a sought-after area.
