The Lyon market and its financing
West Lyon or Lyon 5th and 9th Arrondissements: The Trade-off at Equal Monthly Instalments
West Lyon or Lyon 5th-9th? Compare at equal instalments: the four-step method, the costs listings omit, and the cases where the west loses.
Between West Lyon and the fifth and ninth arrondissements of Lyon, the trade-off is made at equal monthly instalments, not at the price per square metre: the monthly instalment is the only figure that the lender compares to your income. Leaving Lyon does not always result in gaining floor space, and the cost of ownership, a second vehicle, or a longer resale period can reverse the comparison.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- The trade-off is reasoned in terms of monthly instalments, not price per square metre: it is the only figure that the lender compares to your income.
- Cost of ownership, cost of mobility, and resale potential do not appear in any property listing and can reverse a price comparison.
- The difference in floor space is not uniform: some municipalities in the west cost more than certain arrondissements of Lyon.
- A travel time is measured door to door, at the actual time of travel and in the direction of the peak.
- A necessary second vehicle, a short holding period, or a rapid resale often make West Lyon less suitable.
Tassin or the fifth arrondissement? At an equal monthly instalment, ask yourself what you obtain for the same monthly effort, including hidden costs. Price benchmarks: the Lyon market and its figures.
Reason in terms of monthly instalment, not price per square metre
The monthly instalment is the only figure the lender compares against your income. At an equal price, fees, guarantee, insurance and term cause it to vary.
35,00 % ()- Set the monthly instalment you wish to bear.
- Deduce the amount you can finance (the formula for the monthly instalment).
- Subtract acquisition costs and guarantee.
- Divide the remainder by the sector median.
Where to read the medians on both sides of the comparison?
In the property value requests from the DGFiP, by commune and by arrondissement. Note the sample size before the price.
An arrondissement covers significant variations from one street to another. The benchmarks: the western Lyon area commune by commune, Lyon arrondissement by arrondissement.
Which hidden costs can reverse the comparison?
Ownership, mobility and resale value. None appears in a property listing, yet all are paid for.
- Ownership: council tax (impots.gouv.fr), service charges, maintenance.
- Mobility: a second vehicle weighs as heavily as a large price difference.
- Resale value: the selling time of the sector.
| Item | Where to read it | What you will be told instead |
|---|---|---|
| Council tax | Tax notice of a comparable property, published tax data | « It is reasonable » |
| Service charges | Last three calls for funds, last minutes of the general meeting | An announced monthly average |
| Voted works not yet invoiced | Minutes of the last three general meetings | Nothing |
| Mobility cost | Your own budget, real journey simulated at peak hours | « It is fifteen minutes away » |
| Sector selling time | Local professionals, historical transaction data | « It sells very quickly » |
Do you really gain square metres by moving west of Lyon?
Often, but not always: some western communes are more expensive than certain districts. Compare two named sectors, for a property of equal type.
The proportion of houses by commune: what the bank reads from a house. On the edge of Lyon: Sainte-Foy-lès-Lyon. On the city side: the mortgage in the fifth arrondissement. These costs enter into your disposable income: what the bank looks at.
How to measure your true travel time?
Door to door, at the time and in the direction in which you will travel. “Fifteen minutes from Lyon”, that is by car, on a Sunday.
Add parking, and multiply by the number of working adults in the household.
When the western Lyon area is the wrong choice
If the household cannot support a second vehicle, if you plan to resell quickly, or if a resale must finance the next step.
Sale before purchase? The bridge loan in the western Lyon area. The west wins when you need space, already work outside Lyon and stay for more than ten years.
The income the bank takes into account: the budget for a first purchase. Another trade-off: Villeurbanne or the sixth arrondissement.
Two sectors in the lead? Create your file or compare them by telephone.
Sources
Read next
- Mortgage in Lyon: one file, several banks
- Buying in the West of Lyon: what your budget buys, commune by commune Écully, Francheville, Craponne, Dardilly, Limonest and more: how to read completed-sale prices, and how to move from monthly instalment to floor area.
- Price per square metre by district in Lyon: where to read the medians, and what your budget buys Price per square metre in Lyon: where to read the median of actual sales in each district, the caveats involved, and the floor area your budget can purchase.
- Buying in Villeurbanne or the West of Lyon: how to structure your financing? A flat in Villeurbanne, a house in west Lyon: what the lender examines on the property, the costs to anticipate and the order of procedures.
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