Why is investing in an SCPI a good idea?
This year 2019 was a good year in the field of SCPI investment. In 2018, they reported an average of 4.18%, which is a very good performance. Moreover, the best return SCPIs can exceed 6%. How can we explain this enthusiasm of the French for this new type of investment?
What is an SCPI?
Democratised quite recently in France, The SCPI is a company that is in charge of buying real estate with funds placed by professionals and individuals. Each investor gets shares equal to their investments. The real estate investment company is responsible for prospecting, buying and managing; it collects the income and pays it back to the shareholders in accordance with their investments.
Find your SCPI
Si you want to invest in an SCPI, you should know that there are several types. To begin with, there is the yield SCPI, which specializes in professional assets. Quarterly revenue is derived from commercial leases, which are the most profitable in the short term with fiscal REITs. They buy private homes taking advantage of a very advantageous tax exemption regime. Rental income is lower, but it is offset by tax benefits. These first two formulas are ideal for those who want to have additional income from the first year. On the Internet, you can compare those with fixed capital and variable capital. Capital gains SCPIs make it possible to release resources in the longer term while waiting for the resale of properties that will have increased in value on the real estate market. Finally, for those who don't just want to put money in stone, there are OPCIs that combine real estate and banking investments.
The advantages of SCPI
Compared to a traditional rental investment, there are two advantages to SCPIs. First, that of simplicity. Management companies take care of everything for investors. They study the real estate market, carry out purchase and resale operations, and take care of rental management and the maintenance of premises. In terms of the redistribution of income, it is also the SCPI that takes care of everything. It is therefore first and foremost the advantage of serenity that is put forward at first, because it allows people who are not familiar with the market and the formalities to make good investments. The second advantage of placing your money in an SCPI is security. Indeed, companies invest in several properties (Office real estate, warehouses, residences...), in different sectors of activity (health, administration, services, industry...), but also under different tax regimes (Pinel law, Malraux, Borloo...). Today, SCPIs are developing their investments in Europe in order to take advantage of the most advantageous fiscal and legislative arrangements. Some now take the calculated risk of investing outside the eurozone. SCPIs are also interesting, because they offer everyone the opportunity to invest what they want. Dividing investments into units means that you do not have to finance entire lots as is the case with traditional real estate investments.
