Financial goals are different from one person to another. However, to be able to avoid financial servitude and have greater assets, the best investors advise creating income whose flows are passive. To do this, the acquisition of SCPI shares is a solution to consider. Moreover, it is very popular in recent years. Find out in this article what an SCPI represents and our opinion on this type of investment.
A SCPI
An SCPI is an acronym that is used to designate the Civil Real Estate Investment Company. It can be seen as a real estate investment in the rental sector, but the latter is done over a long period. If it is well chosen, the partners who made the acquisition are paid fairly constant income. The determination of income has an analogous relationship between the rents collected and the number of shares acquired.
You should know that the SCPI has a fairly specific mode of operation. In fact, its funds come from savers and they are used to build a portfolio essentially made up of real estate, such as :
- Desks
- Apartments
- Commercial goods
In order to guarantee transparency, the Financial Markets Authority is responsible for the management of these companies.
Types of SCPI
In order to better understand how SCPI shares work, it is essential to find out how the asset works. This will give you a better chance of determining whether you can get a return on your investment. By acquiring this capacity for judgment, you will quickly realize that the returns received from savings accounts are minimal compared to what you will be able to have if you invest in quality SCPIs.
Faced with this, SCIs are classified into three distinct categories. You have to understand that none of them is better than the other. Indeed, your preference towards one of them will have to be based on your final objective.
First of all, there are the SCPI yield whose income is allocated on a fairly regular basis (approximately every quarter). It is this type of SCPI which is the most widespread on the market. You will then be able to find:
- Diversified SCPI (stores, offices, warehouses);
- Office SCPIs;
- Commercial SCPIs;
- Regional SCPIs (depending on geographic location).
Then, we find the SCPI of added value which is not very widespread, because the annuities are not punctual. Finally, there are the Tax SCPI which allow investors to have taxes similar to those of direct investment. You should know that it mainly operates with residences and the annuity is only paid when the SCPI is dissolved. As a result, you will sometimes have to wait more than 10 years to be able to benefit from it. You should know that tax SCPIs are divided into three ranks:
- Land deficit (property renovation and rental);
- Pinel (Buildings rented with rental conditions);
- Malraux (listed properties).
Opinions on SCPIs
In order to be able to form an opinion on investing in SCPI, we suggest that you present the advantages and dangers of this type of investment.
The advantages of an SCPI
The advantages that result from an investment in SCPI are multiple and mainly depend on the type of SCPI chosen. However, an investor in SCPI is exempt from concerns related to management of real estate rented, such as:
- Find a tenant;
- Write a lease and have it signed;
- Ask for the rent;
- Manage the risks of non-payment.
The second advantage is to have a attractive yield by an average of 4%. Finally, these real estate properties are easily resold.
The dangers of an SCPI investment
Like any other investment, this one also carries risks. Especially when we know that the real estate market is often unstable. To do this, here are tips for success in real estate investing and at the SCPI level, the capital is not guaranteed. In investing in SCPI, the risk is mainly in the rental income. These depend on several criteria and can drop for different causes. This will therefore have a direct influence on the level of your pension. The second risk concerns the SCPI itself. The latter can go bankrupt even if the AMF has previously studied its solidity.
Finally, the last disadvantage concerns the duration. Indeed, to be able to benefit from attractive profitability, the investor must keep his shares for a fairly significant number of years. Therefore, when an investor wishes to abandon the company, all of its tax advantages will be withdrawn. As a result, the latter will be forced to wait for the maturity date, which is at least 10 years.
The SCPI and profitability
Profitability is a fairly broad concept when talking about SCPI, because it mainly depends on the type of SPI chosen. For example in Pinel, three parameters will have to be taken into account:
- The income cap for tenants;
- Rent control is mandatory;
- The allowance cannot exceed 12, 9 or 6 years.