Financial goals are different from one person to another. However, in order to avoid financial servitude and to have a larger estate, the best investors advise to create income with passive flows. 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 is an acronym that is used to designate the Real Estate Investment Trust (Société Civile de Placement Immobilier). It can be seen as a real estate investment in the area of rental, but the latter is done on a long-term basis. If it is well chosen, the associates who have made the acquisition are paid a fairly constant income. The determination of the income is based on the relationship between the rent received and the number of shares acquired.
It should be noted that the SCPI has a rather specific mode of operation. Indeed, its funds come from savers and are used to build a portfolio essentially made up of real estate, such that :
- Office space
- Commercial goods
In order to guarantee transparency, the Autorité des Marchés Financier is responsible for the management of these companies.
Types of SCPI
In order to better understand how SCPI units work, it is essential to learn about how the asset works. By doing so, you'll have a better chance of determining if you can get a return on your investment. By gaining this ability to judge, you will quickly realize that the returns you receive from savings books are minimal compared to what you can get if you invest in quality SCPIs.
Faced with this, the SCI are classified into three distinct categories. It's important to understand that none is better than the other. In fact, your preference for one of them will depend on your final objective.
First of all, there are the Performance SCPI 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 can then find :
- Diversified SCPI (stores, offices, warehouses);
- Office SCPIs ;
- Commercial SCPIs;
- Regional SCPIs (depending on geographic location).
Then, we find the Capital gains SCPI which is not very common, because the annuities are not one-time. Finally, there are the SCPI fiscal which allow investors to have similar tax rates to those of direct investment. It is important to know that it operates mainly with residences and the income is only made when the SCPI is dissolved. Therefore, it is sometimes necessary to wait more than 10 years to be able to benefit from it. It is necessary to know that the tax SCPI are divided into three ranks:
- Land deficit (property renovation and rental) ;
- Pinel (Real estate rented with rental conditions) ;
- Malraux (classified properties).
Opinions on SCPIs
In order to give you an opinion on the investment in SCPI, we propose to present you the advantages and the dangers of this type of investment.
The advantages of an SCPI
The advantages of investing in SCPI are multiple and depend mainly on the type of SCPI chosen. However, an investor in SCPI is exempt from the concerns related to the management of a property put up for rent, such as :
- Finding a Tenant;
- Drafting a lease and getting it signed;
- Asking for rent;
- Manage the risk of non-payment.
The second advantage is to have a attractive yield an average of 4%. Finally, these properties are easily resold.
The dangers of an SCPI investment
Like any other investment, this one also involves risks. Especially when you know that the real estate market is often unstable. To do this, here are some tips for successful real estate investing and at the level of SCPI, the capital is not guaranteed. In the investment in SCPI, the risk is mainly in the rental income. The latter depend on several criteria and can drop for different reasons. This will have a direct influence on the level of your income. The second risk concerns the SCPI itself. The latter can go bankrupt even if the AMF has previously studied its soundness.
Finally, the last disadvantage concerns the duration. Indeed, to be able to benefit from an interesting profitability, the investor must keep his shares during a rather important number of years. Therefore, when an investor wishes to abandon the company, all his tax advantages will be withdrawn. Therefore, the investor will have to wait for the maturity date, which is at least 10 years.
SCPI and profitability
Profitability is a rather broad concept when it comes to SCPIs, as it depends mainly on type of SPI chosen. For example in the one in Pinel, it will be necessary to take into account three parameters:
- The income cap for tenants;
- Rent control is mandatory;
- The allowance cannot exceed 12, 9 or 6 years.