SCPIs are increasingly sought after by small and large savers. Who are they ? What are their returns? Here are some clarifications. The SCPI in detail on scpi-8.com
What is behind the acronym SCPI?
SCPIs are Civil Real Estate Placement Companies. Real estate investing has become and will be for many years to come, one of the best investments in the short or long term. But make no mistake, if we are not in the game, we risk breaking our noses very quickly. Not all so-called good deals are necessarily good deals, and it is better to trust the people whose job it is.
The SCPI take care of everything. We entrust them with our money for a given time, and they return it to us with higher interest than the savings accounts. Several possibilities are available to you, find the SCPI in detail on scpi-8.com, a site rich in information which will provide you with all the answers to your questions.
When to make a SCPI investment?
A sum of 5000 € is sufficient to start investing in real estate via a SCPI, in paper stone. The sine qua non condition is to waive this sum for the number of years stipulated at the signing of the contract. You can invest up to € 300,000.
The advantages vary depending on whether you choose an investment in performance SCPI, SCPI capital gain, SCPI Malraux / land deficit or SCPI Pinel.
The performance SCPI
It pays off quickly for the company and the investor can expect to get around 4.50% interest after just 3 months. The real estate concerned is that of the rental of offices, commercial leases, business premises of all kinds as well as warehouses.
The SCPI Plus-Value
It mainly concerns the rental of residential real estate, around 98% against only 2% of professional rental real estate. Housing rentals are generally geared towards moderate rents in old housing in the Paris region, the returns are quite low, but still more advantageous than a savings book. The return will be made on the capital gain made on the resale of the building once it has been renovated, for example, or on a significant discount on the forward purchase price.
SCPI Malraux / Land deficit
It saves money by reducing taxes. By investing in protected buildings in France to renovate, we are participating in the repair of French heritage while considerably reducing our IR, up to 30% of the investment made (100,000 € maximum investment, therefore 3,000 € reduction taxes). The investment blocking period is a minimum of 9 years, but 15 years are rather recommended to obtain a maximum capital gain.
The SCPI Pinel is a so-called fiscal SCPI. It allows you to invest more money than SCPI Malraux, up to € 300,000 over 12 years maximum. The tax advantages vary according to the duration of the engagement. And there, it is necessary to read well and to count if it is really advantageous to wait for the 12 years.
Unlike the SCPI Malraux, it is better, to earn more, to invest only for a short time and repeat the operation. Indeed, if over 6 years, the tax reduction is 12% of the amount invested, we obtain 2% per year on average, as for 9 years (18%), while for 12 years (21%), the reduction amounts to 1.75% per year. It is always and again superior to the savings book but in this case, you might as well opt for the shorter duration. The sum in the end will be higher, but by repeating the operation several times the liquidity will again be accessible and we can reinject them if we do not need it immediately.
Read also: Can SCPI dividends fall?
Record returns for SCPI investments
While there are several areas of investment in SCPI, there are also several possible forms of investment.
SCPI in cash
The saver owns shares in the SCPI and therefore rents from the real estate stock (housing and offices) which earns him quarterly. Since the saver pays his shares in cash, the return is not truncated by debit interest. He can expect to earn up to 5.38% net rental yield. To better understand how it works, we invite you to read another article on the subject.
SCPI on credit
It is fairly similar to the banks’ home savings plan in principle, but not in substance. A little more complex than the SCPI in cash, it allows us to earn up to 8.45% annualized return.
SCPI in dismemberment
Temporary or life annuity, this formula allows you to benefit from a discount on the price of the share of up to –35% in bare ownership or in usufructuary with a rate of return of up to 2.98% under certain conditions.
SCPI in life insurance
The saver combines the return on profits from real estate with the advantages of the tax envelope offered by life insurance. The yield is approximately 5% gross per year.
SCPI in Madelin or PERP (Popular Retirement Savings Plan)
It is a kind of retirement savings, the first, Madelin, concerns independent professions and the PERP, employees. Possibility of tax reduction up to 45%.
Read also: What are the risks in SCPI?