Investing in real estate does not necessarily imply becoming an owner. Investors can consider the implementation of alternative solutions such as the purchase of SCPI shares. Find out why this investment is the one to which you should turn preferentially.
Why should you invest in SCPI shares?
If the Société Civile de Placement Immobilier has taken over the SIIC and even life insurance in the hearts of the French, it is because it offers considerable advantages.
An affordable investment
The first advantage of this investment is that the entry ticket is generally very accessible. The acquisition being made in shares, it is very simple to adjust your investment to your possibilities and needs. The only constraint is to subscribe to a whole number of shares.
SCPIs are managed by management companies approved by the Autorité des Marchés Financiers. They are responsible for collecting funds, investing them in real estate assets with a view to renting them, managing them and valuing them. Thus, investing there is the assurance of entrusting your money to rental property professionals without worrying about any management.
Placement under supervision
The company is approved by the AMF. This third-party body monitors the proper management of SCPIs. This permanent and unique control in the field of real estate constitutes a real guarantee for the investor.
Investing in SPCI is rather safe. This is notably due to the possibility of investing in several sectors (geographical, activities, etc.) and at variable price levels. It is a real estate investment that investors deem safer for their savings than the SIIC or even life insurance.
Choosing this stone-paper investment allows you to diversify and pool your assets more than in any other investment. Indeed, the investor finds himself the owner of all the assets that make up the capital of the company and receives a fraction of all the rents in proportion to his investment.
Why adopt the SCPI rather than another real estate investment?
The non-negligible advantages of the SCPI make it a form of real estate investment which is increasingly appreciated (more details on this subject on Immoz). How is it better than other types of investments?
SCPI or traditional rental investment?
In the first case, it is the management company which supports the management of the tenant and the costs which are added to the investment of a property, which is totally different in the second case where the investor must manage everything alone. In addition, unlike traditional real estate investment, investment in SPCIs does not incur any other costs, such as insurance or co-ownership costs.
SCPIs and life insurance
Investing in a Société Civile de Placement Immobilier is much more profitable today than investing all your savings in life insurance.
Why prefer SCPIs to SIICs?
Due to their stock market listing, SIICs are subject to strong variations. Investors wishing to have a secure source of income without excessive variations will have everything to gain by choosing an investment that relies on stability and linearity. This is the case of the SCPI which ensures regular income while avoiding untimely fluctuations and unpleasant surprises.
The choice to invest in the first type of investment rather than in the second depends on the objectives of the investor, but an OPCI (Organisme de Placement Collectif Immobilier) proves to be a more uncertain investment. An investor who does not wish to be exposed to the vagaries of monetary and/or bond financial products and prefers to invest exclusively in real estate should instead turn to SCPIs.
Invest in SCPI or LMNP?
An investment in LMNP (Non-Professional Furnished Rental Company) can be a good investment, in particular because of the tax exemption possibilities attached to it. Each of the two alternatives has advantages depending on the investment strategy used. But investing in a Société Civile de Placement Immobilier is much safer for the investor.
Thus, this type of investment proves to be more interesting than other real estate investments such as life insurance or SIIC. The advantages of investing in SCPI therefore outweigh those of other options.
Read also: 5 keys to investing in your first real estate purchase, the opinion of your expert Worldcityexchange.com