Remunerative, an investment in SCPI is not without risk. This investment is even exposed to a certain number of risks that every saver must be aware of. Here are some pitfalls to watch out for if you plan to invest your money in a Société Civile de Placement Immobilière.
Operators and markets as a whole often praise the 5% annual return of SCPIs. Only, with the fees and the various charges, the real profitability of the investment can be relatively low. In a market where inflation sometimes reaches high levels, the real return on SCPI shares is sometimes equal to, or even lower than, inflation. In this case, the investment itself loses all its interest.
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The risk of capital loss
Except that reality sometimes contradicts expectations, according to which real estate is always a safe haven. The real estate market is never safe from a sudden drop, caused by poor economic conditions, changing legislation or a financial crisis, among others. These fluctuations naturally affect SCPIs, which are forced to depreciate their shares in order to adapt to the market. The risk of capital loss and capital loss in SCPIs is therefore real, even if it remains low beyond an investment horizon of 10 years or more.
An investment in SCPI is intended to be flexible, in theory. You are free to sell your shares at any time. In fact, selling shares invested in real estate is not so simple. Even in a very favorable context, with high market demand, such an operation can take several weeks or even months. If you have an urgent need for cash during this period, your funds will remain blocked until your units find takers. And the belief that the manager of the SCPI is always ready to buy out the shares of the partners is not true.
The tax trap
Since January 1, 2019, your SCPI shares are included in the calculation of your tax base, in the same way as the real estate that you own directly. Your marginal tax rate applies to investment income, as well as social security contributions. So, before committing, take the time to calculate the taxes and duties you must pay on your SCPI shares. However, be aware that you can exempt your SCPI from tax, either by subscribing to shares on credit, or by acquiring shares with a life insurance contract, or by buying them in dismemberment.
The managers charge an average of 10% entry fees, to which must be added the annual fees which represent between 8 and 14% of the rents collected. Keep a close eye on these costs – although they seem insignificant – when choosing your SCPI. An investment dependent on excessively high or unjustified fees will logically be less profitable in the medium and long term.
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