SCPI at the peak of real estate investment in 2024
SCPI is emerging as the preferred choice for real estate investment. In the face of shrinking investment bank returns and growing uncertainty around pensions, rental property is positioning itself as the safe haven par excellence. But how to choose the best real estate investment? Here are some key points highlighting SCPI’s growing popularity among French investors in recent years:
Outsourcing management to professionals
Entrusting the management of your property portfolio to a management company allows SCPI investors to earn rent without management fees. A boon for savers freed from the constraints of property ownership (condominium fees, property taxes, labor, tenant management) to invest in real estate with total peace of mind. The management company draws on its experience and skills in creating a strategy aimed at achieving pre-defined goals.
SCPI offers an attractive return on real estate
The growing appeal for SCPI is explained by the prospect of returns of up to 7% without management fees. Grégoire Moulinier, founding partner of La Centrale des SCPI, the leading distributor of SCPI shares in France, points out that in the face of the poor performance of life insurance in euro funds and bank savings products, the French are strategically redirecting their liquidity towards income SCPIs. This allows them to receive attractive rents on a regular basis while increasing their property.
Control the rental risk
In SCPI, rental risk is greatly reduced due to the large number of assets that make up the portfolio. We are far from the risk associated with an apartment rented to a single tenant. SCPIs have the flexibility to invest in different types of assets and diversify geographically, thereby reducing rent risk for investors.
Customize the SCPI acquisition method of his profile
The first question that arises for any investor concerns the creation of additional income, either immediately or in anticipation of retirement.
Create an immediate annuity with a cash purchase
For savers with idle cash in low-yielding bank accounts or involved in risky investments such as the stock market, investing in income assets, particularly through SCPI shares, is a smart alternative. With affordable tickets, this approach offers the possibility of creating a real profitable property.
Faced with ever-changing life expectancies and significant reductions in retirement income, building diversified assets in SCPI is proving to be strategic. It allows you to generate regular and unlimited income while preparing for the transfer.
Optimize leverage with an SCPI loan
Leveraging through an SCPI loan can be relevant in many situations. The quality of the credit offer is of paramount importance, which requires prudent financing management to ensure convenient repayment adapted to the saver’s situation. Lionel Benhamou, founding partner of La Centrale des SCPI, emphasizes the importance of taxation in this approach.
Neutralize taxation through fragmentation
For highly taxed investors or those approaching retirement, temporary asset fragmentation appears to be a sensible solution. This approach allows you to acquire only bare ownership of SCPI shares for a period, offering a discount on the share price and thus eliminating taxation. Matching the length of chunking to the pension allows rent to be collected when the saver’s income inevitably declines.
Invest in the best SCPIs of 2024
It is not enough to acquire an SCPI portfolio to invest wisely in SCPI; it is essential to choose them according to your specific goals. Inviting an investment professional is critical to identifying the best opportunities that fit your financial profile.
With this in mind, the experts at La Centrale des SCPI recommend opting to diversify investments across several SCPIs, thereby enhancing their impact and complementarity. The wide selection in the SCPI market offers savers a wide range of strategies.
Below is a multi-SCPI selection developed by Thibault Le Coail, Senior Advisor at La Centrale des SCPI:
–Diversified French SCPI : SCPI The heart of the regions
Consisting mainly of offices, commercial premises and businesses, this French SCPI already has more than 300 million euros in capitalization. SCPI Cœur de Régions is one of the most diversified SCPIs with 72 assets and 125 tenants in the 3rd quarter of 2023. This SCPI invests in the French region to benefit from the performance of the economic zones of the country (Bordeaux, Marseille, Paris, Lyon, Toulouse, etc.) .
Yield 2022: 6.40% net.
– Specialized SCPI : SCPI Pierval Health
SCPI Pierval Santé adapts to the demographic development and the growing needs of the population by investing in the medical and social fields, including facilities such as specialized clinics, Alzheimer centers, housing facilities for dependent seniors. (Ehpad) etc. The property variety is spread across different locations which include France, Germany, Ireland, United Kingdom, Netherlands, Italy, Portugal, Spain and Canada.
Yield 2022: 5.35% net.
– Diversified European SCPI : SCPI Origin of Corum
By investing in many types of real estate (office, retail, logistics, healthcare, hospitality and education) in the four corners of Europe (Netherlands, Italy, Belgium, Finland, Ireland, Spain, France, Germany, Lithuania, Slovenia, Estonia, Latvia), SCPI Corum Origin is the most diverse European SCPI on the market. SCPI Corum Origin has 154 buildings and 341 tenants in its portfolio.
Yield 2022: 6.88% net
– Thematic SCPI : SCPI Log in
Recently formed in late 2022, SCPI Log In specializes in the acquisition of logistics and industrial assets. The highly attractive strategy of this SCPI is attracting a lot of interest from many investors. At the end of 2023, it already owns seven buildings spread across Spain, Germany, Italy and the United Kingdom.
Yield: target 6% net in 2023.
Taking control of your financial situation now is critical to envisioning the future and improving your standard of living in retirement. Investing in high-yielding SCPI is an ideal solution for generating solid, regular and long-term income.
The key to success remains surrounding yourself with experts when acquiring stock in SCPI. For personalized investment advice, you can contact La Centrale des SCPI advisers on 01.44.56.00.23 or meet them directly at the only agency specializing in SCPI at 15 rue Saint-Roch, in the 1st arrondissement of Paris