Civil real estate investment companies (SCPI) are an investment solution that is increasingly appealing to investors who wish to do so diversify your portfolio and generate rental income. This article looks at various aspects of SCPIs, particularly their performance, the ability to turn them into a source of income, as well as their usefulness in preparing for retirement.
SCPI performance
SCPI’s performance may vary depending on their classification, management and the real estate sectors in which they invest.. However, it is common to track the included annual returns between 4 and 6%. the best SCPI. So if you decide to invest in a well-established SCPI such asSavings Pierre Or Immortalthe profitability potential can be interesting.
Leverage through credit investing
Investing in SCPI can also make this possible benefit from leverage through the use of a real estate loan. Individuals do have the option take a loan to acquire SCPI shares. This may allow them to take advantage of the current low interest rates and put their money in a safe haven: real estate.
Asset diversification
SCPIs provide access to diversified real estate portfolio geographically and in terms of real estate typology (housing, offices, industry, businesses, etc.). An investor can thus benefit from some stability by avoiding the risks associated with holding one property.
SCPI as a source of income
In addition to their potential to generate regular returns to associates, SCPIs can also be used as a real source of income. The rents received by the company are actually redistributed to investors in the form of dividends or property income. These amounts can therefore be received at regular intervals, usually quarterly. This can be an interesting solution for people who want it earn additional income without having to go through an intensive search for tenants and the day-to-day management of the property.
Tax optimization using SCPI
When they receive income from SCPI, partners are taxed as income from property under income tax. However, there are several legal mechanisms that make this possiblereduce this tax burdendepending on the type of SCPI chosen and the saver’s personal situation. For example, certain types SCPI allows you to use Pinel or Malraux systems and thereby reduce his taxation.
SCPI for retirement preparation
Considering their revenue potential and the regularity of the income received, SCPIs are considered by some experts to be an ideal real estate investment solution for portfolio diversification in preparation for retirement. People investing in SCPI will be able to receive additional rental income after retirement. SCPIs could thus contribute to improving purchasing power and maintaining living standards during this transitional period with seniors.
Property transfer and SCPI
Finally, it is important to note that SCPI shares can be passes to the heirs as part of the inheritance. People who build real estate with this type of investment will be able to calmly think about passing it on to their descendants.
Tips for choosing the right SCPI
Make sure choose the best SCPI according to your goals, several criteria should be taken into account. Among these:
- History and quality of company management
- Past performance (dividends and share price performance)
- Geographical and sectoral diversification
- Subscription and management fees
- Investment strategy (short-term, long-term, targeted sectors, etc.)
- Appropriateness to personal goals (additional income, retirement preparation, wealth transfer, etc.).
In short, SCPI represent real estate investment solutions which offers several benefits for investors looking to diversify their portfolio, generate rental income or even prepare for retirement. However, it is important to be well informed and choose the most effective SCPI to maximize your potential returns.