real estate investment from 200 euros

Focus on this passive real estate investment with an attractive risk / return ratio.

SCPI allows you to invest in real estate from 200 euros. They offer the same benefits as traditional investment in rent (rent, capital increase in resale, purchase on credit), while erasing its main limitations: no search for real estate to buy, no work, no search for a tenant. , no risk no – payment…

Investing in SCPI, basic principles

SCPI (Société Civile de Placement Immobilier) are companies that buy real estate in France and abroad. They then allow individuals to join by buying shares in SCPI.

By buying shares, you get ownership of part of the property acquired by the company, in proportion to the amount of your investment. This title document allows you to collect rent and benefit from a possible capital increase on the day you decide to resell your shares.

The rent is distributed quarterly. On average, they account for 4.5% of the amount invested per year. If you buy SCPI shares for € 10,000, you will receive a quarterly rent of € 112. Real estate purchased by the company is revalued annually in accordance with changes in property prices. So you can hope that your SCPI shares will rise in price over time, as will your apartment or house.

Extremely attractive investment

Historically, SCPI has paid an annual return of 4 to 6%. Some of them even exceed 7%. Suffice it to say that it is difficult to find another financial investment with such a return and such a low risk of loss.

Experts assess the level of risk of financial investments on a scale from 1 to 7 (1 low risk, 7 highest risk). On average, this rating ranges from 3 to 4 for SCPI. For comparison, stocks in the stock market have a rating of 7/7 (and cryptocurrencies… do not have a rating). Thus, SCPIs represent an investment with moderate risk for attractive returns.

In addition, you can finance the purchase of government securities with a bank loan. De facto, a long-term loan will create a significant legacy, offsetting the financial impact of monthly rent payments.
It should be noted that interest on the loan is deducted from the income of the STI. Good news for any investor who is taxed at a marginal rate of 30% or more.

A more profitable investment than rent

Many French people are attracted to rent investments because it allows them to collect rent (sometimes even repay the loan!) And increase their assets over time. Investing in REIT is the same, except that you can’t live in the property you are investing in. For example: investing from 200 euros, where buying an apartment for rent can cost several hundred thousand euros.

In addition, all are managed by companies: the STI buys goods, performs the necessary work, rents them out, finds tenants, takes care of daily maintenance and is responsible for collecting rent. All you need to do is send your RIB and wait for your return;

This investment is risk-free: when you invest in rent, you buy one property that you rent. If you have problems (claim, non-payment, absence of tenant, etc.), you no longer receive rent, but you still have to repay your loan. With SCPI, you invest in dozens or even hundreds of objects at once. Thus, if the risk is shared, the problem alone is almost painless.

Note that, as with a rental investment, there are costs to SCPI. The subscription fee can sometimes reach 12%. However, there are SCPIs without entry fees (beware of potentially high exit or management fees) and online services that offer a cashback discount. The presence of these costs, even reduced ones, makes investments in SCPI medium-term (generally recommended from 7 to 10 years). Therefore, investing in SCPI is an ideal solution for those who want to invest in real estate without appropriate restrictions, even with a small start-up capital.