SCPI investments: everything you need to know about this type of investment

What is SCPI?

As the name suggests, the Société Civile de Placement Immobilier is a civil society whose purpose is to invest in real estate. It operates as a joint-stock company.

At the level of investors, we deal with partners who own one or more shares of the company: therefore, they can be individual or institutional investors.

To take part in the adventure, investors have a choice between three main types of SCPI: fiscal, capital gains and yield. In addition, the income received from the ownership of SCPI shares consists of two types:

– Rent: which comes from renting unfurnished real estate.

– Financial: from cash investments, dividends, short-term capital, etc.

Except all about SCPI performancewe should know the benefits of such investment.

What are the benefits of SCPI?

The benefits of SCPI for investors are numerous:

– SCPIs offer significant tax advantages, meaning returns from SCPIs are generally higher than from conventional investments due to the special tax treatment SCPIs enjoy. Indeed, the income received by the latter, in particular, is exempt from duty on free transfer, tax at source, income tax, etc.

– In addition, SCPIs are exempt from real estate tax and housing tax, and enjoy a tax rebate.

– SCPIs allow you to take advantage of the benefits of building a real estate legacy with credit while earning income indexed to the market’s inflation curve.

– Invest your money without worrying about managing it. Indeed, the management company in which you will hold the securities takes care of all the investments, including the purchase of the property, the rental of the property and the collection of rent.

What is SCPI performance?

SCPI of productivity is SCPI in which the only resource is rent. SCPI agencies use the savings of individuals, in particular, to invest in rental properties through the purchase of goods. In addition, SCPI deals with all management: purchase, search for tenants, collection of rent, payment of dividends to depositors, etc. Thus, performing SCPIs are SCPIs that invest not in stocks or financial securities, but in real estate.

How to invest in effective SCPI?

First of all, it is important to choose the SCPI that best suits your needs. To do this, you need to assess your investment goals and the risks you are willing to take. It is also important to analyze your personal situation to see if you can make regular payments. This is, for example, if you have no other financial assets in your name or if you have a mortgage to pay off.

In order to invest in an effective SCPI, you must be particularly careful about the taxation of the investment. Indeed, given the tax advantages associated with the SCPI regime, an investor may indeed be tempted to favor tax fact over financial gain. In this case, it would be possible to invest in SCPI, which does not generate enough income to allow you to benefit from the tax benefits, but is very loss-making in terms of returns. This is where you can turn to the experts at a wealth management agency to help you choose the SCPI that best suits your needs.