SCPI: Is It Worth Investing After Retirement?

For many French people, retirement is an important step. Some of them also lack information on this topic, while others are worried about how much income they will receive during this period. Thus, the latter believe that additional resources are needed to supplement the pension.

According to a recent study, more than 40% of current retirees are preparing for their active life. Lack of knowledge about available investments significantly hinders the growth of this index. Would it be possible to invest in SCPI after retirement?

What is SCPI?

Civil Real Estate Investment Company (SCPI) is a form of company that allowsinvest your capital in exchange for shares equal to its investment. Available to any natural or legal person SCPI allows unit holders to become indirect owners of real estate.

This method of offering savings to the public is useful for invest in different types of real estateincluding housing, offices, buildings specific to a particular area (tourism, education, health, logistics, etc.) or buildings abroad.

The role of the management company is to take responsibility for managing these assets, find tenants and ensure the maintenance of houses. It also has the function of redistribution between savers of rental income, which is deducted from the various management costs.

If you want to invest in SCPI, feel free to do a simulation:

Benefits of investing in SCPI

For the French today, preparation for a long-term pension necessarily involves investing in real estate. It is a tool they increasingly prefer, allowing them to increase assets and earn a regular income, while being an effective means of transfer (especially when stocks are acquired in life insurance).

However, there are many restrictions on investing in real estate, whether it is the difficulty of renting (finding tenants, unpaid rent, administrative documents), or lack of capital.

In this direction, SCPI is the preferred tool due to various advantages:

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  Pooling of risks

The advantages of SCPI are the ability to combine risks. It brings together several savers and invests in buildings occupied by a large number of tenants. This investment instrument benefits from a wide diversification of its assets, which provides regular quarterly income.

In the case of renovations or vacancies, savers will remain confident of earning additional income, as they are guaranteed the opportunity to regularly allocate and build up reserves during SCPI time.

On average it is necessary consider a profit of about 5%. Visibility in terms of profits is a guarantee for savers, especially for those who want a regular income. To avoid any obstacles, certain elements should be considered before investing in SCPI. It is also necessary to consider two criteria: the rent to guarantee income and the value of shares for resale.

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  Invest in a flexible and affordable way

Investing in SCPI does not require a significant budget. The share of SCPI often costs several hundred or thousands of euros, of which it is possiblegain access to real estate with much less resources than for the direct purchase of real estate. In other words, in this sense, financial resources are flexible according to the investment capacity of the investor.

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  No management restrictions

When investing in real estate, you need to manage and find tenants on a daily basis. It is also necessary to bill for rent, maintain the premises and take responsibility for managing rent payments. Subscribing to SCPI shares avoids all of these steps.

The management company provides all employees with all the detailed information from the quarterly bulletin and annual report. She also sends him a document for the declaration of income received for tax purposes. However, it is important to move towards a quality manager.

What are the benefits #SCPI ?
We answer ⤵️
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– SCPI – Portail-SCPI.fr (@PortailScpi) June 6, 2022