what you need to know before investing

SCPI is a company whose purpose is to provide real estate portfolio management. To do this, he has capital belonging to the shareholders, with which he will make investments in real estate and which he will manage. The structure is responsible for market research, procurement, property management, accounting for the purpose of transferring investment income (rental income, capital gains). Before starting this type of investment, it is necessary to know the different types of SCPI, list its investment objectives and seek professional support.

Which type of SCPI should you invest in?

There are three types of SCPI. First, productive SCPIs invest primarily in real estate for professional use. As a rule, they diversify purchases in different fields of activity and in different types of buildings (offices, shops, warehouses, factories, etc.). Taxable SCPIs then earn income by investing in the construction or renovation of real estate for residential use. SCPIs, on the other hand, rely on the building’s appreciation in the market to achieve significant capital gains on exit. In this case, management companies will bet on properties with high appreciation potential.

Should I choose SCPI with fixed or variable capital?

This is one of the questions that many investors ask themselves. SCPIs with share capital cannot accept new investments after acquiring all of the company’s capital shares. If a unitholder wants to join the SCPI or buy more units, he has to wait for the investors to sell theirs. Capital increase can only happen under very strict conditions. SCPI with variable capital can open its capital to investors at any time.

What are my priority investment goals?

When investors wonder how to choose the best SCPIs to invest in, this is a very common question they are asked in response. Indeed, as we have just seen, there are different types of SCPI, but there are also different types of investors. They do not have the same investment goals. Some want to get a source of additional income in a more or less long term perspective. Others would like to gradually increase the value of their capital. Finally, some people want to exempt some of their income from tax and find it in SCPI an easy way to invest in real estate using tax benefits. Apart from this, the choice of SCPI is also made keeping in mind the amount to be invested initially. What is its amount? Is it equity or will the share purchase be financed by a bank loan? All these questions will help determine the best SCPI or SCPI to invest in.

Surround yourself with the right professionals

If you do not have any real estate or financial knowledge, it is better to consult with advisers who specialize in SCPI investments to benefit from real expertise in these areas (real estate, law, finance, taxation, accounting, law, etc.). ). These professionals accompany their clients at all stages steps to invest in SCPI and allow them to find the type of investment that best suits their needs.

Also read our guide How to invest in SCPI in 2022?

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All of our information is general in nature. They do not take into account your personal situation and are in no way a personalized recommendation for transactions and cannot be equated to a financial investment advisory service or any inducement to buy or sell instruments. The reader is fully responsible for the use of the information provided without any claims against the publishing company Cafedelabourse.com. The publisher of Cafedelabourse.com shall not be liable in any way for any error, omission or improper investment.