Editorial – Receiving additional income for retirement has become the goal of many savers. Many French people are looking for the right medium / long term investment and millions of them turn to real estate every year.
Real estate investment allows savers to diversify their wealth and create additional income, however, there are many ways to invest in stone, so learning about the different investments is essential so as not to be mistaken.
So how do you choose between buying an investment property and acquiring shares in SCPI?
1- The disadvantages of apartment buildings
Investment property allows, through the acquisition of one or more properties, often apartments, to benefit from additional income from rents paid by tenants, however this long-profitable investment is experiencing a drop in its yield and has several disadvantages.
Let’s take the example of an investment of 700,000EUR:
An investment of 700,000EUR corresponds to the purchase of a small building on 2 levels, located in a provincial town such as Rouen, Nantes or even Aix-en-Provence, composed of 4 apartments of 25M2 rented for 350EUR each.
Whatever the type of property selected, the result is an investment that is ultimately not very profitable if we consider the countless charges related to the management of a building such as insurance and condominium charges etc … but also the taxation on the income which will systematically reduce the yield.
In addition, real estate held directly generates a lot of management, whether it is repair or improvement work, finding the tenant, organizing visits, choosing craftsmen, or even constant availability, they are so many worries on a daily basis.
Very time-consuming management
This is the reason why the majority of French people who have experience in rental management do not repeat the experience. As evidenced by Anne Cocagne, Consultant at La Centrale des SCPI, “many of our clients have sold investment properties, in particular because of their very time-consuming management and even sometimes for squat problems or serious deterioration. Following their investment in SCPI, they are all really satisfied!”.
Investing in investment property is ultimately a source of many disadvantages, but some alternative investments such as investment in SCPI allow savers to become owners while avoiding hassle.
2- SCPI, better investment than investment property
The French want to give meaning to their savings
The SCPI unlike the real estate of report do not generate any management and therefore represent the investment without rental worries.
SCPIs not only allow savers to diversify their assets and benefit from additional income, but also to orient their investment in line with their convictions. Indeed, the French are more and more sensitive to certain subjects such as sustainable development and want to give meaning to their savings.
There are hundreds of SCPIs, European general SCPIs or even SCPIs specialists in health, socially committed SCPIs, or SCPIs labeled SRI. A personalized selection within the framework of the constitution of a multi-SCPI portfolio allows the investor to take part in large-scale projects.
As part of an investment of 700,000EUR, it is possible to build a multi-SCPI portfolio, for example by selecting the SCPI:
- Pierval Health, SCPI specializing in the medical sector, invested in France and Europe
- Activimmo, SCPI specialized in the field of logistics and e-commerce sector in strong growth.
- Sofidy Europe Invest, Generalist European SCPI, invested in major cities and all sectors of activity.
- Eurovalys, SCPI specializing in the office sector, invested in the major cities of the German Länders
- Kyaneos Pierre, 100% French SCPI specializing in residential real estate committed to a policy of reducing the energy consumption of its real estate stock
This example of a multi-SCPI portfolio offers a strong pooling of risk and diversification which allow savers to benefit from an average return of 5% per year and advantageous taxation.
Performance SCPIs allow savers to invest from home and to gain priority in goods as part of a strategy close to their convictions!
The perfect anti-drop in purchasing power investment
Thus, the acquisition of SCPI shares constitutes the perfect anti-drop in purchasing power investment in fact, the real estate held by management companies is indexed to inflation. Thanks to their strong pooling, SCPIs are therefore an excellent alternative to investment property.
Today retirement is for the French a crucial subject, it appears moreover, in all the programs of the candidates at the dawn of the 2022 presidential elections.
Unlike investment properties, with which many French people have been greatly disappointed because they did not allow them to receive sufficient income to supplement their retirement, SCPIs represent the flagship investment of tomorrow to receive additional retirement income, they offer a much higher return than investment properties or even the euro life insurance fund.
The investment in SCPI can be done online in a 100% digital way, several platforms exist, one of them has become the reference site, it is the Central of SCPI www.centraledesscpi.com it puts at your disposal responsive consultants available to advise you in building a multi-SCPI portfolio that suits you.
Warning : investment in a SCPI is not guaranteed, both from the point of view of dividends received and that of capital preservation. SCPIs depend on fluctuations in the real estate markets. Before any decision to buy SCPI units, seek professional advice to be sure that this investment matches your wealth profile. Finally, like any real estate investment, take into account that SCPIs are long-term investments whose minimum holding period cannot be less than eight years.
Content offered by the Central SCPI
The editorial staff of Boursier.com did not participate in the production of this content.