Between high rates and inflation, the real estate market is not going to be easy in 2024. In this context, many investors are wondering if investing in real estate is still valid.
So, is it pure madness to invest in real estate today or is this the perfect time to do business and create wealth?
Real estate in 2024: an opportunity provided you choose the right way to invest
Credit rates and inflation weigh on property prices. In addition, standards make rental management more complex, in particular the famous regulations on “energy strainers”.
But real estate has a major advantage: it is almost the only investment that allows you to create real additional income. And the returns are much higher than the 3% of Livret A accounts and the 2.50% of life insurance in euro funds.
Investing in real estate is therefore always a wise solution provided you do it in an informed manner, that is to say by simplifying the management part as much as possible and choosing real estate with high potential.
This is why many investors set their sights on SCPI investment. A way to invest in real estate without management which allows you to aim for returns of up to more than 7%!
Investing in a rental studio and having average profitability with strong management is like madness. However, choosing to invest in SCPI investment, managing nothing and having higher profitability, is a healthy and wise decision.
How much can you earn by investing in real estate thanks to SCPI investment?
“This is a question many of our customers ask. Based on a return of 6%, a client who invests €100,000 in SCPI can expect to earn around €500 per month. On a rental studio at the same price, he would have had between €350 and €400 per month with the addition of management. And on the euro fund of a life insurance contract, it would fall to around €200 per month” explains Grégorie Moulinier, founder of The SCPI Centralonline investment platform (www.centraledesscpi.com).
In the current context, the returns of the best SCPIs are even pushed upwards. The best SCPI of 2024 thus returned 8.16%, it is the SCPI Transitions Europe which is a way of investing in real estate throughout Europe!
Good to know : by investing €10,000 in SCPI, a saver can create additional income of around €50 per month. An already significant amount which allows you to easily increase your purchasing power.
Where to invest in real estate with SCPI investment?
Investing in real estate with the SCPI can be done entirely online thanks to specialized platforms. This is the case of The SCPI Central (www.centraledesscpi.com) which allows you to invest in real estate throughout Europe with a very wide selection of SCPIs.
On these platforms, savers can carry out simulations of their real estate investment and benefit from advice from dedicated experts.
“At the beginning of 2023, I simply called the 01.44.56.00.23 to get advice because I had €45,000 on a PEL which was coming due. By investing this money in SCPI, I created additional income of around €225 per month” explains Jean-Louis, client of The SCPI Central.
Investing in real estate in 2024 is therefore not crazy, provided you do it in an informed manner. Investors who take the time to educate themselves, diversify their investments and remain attentive to market developments can find great opportunities such as SCPI investment which today offers performances of up to 7% for the best SCPIs. A golden opportunity to prepare for retirement or simply to improve the performance of your savings.
Warning
Investment in an SCPI is not guaranteed, both from the point of view of dividends received and that of capital preservation. SCPIs indeed depend on fluctuations in the real estate markets.
Before making any decision to purchase SCPI shares, seek advice from a professional to be certain that this investment corresponds to your asset profile.
Finally, like any real estate investment, take into account the fact that SCPIs are long-term investments whose minimum holding period cannot be less than eight years.
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