Purchasing power can be defined as the ability to purchase market goods and services for a given amount of money. It is the capacity of a household to consume in relation to its income. With prices rising by 2.8% in 2021, in particular due to the very significant increase in energy prices, the purchasing power of the French is at half mast. However, this is not a fatality. There is indeed a way to increase its purchasing power. This means has a name: civil real estate investment companies or SCPI. Why do performance SCPIs increase purchasing power? This is what will be revealed to you.
Why did the purchasing power of the French decline in 2021?
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With an inflation increase of 2.8% in 2021 due in particular to soaring energy prices and rising food prices, but stagnating wages and a limited increase in pensions, the purchasing power of the French has declined in 2021.
This decline in purchasing power is even more marked for low-income families since the rise in food prices has a huge impact on their budgets. theremains to live,i.e. the sum thatit remains in euros for a person or a family to live on a daily basis after having removed from their income all the essential and compulsory charges, is more and more constrained.
As pointed out Lionel Benhamouone of the founding partners of The Central SCPI (www.centraledesscpi.com), the first French digital savings network: “In addition to health constraints, the French are facing a decline in their purchasing power. It’s time to act. This is what customers who call us on 01.44.56.00.23. These men and women invest in performance SCPIs in order to increase their income.”
Why does investing in performance SCPI increase purchasing power?
Capital income can offset the inadequacy of labor income (wages, salaries) or retirement pensions. In order to maintain its purchasing power emanating from its capital income, it was necessary, in 2021, to receive a return of at least 2.8%. This is much more than the return on the Livret A which was 0.5% last year and than that of life insurance contracts in euro funds which yielded on average around 1% to their holders.
Conversely, the best-yielding SCPIs brought in around 6% net to their shareholder shareholders. The purchasing power of the best yielding SCPIs was therefore 3.2% (6 – 2.8). Knowing that the performance of the best yielding SCPIs has fluctuated around 6% for many years, investors are regularly increasing their purchasing power.
How do SCPIs increase the purchasing power of their unitholders?
Investing in performance SCPIs is like investing your money in shared real estate. In concrete terms, with the partners’ money, the management companies whose only business is to buy both business real estate and residential real estate. Business real estate includes offices, retail premises, business premises, warehouses, real estate related to health and education, etc. Residential real estate, for its part, consists overwhelmingly of apartments. rental.
With the rent money paid by the tenants, SCPIs pay monthly or quarterly dividends. The partners do not have to worry about anything since all the work is done by the management companies. The latter take advantage of their strike force to buy assets under good conditions in order to maximize the return offered to the partners.
SCPIs buy very large assets, which would not be possible for individuals. Yield SCPIs are also buying more and more real estate in Europe (euro zone and the rest of the continent) to further diversify their portfolios and allow their partners to benefit from very attractive taxation. European SCPIs are undoubtedly among the best yielding SCPIs.
How to increase your purchasing power by investing in performance SCPIs?
The very important choice of the number of SCPIs complicates the possibility of making a tailor-made SCPI portfolio on your own. To do this, you would have to read all the information bulletins and all the annual reports of SCPIs, a daunting task. While it is possible to read SCPI ratings and perform SCPI simulations, this data is not available in real time.
This is why, in order not to make a mistake in your choice of SCPI, the easiest way is to seek advice from SCPI specialists who distribute all the SCPIs on the market and who can, as necessary, find for their customers the best SCPI credit. As the price of SCPI shares is the same regardless of the distribution channel, do not hesitate to make an appointment with one of their dedicated consultants.
As noted Theo Darromanmanager within The Central SCPI: “Thanks to our advice, it is easy to increase your purchasing power by investing your savings in performance REITs. Yield SCPIs can be purchased for a few hundred euros and it is possible to build a tailor-made SCPI portfolio for a few thousand euros. It’s a great way to increase your purchasing power as your money comes in.”
The question of purchasing power is a question that increasingly concerns the French, especially the most modest and the middle classes, but not only. This is why our compatriots seek to make their money work better. To do this, nothing beats the purchase of performance SCPI shares, which constitutes insurance against rising prices since rents are indexed to inflation.
However, before making your choice of SCPI, you must seek advice from specialists, such as those of The Central SCPI (01.44.56.00.23) the first SCPI comparator on the market. Calling them costs nothing but on the other hand allows you to increase your purchasing power.
Doing accounts has become a necessity for the French and some spend a lot of time there. By investing in performance SCPI shares, it is possible to increase your purchasing power and therefore have fun and have more time. So why not you?
Warning
Investment in an SCPI is not guaranteed, both from the point of view of the dividends received and that of the preservation of capital. SCPIs depend on fluctuations in the real estate markets.
Before any decision to purchase SCPI shares, get 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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