What is Fractional Real Estate?

Publi-editorial — Real estate investment companies (SCPI) have been part of the French financial landscape for more than 50 years. With a capitalization that exceeded more than 86 billion euros as of September 30, SCPIs are fractional real estate. What makes SCPIs so attractive to real estate investors? What is Fractional Real Estate? Without further ado, let’s discover the answer to these questions.

What is Fractional Real Estate?

Real estate investment companies (SCPI) have been part of the French financial landscape for more than 50 years. With a capitalization that exceeded more than 86 billion euros as of September 30, SCPIs are fractional real estate. What makes SCPIs so attractive to real estate investors? What is Fractional Real Estate? Without further ado, let’s discover the answer to these questions.

Why is the success of SCPIs undeniable?

• SCPIs are real estate products

Rather than speculating on the stock market or seeing their purchasing power erode with their livret A or life insurance contract in euro funds, the French prefer to invest their money in real estate.

It must be said that real estate is a solid asset that has always made it possible to collect rents, and therefore rents. Unlike stocks or bonds, real estate is not just a piece of paper and remains a tangible value.

• SCPIs protect the purchasing power of their shareholder shareholders

Last year, the best SCPIs returned more than 6% net and the same should be true in 2022. This performance allows their partners to retain their purchasing power, which is not the case for the Livret A and life insurance contracts in euro funds.

• SCPIs can be acquired on credit

Real estate is the only asset that can be purchased on credit. Using a leverage effect to invest leads to a faster increase in purchasing power, especially since it is the tenants who will finance part of the loan.

• SCPIs can be purchased in temporary dismemberment of ownership

Investing your money in the bare ownership of SCPI shares offers the possibility of paying less for your shares without tax. Indeed, the dividends are paid into the account of the usufructuary.

As pointed out Gregory Moulinierone of the founding partners of The Central SCPI (www.centraledesscpi.com), the leading French digital savings network: “The three purchasing methods for SCPIs satisfy all customers who contact us at 01.44.56.00.23. Some favor their purchase of SCPI shares on credit while others swear by the purchase of their bare ownership. Many also play on all fronts. “

Why do we speak of split real estate when referring to SCPIs?

• SCPIs are pooled savings products

No partner of the SCPI owns alone such and such a building of the real estate concerned. An SCPI buys buildings and its capital is divided into shares. Each investor thus owns part of the assets of the SCPI in proportion to the number of shares he holds.

Investing your money in split real estate therefore allows you not to depend on a building since the park of the largest SCPIs includes several hundred assets and to limit the risk of non-payment to a minimum.

• The real estate of SCPIs can be split between several types of real estate assets

Office SCPIs are the best known, but they are not the only ones. It is also necessary to take into account the SCPI walls of businesses, the SCPI logistics, the SCPI health, the SCPI education, the SCPI walls of hotels and the SCPI tourism.

Thus, diversified SCPIs that mix several types of the aforementioned assets must be considered at their fair value to buy them in any SCPI portfolio worthy of the name.

• The real estate portfolio of SCPIs can be split between several countries

Some investors are not yet ready to buy buildings outside our borders through their SCPIs, but this is not the case for the majority of them. European SCPIs thus make it possible to pool one’s real estate assets both in the euro zone and in almost all European countries.

As dividends from European SCPIs are not subject to social security contributions at the rate of 17.2%, their appeal is even more considerable.

Where to find out how to invest your money in fractional real estate?

• Fractional real estate requires the use of incomparable consultants

It is therefore absolutely necessary to be advised by SCPI specialists to make a portfolio in split real estate.

This is all the more necessary since the price of SCPI shares is the same regardless of the distribution channel. In addition, clients of these consultants enjoy additional services for free.

• The Central SCPI is the unrivaled leader in fractional real estate

Created more than ten years ago by its founding partners (Lionel Benhamou, Gregorie Moulinier and Véronique Baron), The Central SCPI (www.centraledesscpi.com) delights her clients who recommend her to family members and friends.

“ We work with all wealth profiles, both young workers and retirees, not forgetting business leaders who want to invest their cash in SCPIs. There is no small client for us since with a few thousand euros, it is very easy to build up a diversified SCPI portfolio. “ Explain Thibault Le Coailmanager within The Central SCPI.

Owning real estate, whether it is housing or rental property, is the dream of all French people. With regard more specifically to real estate, buying real estate, that is to say split real estate, allows you to benefit from dividends of more than 6% net per year for the best SCPIs.

In order to find all the SCPIs online, it is better to inquire directly with the leader, namely with The Central SCPI (www.centraledesscpi.com/ 01.44.56.00.23), the first SCPI comparator on the market.

Because the rise in prices is likely to last throughout the next year, or even longer, it is fundamental to invest your money in fractional real estate in order to be part of a club that has more than a million members, that investors who protect their purchasing power.

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.

Content proposed by La Centrale des SCPI