Investing money in real estate, all young people think about it. They want to increase their purchasing power in the face of inflation and prepare for their future. However, because there are many real estate investments, it is important not to make a mistake in your choice to invest in real estate. Among the star real estate investments, let us note more particularly the civil real estate investment companies (SCPI) which arouse the covetousness of more and more investors. How do you know which is the best real estate investment? Just read this article.
Why do young people want to invest in real estate?
- Because it’s a solid investment
Unlike stocks or cryptocurrencies, it is not possible to lose your entire investment by putting your money in stone. Our compatriots seek security by investing in real estate.
- Because it is an investment that allows you to benefit from annuities
It is always good not to depend on a single type of income and buying real estate leads to diversifying one’s resources. Rents are paid monthly or quarterly for certain SCPIs. It is therefore very important to be able to count on additional income in case of need.
What are the real estate investments to be wary of?
- Why should you be wary of buying a rental apartment?
Investing your money in a rental apartment is increasingly risky. In addition to stratospheric prices, investors fear above all to be confronted with defaults and this is increasingly common.
Real estate investors also know that management constraints are legion when owning a rental apartment. They also know that property taxes, insurance premiums, condominium fees and the cost of contingencies are getting higher and higher.
- Why should you be wary of buying an apartment under the Pinel regime?
Investing your money in a Pinel apartment can be attractive in terms of the resulting tax reduction. However, the price of these apartments is generally overvalued, with developers taking advantage of the attractiveness of this device.
In addition, if the Pinel apartment that you have acquired does not find a tenant on time, the tax reduction will be called into question with all its consequences.
As observed Lionel Benhamou, one of the founding partners of The Central SCPI (www.centraledesscpi.com), the first French digital savings network: “Many young investors are wary of Pinel because they know that we always end up paying for the gifts we are given. This is why they prefer to invest in performance SCPI shares by calling us on 01.44.56.00.23. »
- Why should we be wary of real estate crowdfunding investments?
Placing your money in real estate crowdfunding is very risky since it is possible to lose the amount of your investment following the bankruptcy of the promoter. It certainly doesn’t happen often, but all you have to do is invest in a bad promoter to see your savings go up in smoke.
In addition, placing your money in real estate crowdfunding means that you only invest in one operation at a time, which does not allow you to pool your risk.
Why is investing in performance SCPI shares the best real estate investment for young people?
- Because the risk/return ratio of SCPIs is the best in real estate
The best performance SCPIs bring in around 6% net per month. As no performance SCPI has ever gone bankrupt, the aforementioned performance does not suffer from any comparison.
- Because performance SCPIs do not require spending time to manage them
The SCPI management work is carried out by the management company that created the SCPI of which you wish to become a partner. Investing in performance SCPIs only requires receiving monthly or quarterly dividends.
- Because performance SCPIs are pooled savings products
Investing in performance SCPIs means becoming co-owners of several tens or even hundreds of buildings. The pooling of SCPIs therefore operates entirely in the event of default of payment by a tenant or of the vacancy of one of the buildings in the portfolio.
- Because SCPIs make it possible to invest in all types of assets
Whether you plan to invest your money in offices, in commercial premises, in warehouses, in business premises, in real estate related to health and education, in hotels and tourist real estate, but also in residential real estate, performance SCPIs cover all types of assets.
- Because yield SCPIs buy buildings in Europe
The real estate market has become European for investors with all the resulting opportunities. Thus, thanks to real estate cycles, it is possible to resell a building in Spain at the top of the cycle and buy another in the Netherlands at the bottom of the cycle. This is notably why European SCPIs are among the best SCPIs, notwithstanding their tax appeal.
How to buy SCPI shares?
- Do not settle for documenting yourself
Reading SCPI ratings and performing SCPI simulations is certainly a good idea, but it is not enough. Besides the fact of not being able to read all the annual reports as well as all the information bulletins of all the SCPIs on the market, it is possible to miss information making it possible to find the best SCPIs.
- It is necessary to seek advice from SCPI specialists
As indicated Thibault Le Coailmanager within The Central SCPI :
“The price of SCPI shares is the same regardless of the distribution channel. We independently distribute all SCPIs on the market. We are able to produce tailor-made SCPI portfolios for our clients from a few thousand euros. Finally, we offer them free and very useful services. »
Investing money in real estate has always been a dream of the French. However, care must be taken not to invest in rental real estate, Pinel or real estate crowdfunding and prefer to buy performance SCPI shares, the best of which yield around 6% net per year with extremely limited risk.
In order to invest in real estate by taking advantage of the specificities of yield SCPIs, it is advisable to approach SCPI specialists, like the consultants of The Central SCPI (01.44.56.00.23), the first SCPI comparator on the market.
Starting to invest young in an SCPI is ideal for maximizing your assets over time. The earlier we start, the more important we can accomplish!
For young investors complaining about the performance of their life insurance contracts in euro funds, it might be time to turn to performance SCPIs which increase purchasing power for their holders. Isn’t that preferable to the fact of losing some as with life insurance contracts in euro funds?
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, seek professional advice 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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