How to avoid mistakes before investing in SCPI?

Publication-EditorialSCPI, four now well-known letters that investors have been twiddling their tongues for years. And in vain! The income of the “stone paper” is enough to make traditional investments green with envy, like a fund in euros for life insurance. Daring health that makes you want to start. However, what mistakes should be avoided when investing in SCPI? How not to miss your first SCPI purchase? Where to buy SCPI? Reply.

Quick Reminder: What is SCPI?

To understand the “madness of SCPI”, you still need to know what SCPI or Société Civile de Placement Immobilier is. It’s just a company that will buy a few buildings and rent them out. Individuals investing in SCPI will then receive SCPI units in return.

Thus, the owner of SCPI shares is entitled to receive the rent generated by SCPI real estate without having to invest the world’s smallest investment in management. All relations with tenants are carried out by the so-called management company.

Simplicity, lack of management and profitability up to 6% – all this is in SCPI. Especially since they are relatively affordable compared to buying a rented apartment.

On the other hand, the size of the real estate portfolio and its good diversification provide better control over real estate risks than traditional single tenant investments.

“We have worked hard to promote investment in SCPI. If savers today are not fully discovering investments, the fact remains that many are wondering who to take their first steps in SCPI with.” explains Lionel Benhamu, founder of La Centrale des SCPI, the largest SCPI platform on the market (www.centraledesscpi.com).

Wrong Step #1 to Invest in SCPI: Invest in Your Bank

Too often, clients turn to their bank to make their investments. A natural reflex, but which can be costly in terms of performance and choice! Banks offer only a very limited SCPI panel compared to the wealth of the global market.

Therefore, in order to open the entire market, covering more than 200 SCPI, it is better to turn to a hyper-specialist, such as, for example, Central SCPI (www.centraledesscpi.com/01.44.56.00.23). The view of a real placement expert also allows you to get full explanations about the functioning of SCPI for investing while being heavily armed.

Wrong Step #2 for Investing in SCPI: Don’t Diversify

There is an old saying that you shouldn’t “put all your eggs in one basket”. If SCPI makes strong internal diversification by investing in a few dozen buildings, diversification can be further improved by selecting multiple SCPIs.

Central SCPI (www.centraledesscpi.com) was thus a pioneer in inventing the multi-SCPI portfolio concept! By mixing several SCPIs, an investor can benefit from the dynamics of several markets at the same time and even from several geographical areas, since SCPIs are also invested all over Europe! And precisely because this platform links to all SCPIs, it has the ability to create the most relevant SCPI portfolios.

Mistake #3 when investing in SCPI: Not looking at ancillary services

There are many clients who have invested in SCPI and then are thrown free with no real follow up. Who says investment without management does not mean investment without monitoring!

That is why specialized companies have created a whole range of services related to subscription to SCPI shares. All at no additional cost to the investor. To Central SCPIclients benefit from a range of portfolio monitoring tools, a private advisor available 6 days a week, and support every year with their tax return.

“During tax filing, we get a lot of calls from people on 01.44.56.00.23 who find themselves helpless because they bought their SCPI shares from a do-it-yourselfer who no longer knows who to turn to. In order to avoid this for our clients, we establish strong relationships that are long-term and personalized” explains Lionel Benhamu, founding partner Central SCPI.

Profitable investment in SCPI: choose a reliable partner!

Thus, in order to start and invest in SCPI, you must choose a stable and reliable partner, as is the case with Central SCPI which has been supporting beginner investors for over 10 years. It gives the investor an educational explanation for investing

The “SCPI madness” is not going to stop, given the appetite of investors for these investments, which yield up to 6%. A blessing in our time of inflation, when the purchasing power of money deserves protection.

Warning: lAn investment in SCPI is not guaranteed either in terms of dividends received or in terms of capital preservation. SCPIs depend on fluctuations in real estate markets. Before making a decision to buy SCPI stock, consult with a professional to ensure that this investment fits your asset profile. Finally, as with any real estate investment, consider the fact that SCPIs are long term investments with a minimum holding period of eight years.

Content Offered by SCPI Central

The editors of Boursier.com did not take part in the production of this content.