Investing in SCPI in 2022: Know Everything Before You Invest

There are several options available to you to invest in SCPI (Société Civile de Placement Immobilier). You will be able to access real estate simply without any of the management problems associated with owning your own property. Each type of SCPI investment has its own advantages and disadvantages.

Understanding SCPI

This form of “enterprise” is a fund that collects government savings and invests it in rental property. Contributors become “partners” and almost every quarter receive the collected rent minus commissions. Every year, the value of real estate is appraised or appraised. Therefore, if the value of the property has increased, the price of the share will increase. Conversely, if it falls, then the price of the stock goes down.

Multiple families

In general, there are several types of SCPI. Not all of them refer to the same investments. The most common of these are called profitable (eg SCPI Corum), which usually invest in shops or offices. These societies advocate a regular redistribution of income. There are also so-called fiscal ones: they are the most numerous. The latter are positioned in the segments that give tax incentives, which can be found on Portail-SCPI.

To invest, you need to contact the management company through a bank or, ideally, through an independent consultant. Indeed, it is also possible to get more options by contacting money management advisors or specialized websites.

Ask a specialist free !
>> Portail-SCPI is a site dedicated to investing in SCPI to help you with your approach. A wealth management consultant will help you free of charge.

There are four ways to finance an investment in SCPI: credit (mortgage), cash investment (savings), life insurance, or dismemberment. Each funding method has its own advantages and disadvantages. Then you need to compare his financial situation and compare it with his savings and investment projects in order to choose the most suitable option. Every investment is a deliberate action that takes into account the study of several elements: debt capacity, long-term vision, income need, etc.


Trustpilot Stars

Trustpilot Logo“>

How SCPIs Work

To understand how it works and consider this savings method, you must evaluate all aspects of them.

Purchase

The purchase of property (and therefore SCPI securities) is carried out directly in the primary market through shares issued by companies. It can also be sold on the secondary market. The buyer then purchases the shares resold by the holders. Those known as “capital capital” are not permanently available and are only open to the primary market during capital increases. Those with “variable capital” are open all the time: managers control the closing of the subscription when they think that market conditions are unfavourable.

Resale

Resale is carried out directly to management companies. For SCPI with variable capital, the manager decides to redeem the units at the withdrawal price. The latter corresponds to the current subscription price minus costs. Finally, he cancels them.

In the case of fixed capital, the shares for resale are then offered on a secondary market owned by the manager. In this market, the selling prices are directly opposed to the offered buying prices. The unit acquisition costs are deducted from the sale price: thus, it is 10% below the purchase price. Buyers will have to hold their shares for two years if they want to win despite the 5% annual return. They are stored on average twenty-two years.

Income

As a general rule, income from SCPI is transferred quarterly to the depositors’ bank account. They are then stated as a percentage minus costs and are expressed as unit purchase costs (including all costs). Then the investor receives his first income in the (whole) quarter after the subscription. Income earned from SCPI investments is taxed as “property income”.

Expenses

Fees are often high and rarely clearly stated. As a rule, they range from 10 to 14% upon entry (taking into account the registration fee close to 5%). These amounts may vary depending on the nature of the SCPI: fixed or variable, as well as depending on the market in which it was acquired (primary or secondary).

The fees are used to reward the management company who will withhold 10% of the rent as a “management fee”. For professionals, these costs are comparable to the direct acquisition of real estate, as well as the costs of managing them when it is entrusted to a property manager. On the other hand, transfer or withdrawal costs may be foreseen and are the responsibility of the buyer. These costs remain more measured.