investment in real estate from 200 euros

Focus on this passive real estate investment with an attractive risk/reward ratio.

SCPI allows you to invest in real estate from 200 euros. They offer the same benefits as traditional rental investments (rent, resale capital gains, buying on credit) while erasing the main limitations: no looking for a property to buy, no job, no looking for a tenant, no risk of default. -payment…

Investing in SCPI, basic principles

SCPI (Société Civile de Placement Immobilier) are companies that buy property in France and abroad. They then allow individuals to join them by buying shares in SCPI.

When you buy shares, you receive ownership of a portion of the property acquired by the company in proportion to the amount of your investment. This title deed allows you to collect rent and benefit from possible capital gains on the day you decide to resell your shares.

The rent is distributed quarterly. On average, they amount to 4.5% of the investment amount per year. If you buy SCPI shares for €10,000, you will receive a quarterly rent of €112. The property acquired by the company is annually revalued in accordance with the change in the price of the property. Therefore, you can expect your SCPI shares to rise in value over time in the same way as an apartment or a house.

An extremely attractive investment

Historically, SCPIs have generated an annual return of 4 to 6%. Some of them even exceed 7%. Suffice it to say that it is hard to find another financial investment that offers such returns and poses such a low risk of loss.

Experts evaluate the risk level of financial investments on a scale from 1 to 7 (1 low risk, 7 high risk). On average, this rating fluctuates between 3 and 4 for SCPI. By comparison, stocks in the stock market are rated 7/7 (and cryptocurrencies… are not rated). Therefore, SCPI is an investment with moderate risk and an attractive return.

In addition, the purchase of SCPI shares can be financed with a bank loan. A de facto long-term loan would create a significant legacy by offsetting the financial impact of monthly payments through rent.
It should be noted that the interest on the loan is deductible from the income of the SCPI. Good news for any investor taxed at a marginal tax rate of 30% or more.

Better investment than rent

Many French people are attracted to investing in rent because it allows them to collect rent (sometimes even pay off a loan with it!) and increase their assets over time. Investing in a REIT is exactly the same, except you cannot live in the property you are investing in. For example: an investment from 200 euros, where buying an apartment for rent can cost several hundred thousand euros.

In addition, companies manage everything: SKPI buys goods, performs the necessary work, rents them out, finds tenants, takes care of day-to-day maintenance and is responsible for collecting rent. All you have to do is send your RIB and wait for your return;

This investment is risk-free: when renting, you buy one property that you rent out. If you have a problem (claim, non-payment, no tenant, etc.), you no longer receive rent, but you still need to repay the loan. With SCPI, you are investing in dozens or even hundreds of properties at the same time. The risk is divided, so the problem for one is almost painless.

Please note that, as with rental investments, SCPIs come with costs. The subscription fee can sometimes reach 12%. However, there are SCPIs without entry fees (beware of potentially high exit or management fees) and online services that offer a cashback discount. Having these costs, even if reduced, makes investment in SCPI medium-term (usually 7 to 10 years is recommended). Therefore, investing in SCPI is the ideal solution for those who want to invest in real estate without the associated restrictions, even with a small start-up capital.