Special investments: what is anti-inflationary investment?

For almost a year, inflation has become an increasingly visible evil. Having hit 5.8% in the past twelve months, inflation is hurting the purchasing power and well-being of households, especially the humblest. However, rising prices are not inevitable. There are effective anti-inflationary investments, in particular the purchase of shares in real estate investment companies (IRCI). What are the main anti-inflationary investments and which one is better? Just read this article to find the answer to this question that is on everyone’s mind.

Why does gold provide only partial hedge against inflation?

  • ‘Cause it’s not interesting

Among anti-inflation investments, we hear a lot about gold. Whether you buy physical gold (bars or coins) or paper gold (trackers or certificates), gold does not earn interest that increases your income. Thus, investing in gold is tantamount to speculating on its price in the hope that it will rise. Of course, the price of gold can go down, which would seem strange in times of inflation, or stay stable. So from 1uh March 2022, the price of gold in euros did not change, while inflation increased.

  • Because it requires a storage fee or a storage fee

Storing physical gold comes at a cost. You have to keep it either in a safe in your bank or in specialized structures. Thus, the cost of holding his physical gold will reduce the efficiency of his investment.

As for keeping his trackers or certificates, you will need to pay a storage fee to your broker.

As noted Veronica Baron, one of the founding partners Central SCPI (www.centraledesscpi.com), the first French digital savings network:

“We don’t know investors who invest 20% of their assets in gold. On the other hand, we know some of them who own 20% of their holdings in SCPI shares. Therefore, they prefer to contact us at 01.44.56.00.23 than calling your broker to invest in gold.

Why is it risky to invest in a rented apartment?

  • Because property rentals are increasingly regulated

Whether buying or selling, property rentals are increasingly regulated. The same is true for renting out his house or rented apartment. From 1uh From January 2023, G-rated homes consuming more than 450 kWh/m² per year will no longer be considered decent and should not be rented out. To be able to rent them again, the owners will have to do an expensive job.

  • ‘Cause rent debts are rising

Rising prices are driving up unpaid rents everywhere in France. This is logical and will increase inflation and create new troubles for landlords.

Why is investing in wine or art only for connoisseurs?

  • Because we don’t improvise like wine or art experts.

When investing in wine and making a mistake, you can always drink from its bottle. On the other hand, when you invest your money in art and make a mistake, you usually see your savings go up in smoke.

  • ‘Cause wine and art don’t make a profit

Just like gold, wine and art do not generate income. Thus, it is purely speculative investment. Wine is not easy to keep, and as for its works of art, they must be insured. Therefore, this entails additional costs.

Why is investing in SCPI stock considered the safest way to fight inflation?

  • Because SCPI returns pay dividends

The most effective SCPIs bring in about 6% of net income per year. This productivity is above the rate of inflation, so the SCPI of returns allows it to increase its purchasing power.

  • Because rent under SCPI with performance is indexed to inflation.

Rent indexation for inflation allows SCPI partners to keep their purchasing power from falling.

  • Since SCPI performance does not require any management restrictions

Since all management work is done by the management company that created the performance indexes, contributors are content to receive dividends every month or every quarter.

  • Because SCPI performance are pooled savings products.

Investing in SCPI performance gives you the opportunity to become a part owner of several hundred buildings for the largest SCPIs. Thus, the risk of non-payment is shared among all the buildings in SCPI’s real estate portfolio in which shares have been acquired.

  • Because profitable SCPI mainly invest in business real estate.

Business real estate includes offices, retail space, business premises, warehouses, health and education properties, not to mention tourism and hobby properties. The above assets are very difficult to buy alone, so investing in SCPI shares allows you to do so on good terms.

  • Because profitable SCPI invest in Europe

European SCPIs are among the best SCPIs. European SCPIs do provide global inflation hedge in every European country and encourage geographic diversification. From a tax point of view, their dividends are not subject to social security contributions at a rate of 17.2%.

As reminded Laurent Fagesmanager inside Central SCPI :

“By purchasing SCPI shares through our company, you will pay no more for them and receive free services. We have been distributing all SCPIs on the market for ten years and we know how to create customized SCPI portfolios for our clients. »

Inflation is raging, and the French no longer know how to contain its effects. The most astute invest in SCPI performance metrics, which return about 6% per year at best. Therefore, it is the best current anti-inflationary investment.

However, in order not to make a mistake in choosing SCPI, it is necessary to seek advice from specialists, for example, Central SKPI (01.44.56.00.23), the first SCPI comparator on the market.

Purchasing power is on everyone’s lips. Talking about it is good, but playing is better. Also, why not buy SCPI shares rather than keep your life insurance savings in Eurofunds, which averaged just 1.1% last year?

Warning

An 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, seek professional advice to ensure that this investment is in line with 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.