Why invest in SCPI on credit before rates go up?

scpi borrow rate

In mid-2022, interest rates are still historically low, but they are rising faster and faster. It’s not too late to take advantage of this and buy SCPI stock. With yields as high as 6% for top SCPIs and delegated rental management, it’s no wonder more and more savers are taking the plunge. Together with La Centrale des SCPI, we will find out what are the advantages of buying SCPI on credit and how to get the best financing conditions.

Why prioritize buying SCPI before rates go up?

To take advantage of the still very low rates, it seems wise to invest in rental property on credit. This can be done in several forms: buying a rented apartment, running a tax exemption operation, or buying SCPI shares. Real estate investment still stands out: SCPI’s performance.

Interest in SCPI can be explained by several reasons:

All management is fully delegated management companies supervised by the financial markets authority. The choice of tenants, management, any work, as a member of the SCPI share, you do not care about anything!

No long weeks or long months of searching before finding an apartment that suits you. A find when you still want to take advantage of low rates. There are no visits to a notary either, everything is done 100% online on sites such as www.centraledesscpi.com.

SCPI is not subject to rental restrictions. While the profitability of the main French cities is declining from year to year, the best RDIs can yield up to 6% net. For comparison, buying a rented apartment in Paris brings investors less than 3% gross.

Diversification is much more important when buying SCPI shares. A SCPI portfolio can span hundreds of properties and tenants, so the risk is spread far more than when buying an apartment with a single tenant. For example, Theo Darroman, manager at Central SKPI (01.44.56.00.23 – www.centraledesscpi.com)offers us an example of a composite portfolio for SCPI loan at a rate of 1.75% for 20 years.

SCPI

Distribution

Investment strategy

Activimmo

40%

SCPI logistics in France

Sofidi Europe Invest

thirty%

Diversified European SCPI

Pierval Health

thirty%

SCPI Health in France and Europe

Why buy SCPI shares on credit?

In addition to building a legacy or diversifying it, buying SCPI shares on credit allows you to benefit from a significant leverage effect. Indeed, the purchase is financed in part by rent paid by SCPI.

“The longer the SCPI loan term, the lower the monthly payments, and thus they are covered by the SCPI rent. This is when the leverage is at its maximum. At La Centrale des SCPI, we aim to offer SCPI funding for up to 25 years to our clients. It is because of these long-term loan offers that our SCPI Loan Line continues to call 01.44.56.00.23. » Lionel Benhamou, co-founder of La Centrale des SCPI, SCPI’s first online aggregator, tells us.

Furthermore, buy SCPI shares on credit allows you to limit the tax impact of your investments, since 100% of interest on loans, insurance and other administrative expenses are 100% deductible from income received.

The SCPI loan is the main asset for preparing for retirement and increasing your purchasing power. Implementation of the SCPI loan also allows for anticipation of the unexpected and its sequencing. Credit insurance provides reimbursement in lieu of investors or heirs and in the event of a health problem.

Invest in SCPI with a loan allows you to build a real estate portfolio by taking advantage of SCPI’s performance and investment reliability. The digitization of the processes of La Centrale des SCPI and the strengthening of its finance department opens up access to the real SCPI online encyclopedia and rapid tests for eligibility for funding. It only takes a few clicks to get an SCPI loan at www.centraledesscpi.com.

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 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.

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