Investing is the key to the security of your future, your loved ones and even your company. The choice always becomes difficult when you want to take action as the objective of an investment is not only to bring in additional value in the future but also to take into account the desired level of risk. Pay attention to the performance SCPI to better understand how to invest.
Some basics to know about SCPI
SCPI’s principle of return, (civil company of real estate investment), by its name, is easy to incorporate/understand because it includes/understands the terms investment and real estate. Investing in real estate is often considered a relevant investment. To make this investment, all generations combined are regularly used by the French. But what exactly is a display SCPI? It is, in a simple way, a collective investment managed by a management company that aims to invest under excellent conditions. It goes through a public call for savings and can be addressed to individuals and institutions. In other words, an investor buys as many units as he wants, without making a maximum investment, at a unit price set by the management company. The advantage of this type of investment is that the investor becomes a participant of SCPI from the very beginning.
How does this work?
With the money invested, the management company creates what is called a portfolio of real estate assets, which can be offices, shops, health establishments etc. and sometimes housing. That’s why they offer a wide variety of options. These goods are then rented out to companies (or individuals), whose rent is usually paid quarterly to SCPI’s partners in the form of income called dividends. It is always possible for the savers to sell their shares to recover their initial investment, according to the terms established by the management company. This is the reason why investing in SCPI performance provides a certain freedom and security for the investor if the uncertainty of life compels him to need this investment.
What is his interest? Its performance?
Yield SCPIs give regular returns to their partners. It should be remembered that SCPI has never given an average yield, delivery rate of less than 4% per annum to its credit. In 2020, during the health crisis, the SCPI posted an average delivery rate of 4.18%.
Yield One of the main advantages of SCPI is the dilution of risk. Buying SCPI shares means investing indirectly in many real estate properties, such as offices, shops, housing. If we compare this to renting out the property that we own, the difference is that if the tenant doesn’t pay you, you are in direct default of payment. It represents a shortcoming that often puts the owner in trouble. However, in case of investment in a performance SCPI, non-payment of one tenant may be compensated by rent paid by other tenants. With SCPI, investors clearly reduce the risk associated with investing.
Non-existent and accessible management
If the purchase of the property as an individual requires rental management, the purchase of performance SCPI shares removes all the time-consuming hassles from the participant. They are entirely borne by the management company. The investor collects the dividends associated with the rent, not forgetting that he must pay the relevant taxation.
This investment is accessible for all budgets. In the SCPI market, there are therefore products for all budgets, and therefore they are targeted at a wide range of investors. There are some SCPIs available in the market with an investment of EUR 200, which is within reach of (almost) everyone.
Diversify your assets, an obvious added value in times of uncertainty
By investing in SCPI, you can get regular returns while diversifying your assets. Actually, buying SCPI shares makes it possible to invest in multiple assets at once. So savers are less subject to market turmoil, as was the case when hotels closed during the period. It should be remembered that savers often choose a type of asset related to the stock market which saves them from being subjected to its ups and downs. So this part of their wealth is protected from the uncertainties of the listed financial markets, which is an added value in the event of an economic crisis.