Prepare for the future with SCPI, the property investment savings solution
SCPI shares are turnkey investments which generate returns and potential regular revenues in return for a commission.
Consequently, an SCPI is an excellent way to generate additional quarterly potential revenues whilst generating capital gains over the long-term without being exposed to the risks associated with the volatility of the financial markets.
SCPI: an obligation free property placement suitable for a broad public
SCPI collect funds from private clients to invest them in leased out property assets. SCPI can be accessed with a much smaller starting capital than required for direct property investments (a few hundred euro is enough to buy shares), buying SCPI shares is a way to become a co-owner, alongside other investors, in assets that are leased out to professional tenants (offices, retail units, hotels, clinics, retirement homes…) or private tenants (residential). And all of this without owner obligations: in return for a commission, the whole of the leasing procedures, property management and maintenance of the assets is covered in full by an AMF (Autorités des Marchés Financiers - Financial Markets Regulator) authorised asset management company.
SCPI can be used to diversify your investments across the various property markets, which is not always easy for private customers to do. In return for this the participant accepts the risk of losing their capital. And as an additional advantage, the leasing risks are shared since SCPI invest in different types of property, widely distributed geographically (France and Euro Zone) and leased out to tenants with a wide variety of different profiles.
SCPI: a regular potential return
SCPI redistribute the rent payments that they receive to their associates on a regular basis (usually quarterly, minus their commission) in the form of dividends. They can also, after holding on to them for a few years, sell certain assets and generate potential capital gains which are also redistributed to the associates.
Evidently SCPI are not a guaranteed investment. The dividends paid out to shareholders and the values of the assets held may rise or fall in value depending on the situation. However, as with any property investment, SCPI are a long-term placement which should be committed to for a period of 10 to 15 years. This is generally enough to absorb any short-term potential value losses. According to the IEIF (French Property Investment Institute), the average SCPI share price has increased by almost 12%; meaning that in addition to quarterly revenues, the initial capital investments have indeed increased in value for investors.
Prepare for your future with SCPI
Shares in return generating SCPI represent a turnkey investment that will generate potential regular revenues in return for a commission. They are long-term savings plans that are ideal for preparing for your twilight years, and less restrictive than dedicated pension investments like PER, Perp or Madelin contracts. When you stop working, the potential dividends paid out will provide you with additional revenues over and above your pension.
SCPI are also a good way for investors to diversify their placements and thus spread their risks. They can be accessed on credit as a means to build up an asset holding in the long-term with a savings investment adapted to your situation. After a few years you can generate enough capital gains to finance your long-term projects. And finally, they can be used to prepare for your children’s futures.
Risk of buying SCPI units on credit:
A loan commits you and must be repaid. Check your ability to repay before committing yourself. The subscriber should not rely exclusively on the income from the SCPI to meet his or her repayment obligations. If the income from units purchased on credit by the partner is not sufficient to repay the loan, or if the price falls when the units are sold, the subscriber will have to pay the difference.
Investing in SCPI units involves risks, particularly of capital loss, income is not guaranteed, and past performance is no guarantee of future performance.
Before subscribing to any SCPI units, the investor must be given the prospectus, articles of association, DIC, subscription form, the latest information bulletin and the latest annual report. These documents are available from the management company.