The keys to SCPI: increasing the value of your capital and receiving additional income
Investing in SCPI is a way to build up an estate by receiving regular additional income and increasing the value of your capital over time.
To learn all about investing in SCPI, listen to our podcast Keys to SCPI.
According to the Observatoire Français des Conjonctures Economiques, more than 75 billion euros were saved by the French between March 16 and July 11, 2020, during the periods of confinement and then de-confinement related to the Covid-19 pandemic. However, these savings are most often held in non-interest-bearing current accounts, or invested in passbook savings accounts with regulated rates that are not very attractive, ranging from 0.5% for the Livret A and DDS (Développement Durable et Solidaire) to 1.25% for the LEP (Livret d'Epargne Populaire).
With more attractive returns - 4.5% on average* - than regulated savings or life insurance, real estate investment trusts (SCPI) are a good way to redeploy savings and increase the value of your capital. Their principle is simple: SCPIs collect funds from investors and acquire a real estate portfolio that they manage and maintain on their behalf. The income generated by the rents is paid quarterly to the associates of the SCPI, in proportion to the number of units they hold.
An investment solution to be considered in the medium or long term - the recommended investment period is 10 years - the "pierre-papier" can also be taken out on credit**. In this case, the income will be used to repay the loan, and then to build up capital once it has been repaid.
Stéphanie Lacroix, Managing Director of Primonial REIM, a major player in real estate savings in France, tells us all about investing in SCPIs.
*Comme pour tout investissement, les performances passées ne sont pas indicatives des performances futures.
**Un crédit engage le souscripteur et doit être remboursé. Vérifiez vos capacités de remboursement avant de vous engager. Le souscripteur ne doit pas tenir compte exclusivement des revenus provenant de la SCPI, compte tenu de leur caractère aléatoire, pour faire face à ses obligations de remboursement.