The SCPI (Société Civile de Placement Immobilier), also known as a "pierre-papier", is a simple solution that can allow you to invest in offices or shops that are difficult for an individual to access directly.
Real estate remains a safe haven for many French people. It allows you to protect your wealth and, why not, to grow it while diversifying your assets. Buying shares in SCPIs allows you to invest your money in rental property without having to suffer the constraints of management. Although this type of investment is not without risk, it offers excellent returns (between 4 and 5% on average) and is based on a diversified investment strategy that significantly reduces the risk of rental vacancies and non-payment. Our real estate agents can help you carry out this type of operation.
If you wish to invest in real estate, the financing of SCPI units is a key step... which will depend on your financial situation and your objectives. Whatever your situation, you can find a suitable method of financing to buy SCPI units.
There are four methods of financing your SCPI units, each with its own particularities:
- Cash financing
- Credit financing
- Life insurance
There is no one method that is more advantageous than another. Everything will depend on your personal and financial situation, which we will be able to study during a meeting at the agency.
Cash financing of SCPI units is simply a direct purchase. If you have your own funds to invest, for example, from your savings, you can approach several people to acquire SCPI units, but our agents are specialised in this type of investment.
Cash financing of SCPI units is preferable if you have little or no tax liability. It is a good first step to build up your rental property assets by calibrating your investment to your means and choosing the SCPI that suits you.
You can also acquire SCPI units on credit. The advantage of this is that it gives you leverage to invest, especially if you have no or insufficient savings to invest. In this way, the rental income generated by the purchase of your units will repay part of the monthly loan payments. In addition, deducting the interest on the loan from your property income can also enable you to optimise your tax situation.
An SCPI mortgage is similar to a conventional mortgage. It usually takes the form of an amortising loan repayable each month. For sums below €75,000, it is possible to use a consumer loan, but the interest will be higher. If you are paying ISF, you can opt for a bullet loan, which will allow you to pay only the interest on the sum borrowed during the term of the SCPI loan, and to repay the sum once the loan is over.
To apply for a bank loan in our branches.
Be careful, however, as banks tend (and this is logical) to favour their financial products. Furthermore, they will require a security interest excluding a mortgage and will favour a guarantee or housing deposit for investors who are already homeowners.
The acquisition of SCPI units is a profitable operation over the long term (10 to 20 years). It can provide :
- a dynamic return depending on the SCPI; - a tax advantage thanks to possible deductions of loan interest; - a leverage effect thanks to the rents received.
Using a life insurance policy to finance your SCPI units will be done in cash.
Your contract will be managed by the insurer, who buys envelopes of SCPIs from management companies to make them available to you.
Fees linked to your contract will therefore be applied to the rents received. Moreover, you will only have access to a limited number of SCPIs depending on the insurer's portfolio. In reality, finding financing for SCPI units via life insurance is still quite rare and will inevitably be limited in terms of choice.
Buying SCPI units in dismemberment can be done in cash or on credit by separating the usufruct and bare ownership from the full ownership.
Depending on the type of dismemberment (life or temporary) the objectives will be different.
You may wish to :
- invest your cash by buying your shares at a lower price while optimising your taxation
- save on wealth tax
- passing on an estate without inheritance costs
Past performance is not a reliable indicator of future performance.
Buying shares in an SCPI is a long-term property investment. We recommend an investment period of more than 7 years.
As with any investment, there are risks. The capital invested and the income are not guaranteed: they are linked to changes in the property market and the correct payment of rent by tenants.
The liquidity and therefore the redemption of units is not guaranteed.
The information presented above does not constitute either a contractual element or investment advice.
In the case of a loan subscription, the SCPI does not guarantee its return, and the dividends received from the units may not be sufficient to repay the loan; the partner will have to pay the difference.
The tax treatment depends on the individual situation of each shareholder and may be modified at a later date.
Make an appointment now with your agent: Your assets deserve our expertise!