Understand the SCPI and why invest

First of all, let’s define what an SCPI is: it is the acronym for Société Civile de Placement Immobilier. Concretely, it is a company that invests in real estate, while dividing the investment through multiple investors, of which you could be part (it is not reserved for specific people). For example, if a property is purchased for €200,000, then there may be 1,000 shares at €200 each. As an investor, you could buy one of these shares for a price of €200, and hold one thousandth of the property.

Where it becomes interesting for the investor is that he will receive dividends on a regular basis (every month or quarter depending on the SCPI) which will be added to the capital. This payment is the equivalent of the rent received by the landlord. Of course, the dividend received will be based on the number of shares you have purchased in the investment. Finally, all you have to do is fill out your tax form each year, adding the amounts you have received as an investor.

The first thing we think about when making an investment, whatever it is, is of course the return. For a real estate investment in SCPIs, you can start on an average basis between 4 and 5%. However, some SCPIs can reach 6%! This is all the more interesting since some more standard real estate investments do not bring the investor as much return… Nevertheless, we cannot say that this is the most interesting advantage…

Indeed, what most attracts investors to an SCPI is that it is an entirely passive income. While it is necessary to take care of your property as a landlord, this is not the case in an SCPI. Indeed, the company takes care of all aspects: finding a tenant, managing the works, drafting the rental lease or even taxation (among others). Be that as it may, if you don’t like dealing with these aspects, but still want to invest in rental property, the SCPI is the best solution.

Finally, and this will be the last aspect discussed: SCPIs are companies that invest in many areas. For example, you could very well put part of your savings in a property for housing rentals and another in health. Other areas are also offered: shops, offices, sports… In short, if you believe in one type of investment more than another, you can choose it. As you will have understood, investing in an SCPI is perhaps the simplest investment that exists: you invest your money and the company takes care of all the real estate management aspects.