most of The retail investors purchase shares of REITS performance, which offer a beautiful and cost-effectiveness. But this investment also exists in another form.
A side of the civil societies of investment in the high-yield real estate, investing in professional real estate (offices, walls, commercial, hotels, etc.) to find the maximum profit, there is another category of SCPI say “tax”. Main advantage : they allow the tax savings calculated on a portion of the amount of the price of their units, but if they are also subject to constraints. Mode of employment.
simple operation
The SCPI “tax” are different forms depending on the assets in which they invest. Only common point : they are buying up residential real estate (former renovation or new construction, or delivered) and lease it to individuals meeting the constraints set by tax systems.
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Attention, contrary to the REIT conventional REIT tax have a limited life span. At the end of the tax period of eight to fifteen years in general, they sell their real estate, pay off all their unitholders and are dissolved.
For individuals, they have many advantages : the ticket entries is much less than an investment in direct because it is possible to invest just a few thousand euros to buy shares. Then, the REIT manages the rental housing sector, there is therefore no concern of management.
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But they also present drawbacks : the reduction or deduction of tax only for the benefit of the first purchaser. The shares of REITS tax are thus almost impossible to sell before the end of their retention period. On average, it is necessary to wait 15 years, until the liquidation of the estate, to recover the invested capital at the beginning. Finally, their performance is substantially lower than that of SCPI-classical, since the real estate housing display returns significantly lower than those of the real estate professional.
The SCPI Pinel
The SCPI Pinel offer a discount identical to that of an investment live. Namely 12, 18, or 21 percent reduction in income tax (according to SCPI) the price of the units, for a total amount of investment of up to 300 000€/year. The investment is diversified, because these REITS invest in multiple programs and different cities.
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that Is to say : unlike an investment in the live, the tax reduction is carried out at one time, the year of the subscription, and not spread out in time.
Reverse of the medal : the performance of this type of REITS is quite poor, since the rents are capped. He runs around 1.5% and 2% on gross (excluding tax advantage). Another black spot : the tax reduction is integrated in the overall ceilings of the niches tax of € 10 000.
The SCPI Malraux
The particular pay more, have rather an interest in purchasing shares of SCPI Malraux, to enjoy a tax reduction of upper. With this device, the REIT invests in real estate former in geographic areas where the heritage is of high architectural quality, but not enough to be listed Monuments and in very poor condition. Then, it renovates in full for the goods purchased and then rented for at least nine years.
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The tax reduction offered by the device Malraux is 30% of the amount of work. As the renovations are very cumbersome, they are, in general, 60% of the total cost of the operation. The reduction of income tax total for an investor in shares of REITS Malraux therefore corresponds to 18% of the amount of the investment (60% x 30%).
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The advantage is that the reduction does not fall within the overall ceilings of the niches tax of€ 10 000. In spite of all, pay attention, because off-tax savings, the profitability of these REITS fluctuates between 0.5 and 1.5% gross.
The SCPI deficit ‘ property
This last track is rather for taxpayers whose side marginal taxation is very high, or those that affect a lot of land revenue (from existing assets). The objective of a REIT deficit foncier is to buy old properties in very poor condition and renovate it. On average with this type of transaction, the renovations weigh for 50% of the total cost of the operation. As all the works are deductible, the first years, a deficit of the land is cleared. The latter is reportable on the income of land, which allows purchasers of shares of REITS to reduce their taxable base and their taxes. If the amount of their land revenue is inadequate, the deficiency of the land is chargeable on the total income, within the limit of 10 700€/year.
Read our complete file
Device Pinel
real Estate : taxation and premiums, four changes to take into account real estate Investment in Pinel: the benefits of et the disadvantages of PTZ and Pinel : what awaits the purchasers in 2018
namely, this tax benefit does not enter into the ceiling of tax rebates of€ 10 000. It does, however, retain the units between ten and fifteen years from the end of the period of marketing of the SCPI, and two to three more years to recover all the capital, once the real estate is sold. Attention, on average, the profitability of these REITS fluctuates between 0.5 and 2% gross, before tax benefit.