The SCPI appeal to a growing number of investors. The reasons for their success : they allow us to invest in the stone, are accessible and above all profitable.
In 2018, the net revenue on the units of REITS (real Estate Investment trusts) reached 5.11 billion euros in France. These funds were mainly invested on the SCPI conventional so-called “performance”, purchasing commercial real estate. Next, a small proportion of these savings has been placed in the SCPI “tax”, which manage a portfolio of real estate rental housing.
What is this-that an investment in REITS ?
The managers of REITS are reaping savings from individuals and then use this capital to build a real estate portfolio. By purchasing shares of REITS, you are therefore, indirectly, a heritage in stone. All without the hassles of rental management, since it is the manager of the REIT that assumes this task and you reverse, regular basis, a proportionate share of rents.
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For an individual, the interest of this investment is threefold : first, it allows a great diversification of heritage, since the REIT owns several properties. The tenant’s risk is shared and thus significantly lower than with a single investment. Then, the SCPI enable you to benefit from the expertise of a professional management, both on the choice of the real estate assets and tenants. Finally, they provide a regular income and, overall, quite stable in the time and above all profitability, which remains a very interesting. The average REIT yield reported 4,35% last year (compared to a 4.43% in 2017).
Practice >> check out the investment REITS in partnership with Corum
Several families of REITS
Basically, there are two major categories of REITS : the REITS of return, which represent more than 93% of the total capitalization, investing in professional real estate and the REITS tax, which does not hold that new or existing housing redeveloped.
A distinction more fine-grained, however, can be carried out, because the first category can be divided into four families :
the “SCPI offices, which invest exclusively in this type of property,the “SCPI shops”, that invest in small businesses to the building and the shopping centres,the REIT “diversified”, which mix several types of investissementet the “SCPI specialist”, who buy property in an economic sector in particular, for example, health (clinic, care center, nursing home,…).
the operation of The REIT tax is different, since their main purpose is to offer a tax benefit to the subscription.
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There are also different types of REITS défiscalisantes, each bearing the name of the device in which it invests (Scellier, deficit land, Pinel, Malraux…). Concretely, the managers of these REITS buy properties that meet the tax conditions, and then rent their park to individuals, in accordance with the conditions (ceilings of income, rents, minimum rental period,…). At the end of the device, they sell their stock and pay back their unitholders before being dissolved. Attention, this type of REITS is significantly less profitable than the first, even after tax advantage.
Practice >> check out the investment REITS in partnership with Corum
How to build assets of REITS ?
If you want to invest in REIT performance, panachez your investments between a number of categories : by mixing the different families (office, retail, diversified, and specialized) you will ensure the diversification of the widest possible.
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Good to know : in general, the SCPI office report a little more than those of businesses. But their performance may be reduced more quickly in the event of economic downturns.
Some REIT “diversified” have a strategy that is very opportunistic, and have above-average yields, with a risk a little stronger, while others are aimed at an optical stability of the portfolio and are thus a little less profitable but safer.
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Finally, the SCPI “specialized”, undergo a risk a little more important, because if the sector in which they invest is undergoing a major crisis, their value would drop, due to lack of diversification.
