The SCPI (Sociétés Civiles de Placements in real Estate) have a lot of strengths. Their operation, however, is not always well known. Decryption.

The SCPI (Sociétés civiles de placement in real estate) are collective investments which enable individuals to invest, indirectly, in real estate professional (walls of shops, offices, hotels…). Simple to access and cost-effective, it attracting more and more investors. But they suffer also a lot of misconceptions. Review detail.

misconception # 1 : the capital invested in the REIT is guaranteed

FALSE . The REITS to invest in the stone and the value of their real estate can go down as well as up. This may be the case if the market picks up or if the property loses value (due to lack of maintenance sufficient for example). In SCPI, your capital is not guaranteed to be 100%, not more than with another real estate investment that can save losses on the resale.

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misconception # 2 : the REITS are investments that are very risky

FALSE . The REITS are subject to the risk linked to the holding of rental property. But as their fleet is diverse, it is less as shared on several goods. The REITS are significantly less risky that a traditional way of investing in the stone.

Practice >> Learn more about investing in REITS in partnership with Corum

This bias comes from the fact that they are sometimes confused with the FCPI (Mutual Funds in Innovation), investing in capital for small start-up companies and are, themselves, very risky.

misconception # 3 : REIT is an investment dedicated to the short-term

FALSE. The purchase of units is conceived for the long term, a minimum of more than eight years. As the fees are high for the subscription (from 8% to 12%), invest over a long period of time can dampen. The SCPI return to distribute additional income regular, which makes it an ideal investment for retirement.

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misconception # 4 : you can’t buy REITS without intake

FALSE. The shares of REITS can be purchased, cash or credit. Provided we find a bank that lends you the funds, so you can build wealth without having the slightest contribution. Buying on credit also allows you to minimise your taxation, thanks to the deductibility of loan interest of property income.

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misconception # 5 : the REITS have a tax advantage

TRUE AND FALSE. There are two categories of REITS, the most well-known, so-called “performance”, investing in professional real estate no benefit from any tax advantage. The other, called “tax”, are backed by tax systems (Malraux, deficit land, Pinel,…) and invest in residential real estate. They meet the conditions of each device (duration of the investment period, ceiling rents, the choice of the tenant…) and have the benefit of their unitholders in the same tax advantage as if they were investing directly. But be careful, their performance is almost two times lower than that of other REITS.

Practice >> Learn more about investing in REITS in partnership with Corum

misconception # 6 : all of the SCPI can be housed in a life insurance policy

FALSE. Only those who have entered into an agreement with an insurer, are accessible via the contract of such insurer. If you choose this mode of investment, the choice of REITS is therefore much more limited and the costs higher, since you support those of the contract in addition to those of the REIT. On the other hand, the liquidity is greater and you take advantage of tax a very attractive life insurance policy.

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misconception # 7 : the REIT does not invest in the paris region

FALSE. If this was the case for the majority of REITS in the 1990s, this is no longer true today. Most REITS distribute their capital by choosing properties on the market in île-de-france, in the large regional cities or abroad. The only specialization that exists regarding the typology of assets : some REITS invest only in the offices,others exclusively in the shops, the other buy two with in addition to other assets (hotels, car park, health centre…).