Investing well is not easy. Regulated savings books and life insurance policies in euro funds no longer pay off for their holders because their returns are below inflation. Buying a rental apartment can be profitable, but real estate requires very strict standards and management.
In addition, are there passive investments that can enrich savers? The answer to this question is yes when investing in shares of Sociétés Civiles de Placement Immobilier or SCPI. So let’s see how.
What is passive investment?
Unlike active investments, in which the investor gets involved and manages his own wealth by deciding what assets it will consist of, passive investments allow the investor to receive income without any intervention on his part.
The asset is then managed by a third party. This is especially true in real estate, as asset management can quickly turn into an investor’s nightmare. Between energy repair commitments, homeownership meetings, tenants, sometimes it’s hard to manage, there aren’t enough nasty surprises, and management is time consuming.
Veronica Baronone of the founding partners Central SCPI (www.centraledesscpi.com), the first French digital savings network, mentions that ” not to waste your time managing tenants, clients who call us on 01.44.56.00.23 decided to buy high performance SCPIs to increase both their purchasing power and their assets. Thus, these investors win doubly. »
Why SCPI is fully consistent with the concept of passive investing?
Investing your money in real estate brings more than livret A or life insurance contracts in euro funds, but it takes time and energy. Investors in SCPI shares prefer to devote their time and energy to other activities. After all, all the work is done by the management company that created and manages the acquired SKPI.
The management company determines the choice of assets placed in the portfolio, manages the assets of the building and regulates relations with tenants. It also maintains SCPI’s accounting records and sends annual tax returns to shareholders. For its part, the partner is content to receive its dividend monthly or quarterly, depending on the conditions of each SCPI performance.
Do SCPIs pay off despite their passive investment nature?
The most productive SCPI yield up to 6% per year. This 6% net of all costs represents a high level of efficiency compared to life insurance policies in euro funds.
What’s more, the cost of high performance SCPI units is steadily rising in light of rising real estate prices. Thus, the prices of all types of real estate (offices, retail premises, warehouses, commercial premises, health and education-related properties, leisure and hotel properties, residential properties, etc.) are overestimated over time.
What SCPI metrics should I invest in to earn passive income?
In order not to put all your eggs in one basket, you will have to mix several performance SCPIs, at least three, to create a passive but profitable portfolio. Therefore, it is reasonable to mix European RPIs with French RPIs in order to diversify the location of buildings (France, Eurozone, rest of the continent).
Apart from the European SCPI, which are among the best, it is interesting to position ourselves in the logistics SCPI, health care and diversified SCPI. Don’t think that investing in SCPI requires large sums, as a few thousand euros are enough to create a diversified and complementary SCPI portfolio.
As with all real estate assets, it is a good idea to strengthen your SCPI portfolio by buying SCPI shares on credit to take advantage of the leverage effect and increase your real estate holdings faster.
Where to buy SCPI shares to create passive income?
As the choice of SCPI performance becomes more and more extensive, feel free to seek advice from the SCPI experts. Since the price of SCPI shares is the same regardless of the distribution channel, it would be a shame not to benefit from the experience of these SCPI specialists who are engaged only in this work.
Their independence, combined with the fact that they distribute every SCPI on the market, with the best SCPI credits in mind, speaks in their favour. Thus, the choice of OIR, made on their advice, will be a guarantee of good performance and, therefore, financial independence.
As noted Theo Darromanmanager inside Central SCPI :
” Passive income from SCPI is available to all contributors, small or large. It is enough to start in the investment SCPI to realize this. The main thing is that the car starts. Once launched, dividends will follow month after month or quarter after quarter. As SCPI trainers, we are best placed to help investors who will trust us. »
Investing money in passive investments has become a trend. The French really want to remove all managerial restrictions, which is understandable. However, investing your money in passive investments that will return less than inflation, such as Livret A or a life insurance policy in euro funds, does not make sense. This is why it is preferable to buy SCPI, a predominantly passive investment.
However, the help of specialists from the SCPI is needed, such as Central SCPI (01.44.56.00.23 / www.centraledesscpi.com), the first SCPI comparator on the market to ensure the success of your passive investment. To verify this, just contact them without obligation.
Getting rich and passive investing do not contradict each other, but complement each other. Invest your money at around 6% per year without any management restrictions as advised by the consultants Central SCPI this is what puts a smile on the faces of investors.
An investment in SCPI is not guaranteed either in terms of dividends received or in terms of capital preservation. SCPIs depend on fluctuations in real estate markets. Before making a decision to buy SCPI stock, consult with a professional to ensure that this investment fits your asset profile. Finally, as with any real estate investment, consider the fact that SCPIs are long term investments with a minimum holding period of eight years.