Where to invest your savings? Everyone always asks this question, and with secure investments that pay less and less, the answer is all the more difficult. If the Livret A and life insurance no longer know their success of yesteryear, many investments exist to help you operate according to the risk margin that you can afford. In addition, as in 2019, the watchword of investment in 2020 will still be diversification, which will leave you enough freedom to define your investment horizon.
With 4.3 billion euros net collected in the first half of 2019, real estate investment trusts (SCPIs) are on the rise. These companies allow you to invest in real estate indirectly with a few hundred euros. This type of investment has the advantage of offering an attractive return (4.35% gross in 2018) that can be achieved at moderate risk. The success of SCPIs is based in particular on the solidity of real estate assets, block yield and rental risks and pooled costs.
Be careful though, not all SCPIs have the same qualities. It is therefore necessary to choose your SCPI carefully according to many criteria, such as the reputation and the seniority of the structure which manages the company, as well as the characteristics of the property held. The same goes for the investment strategy which turns out to be different from one structure to another. While some SCPIs diversify the types of assets throughout France, others focus on a particular geographic sector.
If you want to take more risk to earn more, life insurance can be a lucrative investment. Today, life insurance can be modulated thanks to the support of multiple supports and types of management.
In addition, the advantageous tax framework of this multi-support investment is one of the advantages against lower yields. Be careful, here again, you have to take a little risk because if you want to invest 100,000 euros, for example, this sum of money will constitute financial assets which will be subject to the vagaries of the fall in the market.
It is well known that rental investment is one of the favorite investments of the French, especially those who wish to build up additional income in preparation for their retirement. Admittedly, real estate prices continue to rise, but very low interest rates encourage investors to acquire rental properties.
In addition, rental real estate is flexible enough to accept any type of property, as long as you plan to rent it out. Added to this are the Pinel (good new) and Denormandie (good old) laws offering a very advantageous tax framework, allowing a tax reduction of up to 21% of the purchase price. However, among the rules imposed, it will be necessary to rent the property for 6 to 12 years. In addition, certain criteria are decisive in order to benefit from the relaxed tax framework: