In recent years, the SCPI has been increasingly successful with investors looking for a profitable investment. What are the origins of this placement? What are the reasons for its success? Focus!
The history of Sociétés Civils de Placement Immobilier began in the 1960s. At that time, savers thought that an investment in professional real estate would be quite beneficial. However, they will face the problem of the initial outlay which turns out to be much more substantial for an office building or commercial premises. It is with the aim of solving this problem that the SCPI was born. You can click on the Homunity website to learn more.
At the beginning, the goal was to realize a public saving with several to get what one cannot buy alone. To do this, one of the very first “Civil Property Investment Companies” was set up in 1964. This is also the main factor that led to the advent of Civil Real Estate Investment Companies. It was not until 1970 that these companies became official when the law defining the regulatory framework for stone-paper was established.
Over time, the SCPI will also take the name of “Sicav de l’immobilier”. In 1993, the adoption of a certain law made the possibilities of resale of buildings much more complex. This intensified the real estate crisis from 1992 to 1997. Consequently, the performance of the Sociétés Civiles de Placement Immobilier fell considerably. But today, this placement is booming.
The advantage of real estate investment companies is today undeniable. Indeed, this method of investment has many advantages for investors. There are many aspects that explain the success of the SCPI.
Unlike a direct real estate investment, it is possible to invest in Civil Real Estate Investment Companies at a lower cost. Indeed, you will only need a few hundred euros to start your investment. You will thus be able to build up a real estate portfolio according to your means.
In 2018, investments in REITs returned 4.34% and 4.40% in 2019. These results may not be guaranteed, but they remain above several commonly requested savings products speak French. Therefore, the SCPI generates potential income on a regular basis in the form of dividends. The value of these dividends is determined by the TDVM which will be applied to each share.
In addition, it is the rental conditions of the buildings that determine the income that will be paid to you. This type of investment allows you to benefit from a certain insurance with regard to your income.
Civil real estate investment companies have a fairly large number of buildings. These are occupied by different tenants. As a result, the risks of non-payment and rental vacancies are pooled. The SCPI thus guarantees optimum security for your investment. Such security is almost impossible to provide for individuals who rent real estate directly.
Indeed, it should be noted that two-thirds of private landlords have only one rental property in their possession.
Professional real estate investment allows you to entrust the management of your property to a company. The latter is approved by the Autorité des Marchés Financiers (AMF). This is one of the many reasons that make the SCPI a safe and successful investment. For more information on the subject, visit this page.