There are many advantages to investing in SCPI shares, and this is due to the way this type of investment works and its characteristics. The real estate sector is a sector that has had its ups and downs, but which has always recovered. Thanks to SCPIs, there is even more chance of making more money with fairly reduced risks. Here are its benefits.
This is undoubtedly the first advantage that should appeal to investors. By its principle, it is a question of acquiring shares, but not an entire property. It is thus feasible to invest in SCPI even with a reduced participation if the budget does not allow to splurge. Vice versa, it is also possible to introduce even more capital than the price of a single good, because the number of shares is not limited to that. Most management companies also allow any individual and legal person to buy shares.
The second biggest advantage of SCPIs is in terms of yields. The fact that the real estate, the purchase of which is financed by the SCPIs, are of a commercial or professional nature clearly shows how profitable the investment can be. Indeed, on the market, these assets are the most profitable in terms of rents. SCPIs therefore provide easy access to this type of investment, which for years was a sector reserved for a certain elite. The “speculative bubble” phenomenon is also not present for these goods which are not the subject of overflowing speculation. Yields are then fairly stable.
SCPIs are placed under the management of specialized companies that have received approval from the Autorité des Marchés Financiers. Thus, it is through them that savers will place their funds. These companies will then reinvest them in the assets mentioned above and will ensure the filling and collection of rents as well as the redistribution of gains to investors. Investing in SCPI then means entrusting your money to competent people who will find the right veins to guarantee reasonable profits.
In the field of real estate, it is rare for the Autorité des marchés financiers to poke its nose into business. But here, SCPIs are constantly monitored to ensure their quality and stability.
What could be better than not having to carry the heavy weight on your own in the event of a failed real estate investment? Indeed, SCPIs make it possible to pool risks. For conventional landlords, a bad rent payer can very quickly become a problem, and the financial consequences can be devastating. But in the case of SCPIs, their real estate assets amount to several billion euros and the payment of dividends will not depend on a single tenant who leaves. The impact of this kind of problem will not even be felt. In addition, the best management companies often guarantee an occupancy rate of over 90%. A tenant who leaves will be quickly replaced.
In short, investing in SCPI then has many advantages, starting with accessibility, through security and risk minimization. We must also not forget that the yields are very attractive.