Discover relevant advice for investing in SCPI

Among the many types of real estate investments that exist, there is the investment in SCPI (Société Civile de Placement Immobilier). Very advantageous on certain points and accessible to the greatest number, the investment in SCPI requires having certain knowledge of the real estate market, in particular, before launching. Discover some tips to succeed in investing your money in SCPI!

What is SCPI?

The SCPI is an indirect real estate investment where the investor buys shares in a company that owns many real estate properties. This allows for risk diversification, unlike buying a single property. The management company takes care of managing the properties and regularly pays part of the rental income to the owners of the shares.

As an investor in a SCPI, the amount required to invest is much lower than in traditional real estate. SCPIs offer rates of return of around 4% to 5% and allow you to choose the geographical or activity sector of the properties. They manage all aspects of real estate management, leaving the investor without any worries. It is also possible to buy SCPI shares in dismemberment as part of a transfer of assets.

The importance of simulating your SCPI income before getting started

First of all, it is recommended to carry out a SCPI investment simulation using an online simulator. This will allow you to obtain an estimate of your potential profits in the short, medium and long term. Before investing in an SCPI, it is wiser for you to know if this type of investment suits you and if it will be profitable. This is why the SCPI income simulation is rather interesting to help you make the right decisions.

Fully understand the advantages of investing in SCPI

Another relevant tip: have a good understanding of what SCPI investment is and its advantages. Concretely, this type of investment consists of buying shares in real estate in order to obtain returns. The particularity of this investment is that it is accessible to everyone (individuals, companies, associations, foundations, etc.) with a low initial investment. 

In fact, you have to count on approximately at least 500 euros to buy a share. This is why investing in SCPI attracts so many new investors who want to move away from the classic real estate investment model which can be restrictive and full of obstacles.

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Determine your performance goals

Finally, the last piece of advice to take into account concerns your goals. Before choosing this real estate investment, you must ask yourself why you are doing it and what you expect from it. 

Some people choose SCPI to generate regular additional income, while others do it to build up more or less significant assets. But it is also possible to choose SCPI investment to benefit from its attractive tax system. 

Whatever the reason that pushes you to opt for this investment rather than another, you absolutely must define your objectives in advance. This is the best way to know if the SCPI is right for you or not!

Investing in SCPI is relatively advantageous compared to other types of investments. However, it is not necessarily suitable for everyone. Thanks to the advice given throughout this article, you have all the keys in hand to make the best decisions and succeed in your investment. So start, as a first step, by simulating your future income in SCPI!