Why invest in an SCPI through us?
Despite a context of generalized inflation, the Swiss real estate market is experiencing constant growth thanks to ever-increasing demand. Faced with this, supply is becoming scarce and investors are becoming more and more selective. Coupled with historically low mortgage rates, it is then the right time to start investing in Swiss rental property via various products. However, this choice is crucial and it is essential to find out beforehand about the advantages and risks of each solution, depending on your residence and country of origin. As such, if you are a French resident and wish to invest in property, an interesting option may be to invest in a French SCPI through us. Find out in this article why it makes sense to choose this investment product.
What is an SCPI?
As its name suggests, investing in a Société Civile de Placement Immobilier (SCPI), also called investing in paper real estate, consists of buying shares in an unlisted collective real estate investment trust. Via a real estate investment spread over several buildings which are then rented to different tenants, you can therefore build up savings despite a low initial investment. In addition to this first advantage, the SCPI has other advantageous points.
What are the advantages of investing in an SCPI?
There are many ways to invest in real estate. However, investing in an SCPI can prove to be a very beneficial choice because this investment product has 2 major advantages.
Build up savings with a small amount
The first advantage of investing in an SCPI is that it is a very accessible product. Indeed, it is possible to invest in buildings from low contributions (ranging from a few hundred to thousands of euros), thus opening the doors to many investors who could not invest individually in such properties. Via this investment, you then become the owner of a part of the real estate stock managed by the management company, in the absence of being the owner of a single property. Since these buildings are then rented to different tenants, this allows you to ensure regular returns and to diversify your income.
In addition, it is also possible to take out a loan to buy shares in this organization, in order to benefit ultimately with a leverage effect. This consists of borrowing via a low-cost mortgage mortgage rate, to be able to take advantage via an SCPI of a yield at a higher rate such as 4 or 5%. By following this scheme, you will be able to repay your loan thanks to the rents that you will gradually receive via your investment in SCPI and deduct certain financial costs such as all the interest linked to your loan.
Take advantage of a passive investment, for simplified management and controlled risk
The second major benefit of investing in SCPIs is the passive nature of this product. Indeed, as an investor, you are absolutely not involved in the management process (unlike active investing). A real estate management company takes care of this and is responsible for the associated constraints and risks. In this sense, it takes full responsibility for choosing the investment in which you will ultimately be investors. Thanks to this scheme, you then invest in a product with controlled and shared risk, a very significant aspect for investing more serenely. Although this passive management has a cost, these costs will be profitable over time thanks to this long-term investment.
In conclusion, if you want to diversify your sources of income and want to get into real estate investment, an SCPI can be a very wise choice. Nevertheless, like any investment product, it is essential to be aware of the various risks associated with the purchase of shares in an SCPI, even though this risk is under control. Don't wait any longer and ask us for advice!
Don't wait any longer, ask us for advice, you won't regret it! And if you still have doubts we invite you to use our our mortgage rate, as well as notice about our service.
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