Do you know the "paper stone"? Perhaps not, like 60% of the French, according to the last study that Kantar publishes this Tuesday for BNP Paribas Real Estate, the property management company of the banking group. But once informed about this placement, 31% of them say they are ready to take the plunge. So why not you? Also known as the `` Société Civique de Placement Immobilier '' (SCPI) for yield, this investment has many advantages in this period of falling rates of life insurance contracts in euro funds (1.4% expected in 2019). Consecrated by the law of December 31, 1970, the SCPIs allow you to benefit from the rental investment returns without worrying about the management of the lease and the extras. And it is no coincidence that their collection reached a record level of 8.9 billion euros in 2019, according to the French Association of Real Estate Investment Companies (Aspim).
What is an SCPI?
It is a regulated company, supervised by the Autorité des Marchés Financiers (AMF), whose object is to acquire and manage a residential or commercial building stock (collection of rents, selection, purchase, resale, management of leases , works, etc.) and to pay rents to investors in proportion to their shares in the SCPI. The unit price varies depending on the fund but may be low. BNP Paribas Real Estate has just launched a new online offer where the share is sold for € 203.
Each investor, also called a "partner" is entitled to rents, most often quarterly, and recovers his shares when he leaves. Please note, the capital invested is never guaranteed, which means that the valuation of the units invested follows the development of the real estate market, upwards (as at the moment) or downwards. In 2019, the average return on SCPIs was 4.4% net (4.34% in 2018) before taxes and social security contributions. In 2018, there were 177 SCPIs in France for an outstanding amount of 55 billion euros.
Who is she talking to ?
To any investor who does not necessarily have the means to become an owner but wishes to invest in stone without worrying about the management of a property. "Instead of buying an apartment or a house and owning thousandths, the investor acquires shares in several buildings which the management company takes care of renting, managing and maintaining", summarizes Fabrice Violot, commercial director of the BNP Paribas property management company. The SCPI allows you to obtain additional income or prepare for retirement.
Units can be bought for cash or on credit and can be resold at any time. However, it is still recommended to invest at least € 20,000 for eight to ten years to recoup your investment, taking into account the costs.
How much does it cost ?
Buying units involves two types of fees: entry fees and management fees. Entrance fees vary on average between 8% and 10% of the amount invested. They remunerate the management company, the marketing network and the selection of the property. Contrary to popular belief, these fees have nothing to do with paying the notary fees associated with your purchase. And unlike its name, this amount is generally taken at the time of your exit, when your units are sold. "This allows your savings to work in full during the holding period of your shares, which is not the case with a purchase where the fees of notaries are due immediately", underlines Karl Toussaint du Wast, co-founder of the Netinvestment platform.
You will also have to pay management fees (operation of the building, its maintenance, its general meetings and annual audits), of approximately 13%, automatically deducted from your income. It is to amortize these costs that professionals advise to keep SCPI shares for at least eight years.
What is the taxation?
Since January 2018, SCPIs are subject to the single flat-rate levy (PFU) at 12.8% tax and 17.2% social security contributions. As for income, they are subject to the income tax scales as for any property investment. But if your property income is less than € 15,000 per year, you can opt for the more advantageous micro-land regime, which allows you to benefit from a 30% reduction before taxation.