The two savings products have fought for a very long time. On the one hand, life insurance, which has been out of love with investors for several years, and on the other hand, SCPIs, which are attracting more and more savers and which have become the preferred investment of the French.
Both appeal to a large number of savers, but which one is more advantageous for the year 2018 to come?
To decide between them, we went to meet Mr. Lionel Benhamou, founding partner of La Centrale des SCPI and real expert in real estate savings.
Everyone knows how it works life insurance in euro funds, but only few savers know digital stone, which has been around for more than 40 years and which represents all the advantages of rental property without being constrained.
Could you explain to yourself what a SCPI?
By investing in SCPI, savers become owners of real estate assets weighing several million or even billions of euros and receive net rent in proportion to their investment. The management company takes care of everything: acquisition, rental, management and valuation - savers don't have to worry about it.
The return on an investment in SCPI is on average of 4.63% net in 2016, but can go for some SCPIs up to more than 6% net. Unlike life insurance in euro funds which struggles to distribute 2%, SCPIs allow investors to build up additional income recurrent over the long term.
And concretely, how does a SCPI work?
With funds collected from individuals, the SCPI buys buildings in different geographic areas. The objective of a SCPI is to seize the best opportunities in the real estate market in order to distribute a significant and stable return to the partners.
Concretely, management companies buy and manage buildings often leased to large companies. Savers then receive a net rent, without any management concerns. It's every homeowner's dream, isn't it?
Which medium to choose for your savings in 2018: life insurance or SCPI?
With an increasingly low return and increasingly restrictive regulatory measures, the interest of savers in life insurance in euro funds is in decline. These include the Sapin 2 law which allows insurers to block liquidity on this medium for 6 months, in order to avoid the massive withdrawal of savers, in the event of a financial crisis. Another recent measure, the flat tax of 30% which penalizes savers with more than € 150,000 on their contracts.
In view of the events, the collection of life insurance in euro funds is down - no surprise In fact, since January, net inflows have stood at € 5.5 billion against € 15.5 billion over the first nine months of 2016. On the contrary, that of the SCPI is on the rise perpetual for several years and has reached a historic level of more than € 43 billion, which proves its attractiveness in the eyes of savers.
The choice is obvious: with its return of up to 3 times life insurance in euro funds, the SCPI investment is an attractive product on the market, with a very consistent risk / return ratio. In addition, the SCPI is accessible to all saver profiles and all budgets. Who says real estate is only for wealthy people!
What are the SCPIs that you absolutely have to keep in mind to boost your savings in 2018?
French taxation is becoming increasingly heavy. With the increase in social security contributions in 1er January 2018 and the implementation of the Tax on Real Estate Wealth, the investment in shares of European or international SCPI allows you to take advantage of the opportunities offered by foreign real estate markets, but also a more advantageous tax system.
Land income from foreign sources is not subject to social security contributions.
In the range of European SCPIs, we have a wide choice. Some SCPIs focus on the German market, some open to all European countries and others offer a mix between France and abroad.
the SCPI Novapierre Germany, as its name suggests, is one of those invested solely in Europe's largest economy. The strong and stable German market seems to be attracting many investors. It is therefore not surprising that the capitalization of SCPI Novapierre Germany amounted to € 245 million as of September 30, 2017. Among its tenants, we find German food retailers, such as Netto and Lidl.
Taking advantage of the potential of European real estate markets, without excluding France and its capital - this is the strategy of the SCPI LF Europimmo and it pays off. It enabled SCPI LF Europimmo to build a solid vessel weighing € 340.8 million as of September 30, 2017. The last investment made? The acquisition of a building of over 30,000m2 in Stuttgart, Germany, fully leased to the famous car brand, Porsche.
the SCPI Corum It is also pursuing an opportunistic strategy and seizing all the great opportunities offered by European countries. Germany, Italy, the Netherlands, Spain - these are not the destinations for your next trip to Europe, but the countries where SCPI Corum has made its multiple investments.
There are also international SCPI 100%, such as the SCPI Corum XL, which are not limited to the European market and plan to invest beyond the euro area. A first in the world of SCPI, but it appeals to investors. After only 9 months, it is in its second acquisition and its assets already amount to 18 million euros as of September 30, 2017! What to further boost the collection on this promising SCPI.
Where can we get SCPIs?
Like real estate loan or insurance brokers, there are now experts who support you throughout your SCPI investment project. The Centrale des SCPI is the first online platform dedicated entirely to this real estate savings product: www.centraledesscpi.com. But it is also a magnificent store on several floors in the historic center of Paris, where clients can meet wealth advisers, talk to them and make their real estate projects a reality. With or without an appointment, a single address for your real estate projects: 15 rue Saint Roch in 1er district of Paris.
There is no debate, SCPIs are the winners of this 2018 savings duel. In addition to a favorable net return, SCPIs make everyone's dream of becoming a home owner come true.