SCPI to credit: a good plan?

Benefiting from excellent performance, stone paper attracts more and more French people. With relatively low interest rates, should you take the opportunity to buy SCPI shares on credit?

Civil real estate investment companies (SCPI) represent an attractive investment, making it easy to take a place in the rental investment. The entrance ticket is accessible: around Minimum initial contribution of 200 euros, Depending on the case. With an average yield above 4% in 2021, SCPIs recorded record inflows for the 1st quarter, with more than 81 billion euros.

While many savers buy their units in cash, almost 30% of the collection of SCPIs would be done via the subscription of a loan. “The possibility of buying SCPI shares on credit has long been reserved for the wealthiest customers. Today, the practice is becoming more democratic,” notes Stefan de Quelen, Managing Director of Meilleurtaux Placement with MoneyVox.

Real estate loan or consumer loan?

Is it a good idea to buy SCPI shares on credit? According to Stefan de Quelen, the answer is yes. “If the operation is well implemented, the SCPI rents repay a large part of the loan, which allows the investor to build capital effortlessly “.

Also, to finance your investment in SCPI performance 2 options are available to you : mortgage or consumer credit. If the first solution allows you to borrow larger amounts at lower rates, you can also deduct the interest on the loan from your taxable income. Attention, on the other hand, mortgage rates are a little higher when it comes to financing SCPI shares. On the other hand, a consumer credit has the advantage of being easier to obtain, less restrictive administratively speaking and immediately available.

The disadvantages of buying shares on credit

“First obstacle: finding financing. As a reflex, the rescuers often return to their bank. But very quickly, they become disillusioned. In question, the commercial practices of the banks, who want to grant loans… Provided that buy shares in their home SCPI. Problem: these products are rarely the best performers,” says MoneyVox.

In this context, finding financing “to invest in paper stone is often difficult without the help of a professional”, says Stefan de Quelen.

Also, buy SCPI shares on credit, it is not uncommon for lending institutions to use them as collateral. It’s about ” pledge” of shares. This is a significant security for the credit organization, because in case of a repayment default, it has the right to take your actions to protect its losses.

commitment, involves costs. They are usually on average between 300 to 500 euros per unit depending on the establishment. The purchase of SCPI shares remains an uninsured investment, as it presents a risk of loss of capital and liquidity. Thus, it is better to be careful if you plan to take a loan over 10, 15 or 20 years, because if SCPI returns decrease, you risk having to produce a greater savings effort than expected.

Before investing, it is important to consult a wealth management professional by contacting a Placement Meilleurtaux advisor.

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