SCPI to credit: our guide 2022

To buy SCPI (civil real estate investment company) shares, most investors use their available savings. However, at a time when lending rates are extremely low, some choose to buy SCPI on credit to take advantage of a leverage effect. What credit should you consider to diversify your assets and prepare for the future with SCPI? Why choose this solution? We’ll explain.

Investing in SCPI on credit: how it works

Let’s go back, first of all, to the beginning of the SCPI. Investing in SCPI consists of buying shares in a real estate investment company. This will invest on his part in real estate that he will manage. It collects the rents it pays to investors in proportion to the shares they have purchased. It is a very popular investment thanks to the delegated management and the lower entry fee than in the context of a direct real estate purchase.

While some investors want to grow their savings and get an attractive return by buying shares in the best SCPIs, others turn to SCPIs on credit.

To invest in SCPI in credit, it is very simple. Instead of using your available savings to buy SCPI shares, take out a loan like buying real estate.

This solution involves several steps:

  • Choose the best SCPIs of the market according to your investor profile and your investment objectives;
  • Subscribe to SCPI by ensuring that your contract includes a suspensive loan clause that ensures the purchase will not be made if your loan application is rejected;
  • If you have received an agreement from your bank, transfer the funds to the management company, the purchase of your SCPI shares is validated and you begin to repay your loan.

Depending on your financial situation, it is not always necessary to submit a personal contribution to purchase SCPI on credit. As with any conventional mortgage, the bank will study your personal and professional situation and your ability to repay before giving its approval.

Why buy SCPI on credit?

Buying performance SCPI allows you to diversify your real estate assets. Choose the SCPI on credit, make a real estate investment to benefit from a leverage effect. Today, the credit rate is very advantageous. If you are considering an investment that offers a higher return than the interest rate of your credit and lower than your savings vehicles, this solution is to be considered.

On the other hand, it allows you to invest immediately and start building your property, but also to collect rental income. Saving every month to invest in SCPI is especially long. That is why investing in SCPIs on credit allows you to buy shares without delay and not to take the risk of missing great opportunities.

Finally, this solution will put you in less debt as part of the monthly payments of your mortgage will be financed by the income of the property collected.

What type of credit to invest in SCPI?

How to buy SCPI on credit? Two types of credit are to be considered:

  • Depreciable mortgage: this solution is the most classic. It looks like a traditional home loan when you are making a real estate investment. Clearly, you take out a loan that you repay every month in the form of monthly installments, taking into account the capital, loan interest and various costs;
  • Real estate credit in fine: this type of credit works differently. This time, the monthly payments only allow you to repay the interest on the loan. The borrowed capital is repaid at the end of the loan. This allows you to cover the monthly payments thanks to the rental income received. However, this solution has a limit: the bank will ask for guarantees. He can, for example, ask to take out a life insurance contract.

Example of an investment in credit

Here is a simple example if you want to buy SCPI on credit.

Buy 500 shares for an amount of €100,000 in 20 years. Take out a depreciable loan. Your monthly payments are €550. You have a monthly income of €450 and pay taxes of €90 per month.

If we proceed to the monthly calculation, we will get: €450 – €550 – €90 = -€190. This is the amount of your monthly cash effort to finance your purchase of SCPI shares on credit.

Once your loan has been repaid, the monthly pension of €450 will only be reduced by the tax you pay on your property income according to your marginal tax bracket. If you want to resell your shares, you will benefit from a capital that will be increased thanks to the distribution rate.

Note, of course, that the taxation of the SCPI requires the payment of a tax on capital gains when the shares are sold. Buying SCPI shares on credit remains a very profitable operation depending on your choice of investment. Indeed, do not forget that this is not a safe investment. You do not benefit from a guaranteed capital, it is subject to market fluctuations. Your risk profile will be studied before any investment according to your financial situation and your investment objectives to adapt the risk of capital loss.

Contact a Placement Meilleurtaux consultant

Frequently asked questions about the SCPI on credit

How to buy SCPI shares on credit?

To buy SCPI shares on credit, all you have to do is take out a mortgage that will finance your project. You will have the choice between an amortizing loan and an installment loan. Meilleurtaux Placement accompanies you throughout the subscription process.

What is the advantage of SCPI to credit?

The major advantage of the SCPI over credit is to benefit from a leverage effect with low interest rates that allow you to preserve your savings. Another advantage: part of the monthly payments is covered by the income of the property.

Who to contact to invest in SCPI on credit?

You can simply contact Meilleurtaux Placement to finance the purchase of SCPI shares, we take care of everything and support you throughout the subscription process.

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