Investing in SCPI allows you to diversify your portfolio and savings by purchasing shares that generate a regular return. By favoring companies with the SRI label, you promote investments that combine profitability and responsible commitments. Here are the extra-financial criteria taken into account.
Some reasons to buy SCPI shares
The real estate investment company represents a category of investment dedicated to investment in stone without a large capital requirement. Its purpose is to collect rents, to obtain a capital gain in the long term, but above all to share the profits between the shareholders.
Regulated by the AMF (Autorité des Marchés Financiers), the SCPI is supervised at various levels in order to protect the interests of its investors and can be considered both a company and an investment fund open to non-professionals, thanks to its legal status.
In summary, invest in SCPI helps to diversify their assets and access rental investments that they could not directly achieve.
4 SCPI strategies to explore
The purpose of the SCPI varies depending on its name:
- the SCPI de rendement distributes regular dividends based on the income obtained from the rents of real estate, mainly tertiary (commercial premises, medical residences, etc.);
- The tax SCPI, as its name suggests, aims at tax optimization. The selected residential real estate properties benefit from tax exemption schemes such as Pinel, Malraux, or Denormandie;
- the SCPI in dismemberment separates the usufruct from the bare ownership knowing that the usufructuary receives the property income for a defined period and that the bare owner buys the shares at a discount. The latter does not have to pay tax since he does not receive any income during the dismemberment period and his return is therefore made in the form of capital gains in the long term;
- The European SCPI allows you to diversify your investments to access more dynamic markets outside France, and at the same time benefit from advantageous taxation.
SCPI labeled ISR: operation and purposes
The SRI label can be interpreted as a Socially Responsible Investment, awarded following a long certification process carried out by independent organizations. Only SCPIs committed to applying the strict rules of sustainable development can claim access to this label. The choice of a property is therefore based on financial considerations, but also on criteria such as:
- respect for environment and ecology ;
- ethical and social rules within the company;
- human rights;
- governance through decision-making and regulations, which must be based on the common interest, etc.
How to define ESG criteria?
Better consideration of environmental criteria, social and ethical contributes to the commitment to a more responsible economy, focused on people. The parameters gathered within the ESG (environment, social and governance) are strictly evaluated and a rating is attributed to the company making efforts at this level.
The strengths of ISG-labeled SCPIs
The highest-rated companies are recognized as those that achieve the best financial performance over the long term. Indeed, the real estate acquired has strong potential and a certain attractiveness for individuals looking for housing, as well as for professionals wishing to occupy commercial or industrial premises. With the increase in demand for responsible investments and alignment with current market trends, the SCPI ISR meets a specific need.
Why and how to invest in an SCPI with an SRI label?
By choosing a company with this label, you consolidate your investment, since you are investing your money in committed and perfectly constructed projects, regularly assessed for their financial performance and their ESG commitments. The other advantage is fiscal: the law actually authorizes a reduction in the IFI (wealth tax) for any subscription of shares in an SCPI.
Choosing an ISR SCPI
The companies that have been awarded the label are very heterogeneous, with some operating in a traditional way and others that are particularly innovative, focused 100% on sustainable development. To determine and clarify the commitment of each, the European Union has registered legislation known as the SFDR (Sustainable Finance Disclosure Regulation). This law deals in Article 8 with SCPIs that declare that they take into account social and/or environmental criteria, and in Article 9 with those that have a sustainable investment objective.
Steps to invest in an ISR SCPI
A careful review of the performance of the SCPIs presented over the years and their target for the current year is the essential prerequisite for purchasing shares. Experienced and well-trained AMF-certified advisors help to build a well-balanced portfolio, limiting risks and adapted to current economic issues. Complete the procedures online in less than 5 minutes by following the step-by-step guide:
- determine which SCPIs are the most profitable among the selection after registering on the platform;
- complete your secure subscription by benefiting from encrypted payment;
- Receive your regular rent payments directly into your bank account.
Simulation: a reliable way to determine the profitability of your investment
Investing in real estate managed by a SCPI can be financed on credit and allow a deduction of loan interest from the monthly payments made. This financial transaction generates a leverage effect that increases the contribution capacity and the amount allocated to obtaining passive income.
The credit simulator gives you an overview and details of your investment. Enter the amount you wish to borrow, your personal contribution, the repayment term, the borrowing rate and the probable gross return of the targeted SCPI! The calculator estimates for you the potential gain, the income in the long term and the average savings effort. A curve of the assets built up is also available to you.
Investing in an ISR-labeled SCPI is an advantageous financial transaction that allows you to reconcile your financial objectives with ethical and environmental concerns. The traditional advantages of SCPIs such as diversification and simplified management are retained, but another value is brought to the investment. To select the best-rated companies, offering ideally located and financially solid real estate, get help from an SCPI expert, capable of optimizing your portfolio quickly!