Investing in real estate through Real Estate Investment Companies (SCPI) represents an attractive investment strategy combining potential returns and stability. SCPIs offer a safe entry point into real estate investment, thanks to their diversified portfolio of properties and their geographical dispersion. However, the question of the method of acquiring SCPI shares arises: Is it more beneficial to buy directly or through a life insurance contract? ?
Direct purchase of SCPI shares
Direct acquisition of SCPI shares is relatively easy. It can be done directly with the selected SCPI’s management company or through a bank or financial advisor. This investment method has many advantages, including the freedom to choose the SCPI of your choice from around 200 available in the market.
In addition, the required initial investment is affordable, with share prices typically around 100 euros. However, it is important to consider the tax aspect of this investment, which is subject to income tax and social security contributions of 17.2%.
Purchase of SCPI Shares by Life Insurance
Choosing to receive SCPI shares in a life insurance policy presents a significant tax benefit. In fact, no tax is due as long as the shares are retained. In case of redemption of shares before eight years, the gains are subject to flat rate tax of 30%. After eight years, an annual reduction of 4,600 euros for an individual and 9,200 euros for a couple is withdrawn. This method also allowsAccess shares at low cost For direct purchase. However, the choice of SCPI is limited to the options offered by the insurance company.
📌8/ SCPI 📊
→ Yield: 4 to 6% 💪
→ Invest in cash, on credit, in shares, life insurance/PER 🔄
→ Entrance ticket: from €200 💼💡Remember to favor European SCPIs, which are taxed less 😉 pic.twitter.com/zG0Q3JBSR7
– Fortune / Portal SCPI – Asset Management (@PortailScpi) January 29, 2024
Make the right choice
The decision between buying outright and buying through life insurance depends on the investor’s objectives and tax situation. SIf the objective is to minimize the tax impact, life insurance seems to be the best option. On the other hand, those who favor freedom of choice and accept the associated taxation, Buying direct offers more flexibility.
It is important to remember that the SCPI market, while offering certain stability, is subject to fluctuations in the real estate market. Compensation may vary based on industry development. Despite the current uncertainties, SCPIs continue to offer attractive returns compared to conventional investments, thus representing a relevant investment option to diversify your portfolio.
Whether you choose to purchase outright or through life insurance, SCPI is an interesting real estate investment. Each method has its advantages and disadvantages, and the choice should be made based on the investor’s personal goals, tax position and risk tolerance. As with any investment, an informed approach and consultation with professionals can prove invaluable in navigating the SCPI landscape.
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