One investment meeting these two criteria does exist… SCPIs! ("Sociétés Civiles de Placement en Immobilier"). In 2020, SCPIs produced an average yield of 4.18%. And in 2021, it rose to 4.31%! The SCPI ecosystem is, however, vast, currently comprised of over 200 possibilities. You should therefore obtain precise information on the investments corresponding most closely to your situation and patrimony. Furthermore, you should be aware that certain SCPIs offer even more generous yields, with annual distributions of over 6%. 

Reminder of the principle behind this investment:

SCPIs acquire real estate, the great majority professional (office and commercial premises, logistics…): they also handle their management, and pay the rents received to savers. Given that the investment takes the form of shares, the saver can benefit from a real estate asset for an investment of a few thousand  euros while having its management handled. Investing in a wide property portfolio also drastically diminishes the risk run by the investor. 

Bare ownership for high taxation levels:

For the highest marginal tax brackets (from 30%), it is advisable to acquire SCPI bare ownership. The principle is simple: the investor holds SCPI shares without putting them to use for a number of years determined in the contract. The advantage is that the investor benefits from a  markdown on the price of the shares, and will also benefit from revaluation of his shares over time, without being subject to taxation inherent to the rents collected. 

Further leverage: credit!

Credit is still one of the best ways to invest. It in fact makes it possible to benefit from a tax advantage by allowing the investor to deduct his interest on the loan from his property income. Furthermore, despite the recent rise in interest rates, the leverage effect remains, as the annual income delivered by SCPIs are higher than current rates. This leverage can be a powerful tool for asset optimisation. 

If you would like further advice and more information, you can contact Vaneau Gestion Privée advisors by calling 01 45 03 80 95, or by E-mail at service-client@vaneaugp.fr. 

Vaneau Gestion Privée
50, rue de Châteaudun, 75009 Paris
vaneaugp.fr