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SCPI

If you would like to invest in French Real Estate you might choose between two different opportunities

1. First option: to buy directly a property.

It is remarkably trustworthy in France because the legislation is especially severe, so if you purchase properties you will be the possessor at 100%.

But the main problem for investors who wants to rent their appartment or house is that French law is overprotective for the renter, and therefore makes it uneasy for the owner.

Let’s take an example: if your tenant stops paying you the rent, you can’t throw him out, but you have to conduct official actions with lawyers, and then you have to wait for a judgement to be made in order to be authorized to expropriate the tenant

And the expropriation can’t be applied during the winter time, you will have to wait until the next spring.

From the time you start the procedure until the expropriation it can easily take one year during which you don’t receive any money anymore but you’re spending money for lawyers…

2. The other way to invest in French Real Estate is much easier and safer: you just need to buy SCPI shares

SCPI is a company that gathers shareholders money, then invest it by buying real estate, rent it and distribute the income each quarters to the shareholders.

As a shareholder you are informed of course of what investments have been made, and you receive a net income.

Investing in Scpi is investing in Real Estate without the hassles: the Scpi handles everything: Selecting and buying buildings, selecting renters, cashing the money and redistributing it to shareholders.

Besides selling your share is very easy: you just need to send a form to the Scpi and tell how many shares you need to sell, then they will sell them to the buyers.

There are many Scpi in France, for the better and the worse, so you should make a careful choice.

You can choose for example Scpi Scellier, they buy newly built buildings and rent the apartments to individuals..

The yield is low, about 3%, but it offers you some income tax reduction, so if you pay revenue taxes in France then it’s made for you

A different kind is titled Scpi Scellier Renove, which is the very same principle except that it invests in aged buildings that are renovated

You can also choose to invest in Scpi Malraux, that invest in old buildings located in protected areas, usually downtown. It’s an excellent way to get access to prestigious real estate

A different type is called Scpi de Rendement, it invests in professional and industrial buildings. The yield is pretty good, close to 5,40% net in 2011.

You have 2 groups:

Many are specialized in Workplace Buildings

Many are specialized in Business Constructions

According to me, Scpi offers the best ratio yield vs Security, you have a great yield, real estate investment wihtout all the hassles, and better liquidity

If you want to discover a lot more about Scpi, then you are advised to visit the internet site of one of the recommended Page SCPI