We know that real estate is the favorite investment of the French, it is not always easy to access it: an often significant cost, complex administrative procedures or even too little time to allocate to rental management can be so many obstacles to overcome.
Also, no one can predict how the current Covid-19 crisis will affect our environment in the coming months. This is why it seems wise to move towards a diversification strategy.

How about investing in the real estate sector without having to overcome these obstacles? Are you divided between real estate and financial investment, and if you could combine the two in one and the same product?

You must have heard of indirect real estate. But what does this mean in concrete terms?

It is a way of investing indirectly in real estate: you buy shares in companies or management organizations approved by the Autorité des Marchés Financiers, and your funds are invested by these companies for the acquisition, renovation and the management of real estate assets.

They offer access to an attractive market thanks to a diversification of goods: offices, shops, service property or even ideally placed housing, in the heart of the city.

There are several ways to invest in indirect real estate through different types of companies, adapted according to the investment objective.

Are you looking to generate an immediate return while preserving capital, favor the value of the asset or even bet on a strong appreciation of the property?

Let's take a closer look at what solutions can answer them:

• SIIC (Listed Real Estate Investment Company)

It is an investment in shares of real estate listed on the stock market, the underlying of which is real estate, invested internationally or not.
As a result, volatility is high with high risk, but this type of investment can achieve high performance potential, on the order of 10% per year on average. The units are 100% liquid; that is, they can be resold at any time.
The perfect combo for the investor who wants to go to the financial markets while betting on a real estate asset and juggle between performance and liquidity.

• The SCPI (Civil Society of Real Estate Investment)

From return SCPIs - to generate additional income, to tax SCPIs - to optimize your taxation, or even international ones investing in goods abroad - to diversify your investment as much as possible, you have several choices. Unlike SIICs, they are not listed on a stock exchange and the funds are fully invested in tangible real estate assets.
SCPI units offer better security thanks to low volatility and a return of around 4 to 6% per year.
Liquidity is variable since pre-term resale requires that a new buyer position itself.
They relate more to profiles who wish to invest in complete security over the medium to long term while benefiting from an attractive return.

• OPCI (Collective Investment Organization)

The perfect balance to combine performance, liquidity and security. There are two legal forms that vary the applicable tax translucency: Real Estate Investment Funds (REITs) (income is treated as real estate income) and Real Estate Investment Placement Companies (SPPICAV), which invest in property to both nationally and internationally (income being classified in this category as BICs, industrial and commercial profits).
Not listed on the stock market, OPCIs are composed of a minimum of 60% of real estate assets, a maximum of 35% of other financial assets and 5% of cash. They offer better liquidity than a SCPI because the organization agrees to redeem your units if you want to sell them. The volatility is higher than for a SCPI, but less than for a SIIC and the performance is between 4 to 6% per year.
They are aimed at fairly secure profiles who wish to have a good return while having a pocket of liquidity.

Is it more strategic to hold its SCPI shares directly than in a life insurance or capitalization contract or even through a real estate company?
Depending on your situation, should you favor a fund benefiting from tax transparency?
Is it better to go on SIICs and ensure liquidity or favor the security of SCPIs?

So many questions that our Wealth A7 experts can answer!

If you too want to simplify your investment while having a good return, we are at your side to guide you towards the best solution. Contact us!